73 a company purchased supplies for cash which will be consumed during future months 4314210

73.A company purchased supplies for cash, which will be consumed during future months. Which of the following does not correctly describe the impact on the financial statements when the supplies are used during future months?

A. Total assets will remain unchanged.

B. Total assets will decrease.

C. Operating expenses will increase.

D. Operating income will decrease.

74.June's Printing Shop had the following information for office supplies:

• Ordered $1,200 of supplies March 3

• Received half the order of supplies on March 16

• Used one-third of the supplies during March

What is the total amount that should be reported as supplies expense for the month of March? 

A. $100.

B. $200.

C. $400.

D. $600.

75.Daring Dolls, Inc. received an order to provide SuperDolls for a big department store. The store paid Daring Dolls in advance for the order of SuperDolls. Which of the following describes what will occur when Daring Dolls recognizes revenue? 

A. Cash will be increased.

B. Accounts receivable will be increased.

C. Deferred revenue will be decreased.

D. Deferred revenue will be increased.

76.The core revenue recognition principle has two requirements for recognizing revenue. Which of the following is one of these requirements?

A. The customer has paid for the goods or services.

B. Delivery of goods or performance of service has occurred or is scheduled to occur.

C. The amount the company expects to receive is determinable.

D. The customer has signed a contract.

77.Revenue may be recognized: 

A. Before goods are delivered

B. After goods are delivered

C. When goods are delivered

D. Either before goods are delivered, after goods are delivered, or when goods are delivered.

78.Which of the following journal entries is correct when a company has incurred an expense for work performed but has not yet paid for theses wages to employees? 

A. Wages expensexxx

B. Wages expensexxx

C. Accrued expenses payablexxx

D. Retained earningsxxx

79.McNeil Company owed its employees for services performed and recorded a liability for the wages owed the employees. Which of the following correctly describes the impact on the financial statements when the employee wages are subsequently paid? 

A. Operating expenses are increased.

B. Retained earnings decreases.

C. Operating income does not change.

D. Total assets remain the same.

80.Which of the following journal entries correctly records the receipt of a utility bill, which will be paid for in later weeks? 

A. Utilities payablexxx

B. Utilities expensexxx

C. Utilities expensexxx

D. Retained earningsxxx

81.Which of the following is not a proper application of the revenue recognition principle? 

A. Recording the sale of merchandise on credit as sales revenue.

B. Recording rent received in advance as unearned rent revenue.

C. Recording interest revenue when cash is collected rather than when earned.

D. Reducing the unearned service revenue account for service revenue performed at the end of the accounting period.

82.Which of the following is an example of revenue or expense to be recognized in the current period's income statement?

A. Cash received from a client before the service is provided.

B. Inventory purchased for sale to customers.

C. Wages owed to employees who worked during the period.

D. Cash collected from an account receivable.