1. Accrual accounting is used because a. cash flows are considered less importan

Question

1. Accrual accounting is used because

a. cash flows are considered less important.

b. it provides a better indication of ability to generate cash flows than the cash basis.
c. it recognizes revenues when cash is received and expenses when cash is paid.
d. none of the above.

2. A trial balance

a. proves that debits and credits are equal in the ledger.
b. supplies a listing of open accounts and their balances that are used in preparing financial statements.
c. is normally prepared three times in the accounting cycle.
d. all of these.

3. Madsen Company reported the following information for 2012:

a. $231,600

b. $121,800
c. $166,200
d. $217,800

4. On June 30, 2012, when Ermler Co.'s stock was selling at $65 per share, its capital accounts were as follows:

If a 100% stock dividend were declared and distributed, capital stock would be (Points : 3) Accrual accounting is used because cash flows are considered less important. it provides a better indication of ability to generate cash flows than the cash basis. it recognizes revenues when cash is received and expenses when cash is paid. none of the above. A trial balance proves that debits and credits are equal in the ledger. supplies a listing of open accounts and their balances that are used in preparing financial statements. is normally prepared three times in the accounting cycle. all of these. Madsen Company reported the following information for 2012: For 2012, Madsen would report other comprehensive income of $231,600 $121,800 $166,200 $217,800 On June 30, 2012, when Ermler Co.'s stock was selling at $65 per share, its capital accounts were as follows: If a 100% stock dividend were declared and distributed, capital stock would be $4,000,000. $4,600,000. $8,000,000. $8,800,000. Given below are the present value factors for $1.00 discounted at 10% for one to five periods. Each of the items 69 to 72 is based on 10% interest compounded annually. What is the present value today of $6,000 to be received six years from today? $6,000 times 0.909 times 6 $6,000 times 0.751 times 2 $6,000 times 0.621 times 0.909 $6,000 times 0.683 times 3

Explanation / Answer

b. it provides a better indication of ability to generate cash flows than the cash basis.

D. all of these.

a. $231,600

c. $8,000,000.

c. $6,000

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