ACCT 2130: Chapters 1-3

Which of the following are considered external users? Check all that apply.

• Suppliers

• Customers

• Employees

• Managers

Which of the following would be issued if the auditor believes the financial statements are presented in conformity with generally accepted accounting principles?

• Qualified Opinion

• No Opinion

• Adverse Opinion

• Unqualified Opinion

Who is responsible for the accuracy of financial statements?

• Management

• Board of Directors

• Investors

• Auditors

An expense that has been recorded but not yet paid is called a(n)

• Deferred Revenue

• Unearned Revenues

• Accrued Liabilities

• Long-term Liabilities

Highly liquid investments that can be quickly converted to cash are known as

• Certificates of Deposit

• Accounts Receivable

• Cash Equivalents

• Current Assets

Check all of the accounts that are permanent accounts.

• Cash

• Deferred Sales Revenue

• Prepaid Rent

• Salaries Expense

Which accounts are reported as shareholder's equity on a balance sheet? Check all that apply.

• Revenue

• Expenses

• Common Stock

• Retained Earnings

Debts that will be satisfied within one year.

• Current Liabilities

• Current Assets

• Long-term Liabilities

• Plant Assets

On December 1, 2024, Sally's Scarfs borrowed $15,000 from a local bank and signed a note. The note requires repayment of principal and 8% interest in six months. What is the amount of accrued interest expense as of December 31, 2024?

• $600

• $100

• $0

• $300

A magazine company offers a one-year subscription for $50 and requires customers to pay the full amount of cash at the beginning of the subscription. For the magazine company, this is an example of a(n):

• Prepaid Expense

• Accrued Expense

• Accrued Revenue

• Deferred Revenue