Quizzes

Week 2 Quiz 4

Question 1

The accrual basis of accounting means_______________________.

o   Sales are recorded as cash is received

o   To accumulate over time, based on a natural observable increase

o   None of the answers listed defines the meaning of accrual accounting

o  Gather together like transactions for more efficient entry to the accounting system

Question 2

Under accrual basis accounting revenue is not recognized until _________________.

o   The product is sold and delivered to the end customer.

o   A customer agrees to a price and they shake hands with the sales person

o   A customer purchase order is received

o   Cash is received

Question 3

The matching principle states ______________________________.

o   All of these answers are correct relating to the matching principle

o   Expenses that have not related to any future period should be expensed in the current period

o   Expenses that recur should be recorded in a systematic manner

o  Expenses associated with revenue creation should be recorded in the same period as the revenue

Question 4

Adjusting entries apply to ___________________________

o   All of these entries

o   Prepaid

o   Depreciation

o   Unearned revenue

Question 5

Depreciation is _________________________________________.

o   The valuation of assets of a business

o   A method to increase an assets book value

o   The transfer of an asset’s cost to expense over the expected useful life of the asset

o   The opposite of residual value

ACC 205 Week 3 Discussion 1 | Assignment Help | Ashford University

LIFO vs. FIFO

The controller of Sage hen Enterprises believes that the company should switch from the LIFO method to the FIFO method.  The controller’s bonus is based on the next income.  It is the controller’s belief that the switch in inventory methods would increase the net income of the company.  What are the differences between the LIFO and FIFO methods?

1. Identify the type of observational study (cross-sectional, retrospective, prospective). The Nielsen Media Research Company uses people meters to record the viewing habits of about 5000 households, and today those meters will be used to determine the proportion of households tuned to CBS Evening News.

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2. Identify which of these types of sampling is used: random, stratified, systematic, cluster, convenience. In a study of college programs, 820 students are randomly selected from those majoring in communications, 1463 students are randomly selected from those majoring in business, and 760 students are randomly selected from those majoring in history.

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3. Determine what completes the following definition: _____ occurs in an experiment when you are not able to distinguish among the effects of different factors.

4. Determine which of the four levels of measurement (nominal, ordinal, interval, ratio) is most appropriate. The subjects in which college students major.

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5. Identify the type of observational study (cross-sectional, retrospective, prospective). A town obtains current employment data by polling 10,000 of its citizens this month.

s.

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6. Identify which of these types of sampling is used: random, stratified, systematic, cluster, convenience. The author was an observer at a Town of Poughkeepsie Police sobriety checkpoint at which every fifth driver was stopped and interviewed. (He witnessed the arrest of a former student.)

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7. Identify whether the sampling plan results in a random sample, simple random sample, or neither. NBC News polled reactions to the last presidential election by surveying adults who were approached by a reporter at a location in New York City.

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8. Solve the problem. What is 5% of 5020?

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9. Determine what completes the following definition: A parameter is a numerical measurement describing some characteristic of a:

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10. Solve the problem. In a Gallup poll of 976 adults, 68 said that they have a drink every day. What is the percentage of respondents who said that they have a drink every day? Round to the nearest tenth of a percent.

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11. Solve the problem. Convert 83% to an equivalent decimal.

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12. Solve the problem. In a Gallup poll of 976 adults, 32% said that they never drink. What is the actual number of surveyed adults who said that they never drink? Round to the nearest whole person.

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13. Use common sense to determine whether the given event is impossible; possible, but very unlikely;

or possible and likely. John rolled a pair of dice and got a total of 14.

14. Determine whether the given description corresponds to an observational study or an experiment. A quality control specialist compares the output from a machine with a new lubricant to the output of machines with the old lubricant.

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15. Use common sense to determine whether the given event is impossible; possible, but very unlikely;

or possible and likely. Andre flipped a coin twice and it came up the same way both times.