Crowdly

Use the following information to answer the question(s) below.

In performing a vertical analysis, the percentage for accounts receivable is

0.5%.

10.0%.

5.0%.

1.0%.

Jasmine Corporation purchased a notebook computer for $3,600 on December 1. The useful life of the computer is estimated to be three years. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

debit Accumulated Depreciation–Equipment, $1,200; credit Depreciation Expense, $1,200.

debit Depreciation Expense, $1,200; credit Accumulated Depreciation–Equipment, $1,200.

debit Depreciation Expense, $100; credit Accumulated Depreciation–Equipment, $100.

debit Equipment, $100; credit Accumulated Depreciation–Equipment, $100.

Which of the following is the most appropriate definition of accounting?

the information system that identifies, records, and communicates the economic events of an organization to interested users

100%

electronic collection, organization, and communication of vast amounts of information

the interconnected network of subsystems necessary to operate a business

a means of collecting information

On a statement of cash flows using the indirect method, depreciation expense will

appear as a cash receipt in the investing activities section.

be ignored.

be added to net income in the operating activities section.

100%

be deducted from net income in the operating activities section.

Internal controls are concerned with all of the following, except

compliance with relevant laws and regulations.

effective and efficient operations.

ensuring reliable financial reporting.

computerized systems of accounting.

Accounting systems should record

all economic events.

only events that involve cash.

only events that include revenues, expenses, and cash.

events that result in a change in assets, liabilities, or shareholders' equity items.

The conceptual framework of accounting begins with

the going concern assumption.

the objective of financing reporting.

elements of financial statements.

qualitative characteristics.

Which of the following bank reconciliation items would not require a journal entry on the depositor's books?

a customer's NSF cheque

electronic payment on account

bank service charge

outstanding cheques

Horizontal analysis of comparative financial statements includes the

development of vertically analyzed statements.

calculation of liquidity ratios.

calculation of dollar amount changes and percentage changes from the previous to the current year.

evaluation of financial statement data that expresses each item in the current period's financial statement as a percentage of a base amount.