70.2K

Verified Solution

Link Copied!

MBA Accounting Test 1. The advance receipt of future revenues and are recorded as liabilities when cash is received. a. Accrued revenue b. Revenue e. Prepaid expense d. Unearned revenue 2. Expenses paid and recorded as assets before they are used are called: a. Accrued expenses b. interim expenses c. Prepaid expenses d. Uneared expenses 3. If the assets of a company increase by S100,000 during the year and its liabilities increase by 35,000 during the same year then the change in equity of the company during the year must have been: a. An increase of $135,000 b. A decrease of $135,000 c. A decrease of $65.000 d. An increase of $65,000 4. The accounting assumption that divides the life of a business into fixed accounting periods for reporting purposes is the a. Entity Convention b. Monetary Convention c. Historical Cost Convention d. Accounting Period Convention 5. Which of the following items is not an expense under the accrual basis accounting a. Depreciation expense b. Insurance expense c. Salary expense d. Prepaid rent expense 6. A statement of a firm's revenue, expense and profit or loss. a. Income Statement b. Cash Flow Statement c. Balance Sheet d. All of the above 7. External users of accounting information include: a Creditors. b. Customers. c. Suppliers. d. All of these 8. Which of the following items is a an asset account? a. Accounts payable b. Rent expense

Answer & Explanation Solved by verified expert

See Answer