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 Salaries Payable account is a(n) ________. A) liability account with a normal debit balance B) asset account with a normal debit balance C) liability account with a normal credit balance D) asset account with a normal credit balance ANSWER C
Date: September 2nd, 2020
The accounting period used for the annual financial statements is called the fiscal year. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The goal of the time period concept is to compute an accurate net income or net loss. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
For Retained Earnings, the category of account and its normal balance is ________. A) equity and a credit balance B) assets and a debit balance C) equity and a debit balance D) assets and a credit balance ANSWER A
Date: September 2nd, 2020
For Revenues, the category of account and its normal balance is ________. A) equity and a credit balance B) assets and a debit balance C) assets and a credit balance D) equity and a debit balance ANSWER A
Date: September 2nd, 2020
Which of the following is considered a fiscal year? A) six months B) three months C) twelve months D) four months ANSWER C
Date: September 2nd, 2020
The accounting principle that ensures all expenses are recorded during the period when they are incurred and offsets those expenses against the revenues of the period is called the ________ principle. A) comparison B) accrual C) matching D) revenue recognition ANSWER C
Date: September 2nd, 2020
