10. conservatism concept directs an entity….

Ans : D

28. Carita began an interest payable account…

Ans : B ($ 10000)

31. Based on Panjim's 2015 cash T-account, which one of the following statements must be true?

Ans : C ($ 75000 debt)

32. Panjim began 2015 with salaries payable balance of $75,000. It had 2015 salary expense of $80,000.
Its 2015 ending salaries payable balance must be:

Ans : B ($ 55000)

37. Panjim's prepaid expense account consists only of garage rental prepayments. Its 2015 beginning
and ending balance were the same. Which one of the following statements must be true?

Ans : D (NOTA)

FA2

13. Planet Music buys all of its inventory on credit. During 2015, Planet Music's inventory account
increased by $10,000. Which of the following statements must be true for Planet Music during 2015?

Ans : C (It made more cash payments..)

35. On April 30, 2015, Zono Electronics, Inc. made a payment of $3,500 to Imperial Distributors, a
supplier. Choose the statement that best describes the recording of this financial transaction by Imperial
Distributors

Ans : D (Debit cash, credit accounts receivable)

FA 3

5. Dana Corporation's accumulated depreciation at December 31, 2014 for reporting purposes and for
tax purposes, respectively, will be

Ans : C ($190,000 and $320,000)

10. In periods with rising prices and increasing quantities of inventories, which of the following
relationships among inventory valuation methods is generally correct:

Ans : B