31.Which of the following accounts is considered a contra account?
a.accumulated depreciation
b.accounts receivable
c.notes payable
d.buildings
32.The cost of fixed assets recognized as being consumed during a fiscal period is recorded as
a.plant expense
b.depreciation expense
c.interest expense
d.cost of goods sold
33.When a company reports depreciation expense on the income statement,
a.it is based on allocations of cost rather than on the current value of the asset
b.the firm is reporting that asset's decline in its current value during the period
c.the shortest possible estimated useful life and lowest possible estimated residual value are usually chosen
d.the company is ignoring the going concern concept
34.Which set of accounts below is correctly listed under the financial statement upon which it is usually reported?
Income Statement Balance Sheet
a.cost of goods sold accounts payable
b.notes receivable owners' investment
c.sales revenue cash paid for expenses
d.interest revenue cost of goods sold
35.Accumulated depreciation is reported
a.on the balance sheet as a liability
b.on the balance sheet as an contra-asset
c.on the income statement as revenues
d.on the income statement as expenses
36.If a firm's depreciation expense doubles, which of the following will decrease (ignore taxes)?
Net Income Cash Flow
a.Yes Yes
b.Yes No
c.No Yes
d.No No
37.When a firm records depreciation expense for the month, which of the following categories will be affected (ignore taxes)?
Net Income Cash Flow
a.Yes Yes
b.Yes No
c.No Yes
d.No No
a.accounts receivable
b.accounts payable
c.inventory
d.all of the above
39.Subsidiary accounts are summarized into
a.income statement accounts
b.other subsidiary accounts
c.control accounts
d.balance sheet accounts
40.A general ledger is a collection of
a.account balances
b.financial statements
c.subsidiary accounts
d.journal entries