GB 518 RANK Extraordinary Life/gb518rank.com GB 518 RANK Extraordinary Life/gb518rank.com | Page 8

Question 17. Question: Which of the following statements is incorrect?
An income statement reports revenues earned less expenses incurred
An unadjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments
Interim financial reports can be based on one-month or three-month accounting periods
Property, 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

Question 16. Question:

Based on the following

information, what would be the beginning balance in the

Retained Earnings Account, assuming all accounts have a

normal balance?

Cash

$ 6,754

Dividends

$ 2,000

Accounts receivable

$ 13,733

Consulting fees earned

$ 13,718 Office supplies

$ 2,625

Rent expense $ 3,673

Land $ 37,153

Salaries expense

$ 6,642

Office equipment

$ 14,535

Telephone expense

$

560

Accounts payable

$ 6,463

Miscellaneous expense

$ 280

Common stock

$ 54,490

Retained Earnings

?

Question 17. Question: Which of the following statements is incorrect?

An income statement reports revenues earned less expenses incurred

An unadjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments

Interim financial reports can be based on one-month or three-month accounting periods

Property, 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