Quiz Solutions

To match expenses against revenues means to ________. A) ad

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 […]

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Date: September 2nd, 2020

The matching principle states that ________. A) financial s

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

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Date: September 2nd, 2020

In reviewing the T-account for Accounts Payable, you find th

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

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Date: September 2nd, 2020

List the order in which the balance sheet, statement of reta

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 […]

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Date: September 2nd, 2020

Revenue is earned when the business has ________. A) entere

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

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Date: September 2nd, 2020

Which of the following entries would be made as the result o

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

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Date: September 2nd, 2020