GB 518 RANK Career Path Begins/gb518rank.com GB 518 RANK Career Path Begins/gb518rank.com | Page 6

Office supplies
Land $ 37,153
Office equipment
560
Accounts payable
$ 280
Common stock

$ 2,625
Rent expense $ 3,673
Salaries expense
$ 6,642
$ 14,535
Telephone expense
$
$ 6,463

Miscellaneous expense

$ 54,490

Retained Earnings

?

Question 17. Question :
Which of the following
statements is incorrect?
An income statement reports revenues earned less expenses
incurredAn unadjusted trial balance shows the account balances
after they have been revised to reflect the effects of end-ofperiod adjustmentsInterim financial reports can be based on onemonth or three-month accounting periodsProperty, plant and
equipment are referred to as plant assets
Question 18. Question :
On January 1, Able Company
purchased equipment costing $135,000 with an estimated
salvage value of $10,500, and an estimated useful life of five
years. What is the amount that should be recorded as
depreciation on December 31?
Question 19. Question :
A classified balance sheet:
Measures a company's ability to pay its bills on time
Organizes assets and liabilities into important subgroups
Presents revenues, expenses and net income
Reports operating, investing and financing activities
Reports the effect of profit and dividends on retained earnings
Question 20. Question :
The special account used only in
the closing process to temporarily hold the amounts of revenues
and expenses before the net difference is added to (or subtracted
from) the retained earnings account is the: