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____ 4. Larken Company\'srecords show the following for the month of January: To

ID: 2458269 • Letter: #

Question

____    4.    Larken Company'srecords show the following for the month of January:

                 Total Retained Earnings at January 1........................................         $400,000

                 Total Retained Earnings at January 31......................................          500,000

                 Total Revenues...........................................................................          670,000

                 Total Dividends Declared...........................................................            40,000

                 Total expenses for January were

                 a.   $740,000.

                 b.   $770,000.

                 c.   $570,000.

                 d.   $530,000.

____    6.    Which of the followingerrors will cause a trial balance to be out of balance? Theentry to record a payment on account was

                 a.   not posted at all.

                 b.   posted as a debit to Cash and a credit to AccountsPayable.

                 c.   posted as a debit to Cash and a debit to AccountsPayable.

                 d.   posted as a debit to Accounts Receivable and acredit to Cash.

Explanation / Answer

1.C    help predict future events. 2. B materiality. ( relevance, reliability, comparability andconsistency are primary and secondary qualitativecharacteristics) 3.B segregation of duties ( verified by a supervisor is dutysegregation. if handled by just one person, stealing ispossible) 4.D 530,000 (   400,000 + 670,000 -40,000-500,000) 5 B 6. C debit to cash and debit to accounts payable. 7 C 8 D 9   C 10. B is a required financial statement.