Question 2
If retained earnings were understated and liabilities were overstated, which of the following errors could have been the cause?
A. Making the adjustment entry for depreciation expenses twice.
B. Failure to record interest accrued on a note payable.
C. Failure to make the adjusting entry to record revenue which had been earned but not yet billed to clients.
D. Failure to record the earned portion of fees received in advance.
查看答案
In business charges depreciation in accounts, the accounting concept to be considered is the materiality concept.
A. 正确
B. 错误
Cumulative preference shares have the right to accumulate dividends in a given year if they are in arrears.
A. 正确
B. 错误
In long-term construction contracts, revenue is recognized at the point of the cash collected.
A. 正确
B. 错误
If the purchaser has been given a purchase allowance, the amount of allowance should be debited to purchase return account.
A. 正确
B. 错误