1. An Illinois consulting rm had accounts receivable of $70,000 on December 31, 2015. During year 2016, the consulting rm collected $30,000 in fees from its clients. On December 31, 2016, it had accounts receivable of $100,000. On an accrual basis, what was the consulting rm's revenue for the year 2016? $40,000 $60,000 $130,000 $100,000
1 point
2. People magazine sells annual subscriptions. The magazine subscription fees are collected in advance and had a balance of $ 5,000,000 on December 31, 2015. The magazine received $3,500,000 in cash from subscribers in year 2016. Also, magazine subscription revenue reached $6,000,000 in the same year. How much should People magazine report as the balance for magazine subscriptions collected in advance (i.e., unearned revenue) in its December 31, 2016 balance sheet? $5,500,000 $8,500,000
$9,000,000 $2,500,000
1 point
3. Champaign LLC paid $15,000 to renew its insurance policy for ve years on March 1, 2016, the eective start date of the policy. What amounts should be reported for prepaid insurance and insurance expenses in Champaign LLC 's nancial statements for the month ending on March 31, 2016?
Prepaid Insurance
Insurance Expense
$15,000
$3000
Prepaid Insurance
Insurance Expense
$15,000
$250
Prepaid Insurance
Insurance Expense
$14,750
$250
Prepaid Insurance
Insurance Expense
$14,750
$0
1 point
4. On December 31, 2016, Divers LLC provided diving instructions to 30
On December 31, 2016, Divers LLC provided diving instructions to 30
customers who will be paying $1,000 each in January 2017. What should Divers LLC record in its 2016 balance sheet for this transaction? Accounts receivable Accounts payable Unearned Revenue Prepaid expense
1 point
5. GE borrows $3,000,000 at 10% annual interest rate from Chase bank on March 31, 2016. Annual interest is payable on March 31 for the next ve years. How much should GE record as interest payable on December 31, 2016? $300,000 $0 $225,000 $3,000,000
1 point
6. A rm rented a basement space to a retail shop for $900 per month. The retail shop did not pay the rent for November and December 2016 and plans to make a payment for these two months on January 25, 2017. How much accounts receivable should the rm record in its December 31, 2016 balance sheet? $10,800 $900 $0
$0 $1800
1 point
7. Illini Supermarket pays $6,000 for a 2-year insurance policy on June 30, 2016. Insurance coverage begins on July 1, 2016. How much should the company record as prepaid insurance on its December 31, 2016 balance sheet? $0 $4,500 $6,000 $3,000
1 point
8. A retail store collects 6 months rent in advance in the amount of $18,000 on October 1, 2016. How much unearned revenue should the retail store record in its balance sheet on December 31, 2016 as a result of this transaction? $18,000 $0 $9,000 $12,000
1 point
9. Which accounting principle dictates using accounting rules that will result in
Which accounting principle dictates using accounting rules that will result in less revenues/assets, or higher liability when choosing among acceptable accounting rules? Going concern Consistency Conservatism Matching
1 point
10. Changing accounting principles every year violates the __________principle. Consistency Matching Going concern Conservatism
I, Rakesh Kumar, understand that submitting work that isnt my own
may result in permanent failure of this course or deactivation of my Coursera account.Learn more about Courseras Honor Code
