31 which of the following accounts is considered a contra account a accumulated depr 4352216

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

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