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Accounting Question~ please help?

Question 1 Chunky Bags sold items for $20,000 cash using the cash basis of accounting and did not record a sale on account. This transaction should have been recorded under accrual accounting. The income statement defect of the cash basis with respect to this transaction is the failure to record an entry to which account? Accounts Receivable Cash Sales Both Accounts Receivable and Sales Question 2 A journal entry contains a debit to an expense account and a credit to an asset account. This is an example of a(n): accrued expense. deferred expense. accrued revenue. deferred revenue. Question 3 On December 31, 2009, salaries owed to employees total $4,150. These will be paid on January 4, 2010. An adjusted trial balance prepared on December 31, 2009, includes which of the following? Unearned Salaries, $4,150 Salaries Expense, $4,150 Both Salaries Expense, $4,150 and Salaries Payable, $4,150. Salaries Payable, $4,150 Question 4 Kincaid Company's Retained Earnings balance on January 1 was $6,000. During the current year, Kincaid earned $3,400 in revenues and incurred $4,200 in expenses. Kincaid paid $2,500 in dividends, all in cash. After the closing entries are made, Kincaid's Retained Earnings balance on December 31 will be: $2,700. $4,300. $6,000. $7,700. Question 5 Ben George Inc has Accumulated Depreciation─Truck of $12,000 as of December 31, 2008. This relates to a Truck purchased for $16,000, with a salvage value at the end of five years of $1,000. The amount in the Accumulated Depreciation─Truck account as of December 31, 2009 is: $12,000. $15,000. $3,000. $1,000. Question 6 The book value of an asset is computed as: the cost of a plant asset less depreciation expense. depreciation expense plus accumulated depreciation. the cost of a plant asset less accumulated depreciation. the cost of a plant asset plus accumulated depreciation. Question 7 A company started the year with $400 of supplies. During the year the company purchased additional supplies costing $1,600. There were $800 of supplies on hand at the end of the year. An adjusted trial balance prepared at the end of the accounting period will show the following balance in supplies: $1,400. $800. $0. $600. Question 8 Which of the accounts listed below is a NOTa permanent account? Dividends Prepaid Rent Salary Payable Unearned Revenue Question 9 An adjustment for which the business paid or received cash in advance is: expense recognition. earned revenue. an accrual. a deferral. Question 10 On December 1, 2009, Debbie's Plantscape receives $2,400 in advance for an agreement to care, in equal monthly efforts, for a client's office plants during the months of December, January, and February. As of December 31, 2009, Debbie's Plantscape would have: recognized $800 revenue under accrual accounting, or have recognized $2,400 revenue under cash-basis accounting. recognized $800 cash under accrual accounting, or have recognized $2,400 cash under cash-basis accounting. a $0 liability to its client under accrual accounting, or have a $1,600 liability to its client under cash-basis accounting. a $1,600 liability to its client under accrual accounting, or have a $2,400 liability to its client under cash-basis accounting.

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1. Answer: Question 1 Both Accounts Receivable and Sales Question 2 deferred expense - also called prepaid asset Question 3 Both Salaries Expense, $4,150 and Salaries Payable, $4,150. Question 4 $2,700 ($6000 + $3400 - $4200 - $2500) Question 5 $15,000 (($16000 - $1000) / 5 years + $12000) Question 6 the cost of a plant asset less accumulated depreciation. Question 7 $800 (only the remaining balance will be shown) Question 8 Dividends Question 9 an accrual Question 10 recognized $800 revenue under accrual accounting, or have recognized $2,400 revenue under cash-basis accounting.