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
Which one of the following account groups normally has a debit balance? A) assets and expenses B) revenues and expenses C) liabilities and revenues D) assets and liabilities ANSWER A
Date: September 2nd, 2020
Which of the following entries would be recorded by a company that uses the cash basis method of accounting? A) Cash 1,000 Accounts Receivable 1,000 B) Salaries Expense 1,000 Salaries Payable 1,000 C) Prepaid Rent 1,000 Cash 1,000 D) Rent Expense 1,000 Cash 1,000 ANSWER D
Date: September 2nd, 2020
Which of the following accounts increases with a credit? A) Cash B) Common Stock C) Accounts Receivable D) Prepaid Expense ANSWER B
Date: September 2nd, 2020
Accounts Receivable is a(n) ________ account and has a normal ________ balance. A) liability; debit B) asset; debit C) liability; credit D) asset; credit ANSWER B
Date: September 2nd, 2020
Under cash basis accounting, an expense is recorded only when cash is paid. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
At the time the transaction occurred, which of the following would result in an increase in net income under the accrual basis of accounting, but would not result in an increase in net income under cash basis accounting? A) purchase of supplies for cash B) performance of services on account C) use of supplies purchased […]
Date: September 2nd, 2020
Generally Accepted Accounting Principles (GAAP) require the use of accrual basis of accounting. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Accounts Payable is a(n) ________ account and has a normal ________ balance. A) liability; debit B) asset; debit C) liability; credit D) asset; credit ANSWER C
Date: September 2nd, 2020
