30) Materiality in accounting A. Is the basis of measurement for long-term asset

Question

30) Materiality in accounting A. Is the basis of measurement for long-term assets B. Explains when to recognize expenses C. It used to choose among alternative accounting methods D. Requires all information that may affect the decisions of financial statement users to be reported in the financial statements E. Considers the value of using information, relative to cost of providing it 31) An increase in net assets arising from peripheral or incidental transactions is called a(n) A. Gain B. Inflow C. Revenue. D. Income 32) Which of the following statements about temporary accounts is (are) correct? 1) They are closed 2) They appear on the balance sheet 3) They appear on the income statement 4) They begin the accounting period with a balance of zero. A. Statements 1, 2 and 4 are true B. Statements 1, 3 and 4 are true. C. Only statement 1 and 2 are true. D. All 4 statements are true 33) Which of the following year-end adjusting entries is usually reversed? A. Depreciation expense. B. Amortization expense. C. Entry for Expired Prepaid rent. D. Bad debts expense. E. Accrued interest payable 34) Which of the following accounts should never be debited or credited when recording adjusting entries? A. Unearned revenues. B. Service Revenues. C. Accumulated Depreciation D. Cash 35) Which of the following is NOT a goal of Closing entries: A correct errors B update the Retained Earnings account C reduce dividend account balance to zero D reduce all temporary account balances to zero

Explanation / Answer

30) option D is correct

31)option A is correct -gain

Generally Sudden increase in net assets is called gain

33) option E is correct  

Explanation debit temporary interest expense

Credit accrued interest payable

At ending

Debit accrued interest patable

Credit temporary rent expense

34)optiin A - unearned revenues

35)option A is correct - correct errors

Remaining options are the goals if the closing entries

Thank you

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