Tiêu đề FINAL TRIAL EXAM FINAL PA.pdf ✅

FINAL TRIAL EXAM (WSU / GP / ISB) PART A.1: WSU STUDENTS 50 MCQS (GP & ISB STUDENTS MOVE TO PART A.2 PLEASE) Question 1: The starting point of the accounting process is a. communicating information to users. b. identifying economic events. c. recording economic events. d. None of these answers are correct. Question 2: The accounting process involves all of the following except a. identifying economic transactions that are relevant to the business. b. communicating financial information to users by preparing financial reports. c. recording nonquantifiable economic events. d. analyzing and interpreting financial reports. Question 3: Financial accounting provides economic and financial information for all of the following except a. creditors. b. investors. c. managers. d. other external users. Question 4: Net income for the period is determined by subtracting total expenses and drawings from total revenues. a. True


b. Debit Office Supplies, $3,600; Credit Office Supplies Expense, $3,600. c. Debit Office Supplies Expense, $3,600; Credit Office Supplies, $3,600. d. Debit Office Supplies, $2,400; Credit Office Supplies Expense, $2,400. Question 13: If an adjustment is needed for prepaid expenses, the a. asset and related expense are overstated before adjustment. b. asset and related expense are understated before adjustment. c. asset is understated and the related expense is overstated before adjustment. d. asset is overstated and the related expense is understated before adjustment. Question 14: If a business has received cash in advance of services performed and credits a liability account, the adjusting entry needed after the services are performed will be a. debit Unearned Revenue and credit Cash. b. debit Unearned Revenue and credit Service Revenue. c. debit Unearned Revenue and credit Prepaid Expense. d. debit Unearned Revenue and credit Accounts Receivable. Question 15: Waterfalls Corporation purchased a one-year insurance policy in January 2008 for $66,000. The insurance policy is in effect from March 2008 through February 2009. If the company neglects to make the proper year-end adjustment for the expired insurance a. Net income and assets will be understated by $55,000. b. Net income and assets will be overstated by $55,000. c. Net income and assets will be understated by $11,000. d. Net income and assets will be overstated by $11,000.