Question

1. Which of the following line items below is present in both the multistep income statement and an income statement in which expenses are simply subtracted from revenues to arrive at net income?

Multiple Choice

A. Income before income tax expense

B. Income from operations

C. Net income

D. Gross profit

2. Which of the following would be added to the ending cash balance per bank when performing a bank reconciliation?

Multiple Choice

A. Electronic fund transfers

B. Service charges

C. NSF checks

D. Deposits in transit

3. On October 10, a company paid $36,000 to a supplier. Of that amount, $6,000 was for supplies received on October 10 and $30,000 was for supplies that were purchased on account during September. The journal entry to record the $36,000 payment would include a debit to:

Multiple Choice

A. Supplies for $30,000, a debit to Accounts Payable for $6,000, and a credit to Cash for $36,000.

B. Supplies and a credit to Cash for $36,000.

C. Supplies Expense and a credit to Cash for $36,000.

D. Supplies for $6,000, a debit to Accounts Payable for $30,000, and a credit to Cash for $36,000.

Answer 1

1.

Net income is present in both the multi step income statement and an income statement in which expenses are simply subtracted from revenues to arrive at net income

Correct option is (C)

2.

Deposits in transit would be added to the ending cash balance per bank when performing a bank reconciliation.

Correct option is (D)

3.

On October 10, a company paid $36,000 to a supplier. Of that amount, $6,000 was for supplies received on October 10 and $30,000 was for supplies that were purchased on account during September. The journal entry to record the $36,000 payment would be as under:

Journal

	Supplies	6,000
	Accounts payable	30,000
	Cash		36,000

Correct option is (D)