All assets that will not be converted to cash or used up within the business’s operating cycle or one year, whichever is greater, are called ________. A) long-term assets B) fully depreciated assets C) current assets D) current liabilities ANSWER A
Date: September 2nd, 2020
A compound journal entry has more than two accounts, but the total dollar value of the debits still must equal total dollar value of the credits. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Journalizing a transaction involves ________. A) calculating the balance in an account using journal entries B) posting the account balances in the chart of accounts C) preparing a summary of account balances D) recording the data only in the journal ANSWER D
Date: September 2nd, 2020
Which of the following accounts would be used under the accrual basis of accounting, but not under cash basis accounting? A) Cash B) Unearned Revenue C) Service Revenue D) Salaries Expense ANSWER B
Date: September 2nd, 2020
Which of the following assumes that financial statements of a business can be prepared for specific periods? A) matching principle B) revenue recognition principle C) time period concept D) adjusting entry principle ANSWER C
Date: September 2nd, 2020
Which of the following accounting elements does the matching principle help to match? A) revenues and liabilities B) expenses and assets C) expenses and revenues D) expenses and liabilities ANSWER C
Date: September 2nd, 2020
Source documents provide the evidence and data for accounting transactions. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which of the following is a source document that provides the evidence and data for accounting transactions? A) Journal B) Sales invoice C) Ledger D) Trial balance ANSWER B
Date: September 2nd, 2020
The matching principle is also called the ________. A) adjusting entry concept B) revenue recognition principle C) expense recognition principle D) time period concept ANSWER C
Date: September 2nd, 2020
The process of transferring data from the ledger to the journal is called posting. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
