Question

UUS! 1043 Quiz (from chapter 3 and 4)2 Student name and number nber's rent payment. Quick Corp. mails the 1) On October 25, 2013 Quick Corp. prints a cheque for November's rent payment. Quick Corp. cheque on October 27 to the landlord. The landlord receives the cheque October 31 and cashes the on November 2. When should Quick Corp. record the rent expense associated with this transaction A) October 25, 2013 B) October 27, 2013 C) November 30, 2013 D) November 2, 2013 2) Under the revenue recognition principle, a business should record revenue when the business A) receives an order from a customer for goods or services B) prepares the invoice (bill) for goods or services C) delivers goods or services to a customer D) receives payment from a customer for goods or services. 3) A company using the accrual basis of accounting pay for one year of rent in advance. The entry record this payment will involve a debit tec A) Rent Revenue B) Rent Expense C) Prepaid Rent D) Deferred Rent Revenue 4) A deferral refers to an event: A) where the recognition of an expense or revenue is recorded before the cash is paid or received B) where the liability for an expense is recorded after the expense is actually incurred C) where the liability for an expense is recorded before the expense is actually incurred D) where the recognition of an expense or revenue is recorded after the cash is paid or received 5) Honey Brown Inc. paid six months' rent in advance totalling $9.000. At the end of the first month, the adjusting entry would include a: A) debit to Prepaid Rent for $7.500 B) debit to Prepaid Rent for $1,500 C) debit to Rent Expense for $7.500 D) debit to Rent Expense for $1.500 6) Upper Canada Corp. bought $72,000 of equipment with an estimated service life of 4 vears. The equipment will be worthless at the end of its life. The annual amount of depreciation on this equipment is: A) $18,000 B) $36.000 C) $72,000 D) SO 7) The closing entry made for dividends would include: A) a debit to Dividends and a credit to net income B) a debit to Retained Earings and a credit to Dividends C) a debit to net income and a credit to Dividends D) a debit to Dividends and a credit to Retained Earnings 8) The ending balance in Retained Earnings is found on: A) both the statement of retained earnings and the balance sheet B) only the statement of retained earnings C) both the income statement and the balance sheet