Which of the following statements about accrual basis accounting is correct? Multiple Choice

a. The items reported on the income statement continue to have an impact beyond the current period, whereas the items reported on the balance sheet impact just the current period

b. If a company uses accrual basis accounting, the company should record expenses in the same period as the revenues they generate

c. If a company uses accrual basis accounting the company should not record revenue until payments are actually received

d. IFRS does not allow accrual basis accounting for external reporting of income.

Which of the following statements is true of accrual basis accounting?

a. Accrual basis accounting is required by Generally Accepted Accounting Principles (GAAP).
b. Accrual basis accounting records revenue only when cash is received.
c. Accrual basis accounting records expenses only when cash has been paid for them.
d. Accrual basis accounting always results in greater net income than cash basis accounting.

Which of the following statements is correct regarding the drivers of operating and financial budgets? a. The sales budget will drive the cost of goods sold budget. b. The cost of goods sold budget will drive the units of production budget. c. The production budget will drive the selling and administrative expense budget. d. The cash budget will drive the production and selling and administrative expense budgets.

Find the product.

$$\$ 21.36 \times 52$$

Online purchasing has changed the retail industry. Use the bar graph to answer.

Explain why you think more money is spent on travel online than any other category.

Which of the following is true of accrual basis accounting and cash basis accounting?

• a. Accrual accounting records revenue only when it is earned.
• b. Accrual accounting is not allowed under GAAP.
• c. Cash basis accounting records all transactions.
• d. All of the above are true.

Which causes MOST problems associated with computer security?

a. accidental errors
b. disgruntled employees
c. natural disasters
d. dishonest employees
e. government spying

Which of the following is true of gross domestic product?
A. It only measures output.
B. It only measures income.
C. It is an exact measure of output.
D. It can give us guidance on the living standards of a nation.
E. It can be used to measure a firm’s output.
F. It measures price inflation.

Sabonis Cosmetics Co. purchased machinery on December 31, 2019, paying $50,000 down and agreeing to pay the balance in four equal installments of$40,000 payable each December 31. An assumed interest of 8% is implicit in the purchase price.

Instructions

Prepare the journal entries that would be recorded for the purchase and for the payments and interest on the following dates. (Round answers to the nearest cent.)

a. December 31, 2019.

b. December 31, 2020.

c. December 31, 2021.

d. December 31, 2022.

e. December 31, 2023.

The difference between social cost and private cost is a measure of the

a. loss in profit to the seller as the result of a negative externality.
b. cost of an externality.
c. cost reduction when the negative externality is eliminated.
d. cost incurred by the government when it intervenes in the market.

What structure connects the two cerebral hemispheres?

Use the Individual Cell Phone Plan table. Mia Ropa has a cell phone with Telco. In the month of March, she used 500 peak minutes and 2,000 off-peak minutes. If taxes were $12 \%$ of the total airtime charges, what was her total cell phone bill for March?

Subtract money amounts from money amounts. Find the difference. $\$ 89.12-\$ 77.64=\$ 11.48$

1a. $\$ 159.35-\$ 140.98$

1b. $\$ 207.44-\$ 56.29$

Marco's Consulting experienced the following transactions for 2016, its first year of operations, and 2017. Assume that all transactions involve the receipt or payment of cash.

Transactions for 2016

1. Acquired $50,000 by issuing common stock.

2. Received$100,000 cash for providing services to customers.

3. Borrowed $15,000 cash from creditors.

4. Paid expenses amounting to$60,000.

5. Purchased land for $40,000 cash.

Transactions for 2017

Beginning account balances for 2017 are:

$$\begin{array}{lrr} \text{Cash}&&\$65,000\\ \text{Land}&&\text{40,000}\\ \text{Notes payable}&&\text{15,000}\\ \text{Common stock}&&\text{50,000}\\ \text{Retained earnings}&&\text{40,000}\\ \end{array}$$

1. Acquired an additional $20,000 from the issue of common stock.

2. Received$130,000 for providing services.

3. Paid $10,000 to creditors to reduce loan.

4. Paid expenses amounting to$75,000.

5. Paid a $15,000 dividend to the stockholders.

6. Determined that the market value of the land is$50,000.

Required

Write an accounting equation, and record the effects of each accounting event under the appropriate headings for each year. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide appropriate titles for these accounts in the last column of the table.