Question

43. A company is involved in  financing activities when these:

		activities involve buying and selling resources such as purchasing investments and lending to others.
		activities involve borrowing from banks, repaying bank loans, receiving contributions from shareholders, or paying dividends to shareholders.
		activities involve buying and selling productive resources with long lives (such as buildings, land, equipment, and tools).
		activities are directly related to running the core business to earn profits.

31. Expenses

		reduce Shareholders' equity.
		represent the costs that arise when a company sacrifices its resources during the accounting period.
		are reported in the period in which they are incurred to generate revenue.
		all of the choices.

24. A decrease in accounts receivable turnover ratio is indicative of:

		an increase in sales revenue.
		slower selling inventory.
		an increase in accounts receivable.
		a decline in cost of good sold

23. Which of the following is  not an expense?

		Corporate income tax.
		Dividends.
		Wages of employees.
		Interest incurred on a loan the company had taken out.

13. The unadjusted trial balance:

		is created to determine that total debits equal total credits.
		demonstrates that the accounting process is error free.
		generally lists account names in alphabetical order.
		is a preliminary financial statement for external users.

12. When cash is paid  before the expense is incurred to generate revenue, costs are stated as:

		Prepaid (asset).
		Shareholders' equity.
		Receivable (asset).
		Payable (liability).

11.Company A receives $10,000 in advance this month for work to be performed next month. This month, the company should:

		Debit Cash $10,000 and credit Deferred Revenue $10,000.
		Debit Accounts Payable $10,000 and credit Cash $10,000.
		Debit Inventory $10,000 and credit Accounts Payable $10,000.
		Debit Inventory $10,000 and credit Sales Revenue $10,000.

Answer 1

43	A company is involved in Financing activities when it is involved in borrowing from banks, repaying bank loans, receiving contributions from shareholders, or paying dividends to shareholders.
	So Option B is answer
31	All the above choices are characteristics of Expenses.
	So Option D is answer
24	Accounts Receivable Turnover ratio =Net Sales / Average Accounts Receivable
	So a decrease in the above ratio should be as a result of Increase in Accounts Receivable
	So Option C is answer
23	Dividend is not recorded as an expense in Income statement of the company
	So Option B is answer
13	The Debit and Credit side of Unadjusted Trial Balance must be equal
	So Option A is answer
12	Those costs for which cash is paid before the expense incurred are known as Prepaid expenses
	So Option A is answer
11	Cash account will be debited and Deferred Revenue will be credited by $10,000
	So Option A is answer