A balance sheet prepared in the report form lists the assets on the left and the liabilities and stockholders’ equity on the right. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
An adjusting entry is completed ________. A) at the beginning of the accounting period B) at the end of the accounting period C) when the balance sheet is prepared D) when accounts need to be balanced in the ledger ANSWER B
Date: September 2nd, 2020
An adjusting entry that credits Salaries Payable is an example of a(n) ________. A) accrued expense B) deferred revenue C) accrued revenue D) deferred expense ANSWER A
Date: September 2nd, 2020
The revenue recognition principle is the basis for recording revenues-both when to record revenue and the amount of revenue to record. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Debits in the journal are always posted as debits in the ledger. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Revenue is earned when the business has ________. A) entered into an agreement with the customer about the goods or services to be delivered B) prepared a journal entry to record revenue C) received cash from the customer before goods or services are delivered D) delivered a good or service to the customer ANSWER D
Date: September 2nd, 2020
In a balance sheet, assets are classified as either current or long term, depending on their liquidity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which of the following entries would be made as the result of the revenue recognition principle? A) Service Expense 1,000 Service Revenue 1,000 B) Accounts Receivable 1,000 Service Revenue 1,000 C) Salaries Expense 1,000 Accounts Payable 1,000 D) Depreciation Expense 1,000 Accumulated Depreciation 1,000 ANSWER B
Date: September 2nd, 2020
Prepaid Rent is always classified as a long-term asset. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The Accounts Receivable account of Rosewood, Inc. has the following postings: Calculate the ending balance of the account. A) $25,000 debit B) $23,000 debit C) $2,000 credit D) $21,000 debit ANSWER D
Date: September 2nd, 2020
