A balance sheet prepared in the account form lists the assets at the top and the liabilities and stockholders’ equity below. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Adjusting entries are needed to correctly measure the ________. A) ending balance in the Cash account B) net income (loss) on the balance sheet C) net income (loss) on the income statement D) beginning balance in the Cash account ANSWER C
Date: September 2nd, 2020
When a business collects cash, the Cash account is debited. Indicate whether the statement is true or false ANSWER TRUE
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
To match expenses against revenues means to ________. A) add expenses incurred during one period from revenues earned during that same period B) subtract expenses incurred during one period from revenues earned during the previous period C) add expenses incurred during one period from revenues earned during the previous period D) subtract expenses incurred during […]
Date: September 2nd, 2020
The matching principle states that ________. A) financial statements can be prepared for specific periods B) a business’s activities can be sliced into small time segments C) all expenses should be recorded when they are incurred during the period D) companies should record revenue when it has been earned ANSWER C
Date: September 2nd, 2020
In reviewing the T-account for Accounts Payable, you find that the beginning balance is zero, the total increases are $7,200 and the total decreases are $4,000. This means that the ending balance of the account is a credit balance of $3,200. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
List the order in which the balance sheet, statement of retained earnings, and income statement are prepared. Briefly discuss why this order is necessary. What will be an ideal response ANSWER The order in which these statements are prepared is income statement, statement of retained earnings, and balance sheet. The income statement is prepared first […]
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
