University Of Arizona ATMO 005 Quiz 12 1)The Simmons Company had supplies on hand at the end of the month worth $100 and during that month the company had purchased $200 of supplies

University Of Arizona

ATMO 005

Quiz 12

1)The Simmons Company had supplies on hand at the end of the month worth $100 and during that month the company had purchased $200 of supplies. If $600 worth of supplies were on hand at

the beginning of the month, then the related adjustment transaction for that month would record supplies expense of

$500

$300

$600

$200

$700

2. Revenue should be recorded when __________________

the product passes to the buyer.

cash is received from the buyer.

the purchase is requested by the buyer.

 the product is produced.

3. Which of the following transactions would be used to record the sale of a gift card by a company such as Best Buy?

+Cash, +Revenue (Cash), +Inventory

+Cash, +Unearned Revenue

(Cash), (Cost of Goods Sold)

4. Depreciation is a type of ___________________________

Revenue reclassification

 Revenue deferral

Revenue accrual

Expense accrual

Expense deferral

5. The Bates Company purchased a delivery truck on January 1st for $30,000 and expects it to be useful for 4 years at which time it can be sold for $2,000. What amount of depreciation expense would the company record each year?

7,000

7,500

8,000

3,500