Reference no: EM132502979

Question 1. The matching principle states that:

a) Assets must match Liabilities and Shareholders' Equity
b) Dividends must match Net Income
c) Expenses must be recorded in the same period as the revenues that they give rise to.
d) Retained Earnings must match liabilities.

Question 2. Shareholders are primarily interested in:

a) the assets of a company
b) the profitability of a company
c) the liabilities of a company
d) the goodwill recorded on the Balance Sheet

Question 3. What accounts would be listed on an Income Statement?

a) Fees Earned, Rent Expense and Wages Expense
b) Cash, Accounts Receivable and Prepaid Expenses
c) Net Income and Dividends
d) Sheldon's quirky sense of humour

Question 4. The following accounts appeared on the Balance Sheet of Wolowitz Engineering:

Accounts Payable $ 100              Capital Stock $3,000                    Retained Earnings $2,000
Cash 2,540                                    Bank Loan 2,300                        Accounts Receivable 5,320
Machinery 10,500                                  Bonds Payable 18,560                Goodwill 7,600

What is the total amount of assets?

a) $37,570
b) $25,960
c) $20,960
d) $5,000

Question 5. How should Bernadette Inc. record the payment of an amount she owes her supplier?

a) Increase cash and increase accounts payable
b) Decrease cash and decrease accounts payable
c) Increase cash and increase loans payable
d) Decrease cash and decrease retained earnings

Attachment:- payment.zip