b. C. 7. Which of the following is NOT a temporary account? a. Unearned Revenue. b....

Transcribed Image Text:

b. C. 7. Which of the following is NOT a temporary account? a. Unearned Revenue. b. Salary Expense. d. 9. Somerset Leasing RECEIVED $12,000 for 24 months rent in advance. How should Somerset record this transaction? a. Prepaid rent 8. Independent auditors express an opinion on the: a. Compliance of financial statement to GAAP. Cash c. Interest Revenue d. Consulting Expense. b. Accuracy of financial statement. c. Soundness of a company's future. d. Quality of a company's management. Rent expense Interest expense Unearned revenue Salaries expense a. b. Interest payable C. d. 10. An example of a contra asset account is a. Depreciation expense Salaries payable b. Accounts receivable c. Accumulated deprecation d. Sale revenue II III Liability Expenses and Losses a. b. I only. c. II only. d. I and II only. I, II, and III. 11. Which of the following elements are reported in income statement? 1 Revenues and Gains 12,000 Revenues Gains Expenses Losses 12,000 12,000 a. Consistency characteristic. b. Matching principle. c. Relevance characteristic. d. Revenue recognition principle. 12,000 12,000 12,000 12. Which of the following elements is an increase in retained earnings arising from a company's ongoing major or central operations? 12,000 12,000 13. Revenue is generally recognized when realized or realizable and earned. This statement describes the b. C. 7. Which of the following is NOT a temporary account? a. Unearned Revenue. b. Salary Expense. d. 9. Somerset Leasing RECEIVED $12,000 for 24 months rent in advance. How should Somerset record this transaction? a. Prepaid rent 8. Independent auditors express an opinion on the: a. Compliance of financial statement to GAAP. Cash c. Interest Revenue d. Consulting Expense. b. Accuracy of financial statement. c. Soundness of a company's future. d. Quality of a company's management. Rent expense Interest expense Unearned revenue Salaries expense a. b. Interest payable C. d. 10. An example of a contra asset account is a. Depreciation expense Salaries payable b. Accounts receivable c. Accumulated deprecation d. Sale revenue II III Liability Expenses and Losses a. b. I only. c. II only. d. I and II only. I, II, and III. 11. Which of the following elements are reported in income statement? 1 Revenues and Gains 12,000 Revenues Gains Expenses Losses 12,000 12,000 a. Consistency characteristic. b. Matching principle. c. Relevance characteristic. d. Revenue recognition principle. 12,000 12,000 12,000 12. Which of the following elements is an increase in retained earnings arising from a company's ongoing major or central operations? 12,000 12,000 13. Revenue is generally recognized when realized or realizable and earned. This statement describes the

Answer rating: 100% (QA)

7 Answer a Unearned Revenue Explanation A temporary account is a general ledger account that begains with zero balance each accounting year At the end ... View the full answer