ACCT 105 Week 3 Quiz

The depreciation expense on office equipment was recorded by a debit to Depreciation Expense and a credit to Office Equipment. If statements are now prepared:Question options:

If the subtotal of the income statement debit column is $250,000, the subtotal of the income statement credit column is $300,000, and the total of the Statement of Retained Earnings debit column is $475,000, what is the beginning balance in Retained Earnings? (Assume no dividends were declared.)Question options:

Which of the following statements is false?Question options:

The completed-contract method is a method of recognizing revenue on long-term projects in which no revenue is recognized until the period in which the project is completed.Question options:

The completed-contract method recognizes revenues at the point of sale.Question options:

The historical cost approach to recording accounting data has been severely criticized in periods of high inflation because often the income statement reports income when the economic value of the owner’s investment has declined.Question options:

Losses are asset expirations which are incurred voluntarily to produce revenue.Question options:

The installment basis of revenue recognition is acceptable only when a high degree of certainty exists as to the collectability of the installments.Question options:

Materiality is a modifying convention which allows the accountant to deal with immaterial items in a theoretically incorrect but expedient manner.Question options:

Many accounting measurements are estimates and involve approximation and judgment.Question options: