Câu 2: Company A purchases a van for $100, 000.

The van has an estimated useful life of 10 year and

Company A expects to sell this vehicle at the end of its life for $28, 000 cash. The annual depreciation
cost is:

A. $7200
B. $9600
C. $8400
D. $6000

Câu 3: Which of the following statement about a post-closing trial balance is correct?

Đóng loại tài khoản

2 nhóm: temporary vs permanent

A. A post- closing trial balance is a list of temporary accounts and their balances from the ledger
after all closing entries have been completed.
B. A post-closing trial balance is a list of permanent accounts and their balances from the ledger
after all closing entries have been journalized and posted.
C. A post-closing trial balance includes a company’s assets, liabilities, and equity, which are
identical to those in the income statement.
D. A post-closing trial balance is prepared to verify all permanent accounts have zero balances.

Câu 4: At the end of the fiscal year, an adjusting entry was made for accrued salaries of $500. The
salaries for one week $1,250 were paid on the first Friday of the new fiscal period. The entry to record
paying the salaries expense on Friday would be a:

A. Debit Salary Expense $500, Debit Salary Payable $750, Credit Cash $1,250
B. Debit Salary Expense $750, Debit Salary Payable $500, Credit Cash $1,250
C. Debit Salary Expense $1,250, Credit cash $1,250
D. Debit Salary Expense $1,250, Credit Salary Payable $1,250

Câu 5: According to Accrual accounting basis, revenues are recognized when cash is received, and
expenses recorded when cash is paid. False

Câu 6: Which of the following is a permanent account?

A. Interest Expense
B. Patents (bảng quyền sở hữu trí tuệ, intangible assets)
C. Bad debt expense
D. Gain on sale of Equipment

Câu 7: Assets, liabilities and equity accounts are not closed, these accounts are called

A. Accrued accounts
B. Nominal accounts
C. Temporary accounts
D. Permanent accounts
Câu 8: What are the phases in completing the accounting cycle in any business?

A. Recording, Adjusting, closing, completing

B. Recording, closing, adjusting, summarizing
C. Recording, classifying, summarizing, interpreting
D. Recording, posting, summarizing, closing

Câu 9: On December 1, 20x1, a three-year insurance policy was purchased for $72,000 with
coverage to begin immediately. What is the amount of insurance expense that appears on the
company’s income statement for the year ended December 21, 20x1?

3 năm = 36 tháng

72 000 : 36 = 2000

A. $1000
B. $3000
C. $4000
D. $2000

Câu 10. The length of time into which life of a business is divided for the purpose of preparing
periodic financial statement is called:

A. Interim period
B. Calendar year
C. Natural business year
D. Accounting period