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
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
