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: 1.Corp. makes a large sale for $1,200 on NOV 30. Corp. sends customer a bill on DEC 05. Corp. receives customers check in payment on DEC 10. According to GAAP, on what date
is the $1,200 considered recognized?
A.NOV 30.C. DEC 05
B.DEC 01.D. DEC 1

2.On JULY 01, Corp. received a check for $24,000 for 6 months advance payment of rent.
An entry debiting CASH and crediting UNEARNED RENT for all $24,000 was made.
The adjusting entry Corp. should make on JULY 31 is:
A.debit Unearned Rent, $4,000; credit Rent Revenue, $4,000.
B.debit Rent Revenue, $4,000; credit Unearned Rent, $4,000.
C.debit Unearned Rent, $24,000; credit Rent Revenue, $24,000.
D.debit Cash, $24,000; credit Rent Revenue, $24,000.

3.On JAN 01, Corp. reported a cash balance of $12,000. During JAN, Corp. had deposits
of $3,000 and disbursements of $14,000. What is the cash balance at the end of JAN?
A.$1,000 debit balance
B.$15,000 debit balance
C.$1,000 credit balance
D.$4,000 credit balance

4.The accountant for BobCo did not make any adjusting entry for depreciation expense.
What is the effect of this error on TOTAL liabilities?
A. liabilities are understated
B. liabilities are overstated
C. liabilities are not affected
D. none of the above.

5.Which of these would have no effect on TOTAL assets or TOTAL liabilities?
A.payment of a liability
B.buying supplies on account
C.payment of an expense
D.buying supplies and paying cash

6.What accounts may have balances (that are not -0-), on a post-closing trial balance?
A.assets, liabilities & revenues.
B.revenues, expenses & capital
C.assets, liabilities & expenses
D.assets, liabilities & capital

7.Equipment with a cost of $120,000 has a useful life of 4 years and no salvage value. Using straight-line depreciation, what is the book value after 1 year?
A. $30,000C. $ 90,000
B. $60,000 D. $120,000
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