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 time period concept states that ________. A) financial statements can be prepared for specific periods B) all expenses should be recorded when they are incurred during the period C) companies should record revenue when it has been earned D) expenses incurred during a period should be matched against the revenues of the period ANSWER […]
Date: September 2nd, 2020
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
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
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
