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