Transactions are first record in a ________. A) chart of accounts B) trial balance C) journal D) ledger ANSWER C
Date: September 2nd, 2020
Which of the following entries would be made because of the matching principle? A) Salaries Expense 1,000 Service Revenue 1,000 B) Cash 1,000 Salaries Expense 1,000 C) Salaries Expense 1,000 Salaries Payable 1,000 D) Cash 1,000 Unearned Revenue 1,000 ANSWER C
Date: September 2nd, 2020
An expense that has been incurred but not yet paid is called a(n) ________. A) accrued revenue B) deferred expense C) deferred revenue D) accrued expense ANSWER D
Date: September 2nd, 2020
The Accounts Payable account of Golden, Inc. has the following postings: Calculate the ending balance of the account. A) $12,000 credit B) $18,000 debit C) $18,000 credit D) $5,000 debit ANSWER C
Date: September 2nd, 2020
The revenue recognition principle guides accountants in ________. A) ensuring only revenues received in cash are recorded B) determining when to record expenses C) determining when to record revenues D) ensuring expenses are deducted from revenues ANSWER C
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
