Question 1

Financial statements should be prepared before any adjustments are made.

Accepted Answer

A) True 
 B)False

Question 2

The ____________________ principle attempts to associate with the revenue of the period, all costs necessary to generate that revenue.

Accepted Answer

The answer of The ____________________ principle attempts to associate with...

Question 3

Which of the following adjusting entries involves the cash account?

Accepted Answer

A)  Deferred Revenue 
B)  Accrued Asset 
C)  Deferred Liability 
D)  None of the Above 
A)  Deferred Revenue 
B)  Accrued Asset 
C)  Deferred Liability 
D)  None of the Above

Question 4

The amount in the Dividends account should be carried over from the adjusted trial balance of the 10-column work sheet to which of the following columns?

Accepted Answer

A)  Income statement as a debit 
B)  Income statement as a credit 
C)  Balance sheet as a debit 
D)  Balance sheet as a credit 
A)  Income statement as a debit 
B)  Income statement as a credit 
C)  Balance sheet as a debit 
D)  Balance sheet as a credit

Question 5

A pool cleaning service signs a contract with a new customer on May 1.The pool is vacuumed and "shocked" for the customer on June 1, and the bill for the services is paid on July 1.Under the accrual basis, the business should recognize revenue on:

Accepted Answer

A)  December 31 
B)  July 1 
C)  June 1 
D)  May 1 
A)  December 31 
B)  July 1 
C)  June 1 
D)  May 1

Question 6

When are revenues and expenses recognized in the same accounting period that cash receipts and payments occur?

Accepted Answer

A)  Under the cash basis of accounting 
B)  Under the accrual basis of accounting 
C)  Under the adjusting method of accounting 
D)  Under both the cash and accrual bases of accounting 
A)  Under the cash basis of accounting 
B)  Under the accrual basis of accounting 
C)  Under the adjusting method of accounting 
D)  Under both the cash and accrual bases of accounting

Question 7

An adjusting entry could not consist of:

Accepted Answer

A)  A debit to a liability and a credit to revenue. 
B)  A debit to an expense and a credit to a liability. 
C)  A debit to an expense and a credit to an asset. 
D)  A debit to an expense and a credit to revenue. 
A)  A debit to a liability and a credit to revenue. 
B)  A debit to an expense and a credit to a liability. 
C)  A debit to an expense and a credit to an asset. 
D)  A debit to an expense and a credit to revenue.

Question 8

Expenses originate from

Accepted Answer

A)  using an asset or recognizing liabilities. 
B)  incurring liabilities or providing services to customers. 
C)  collecting cash from customers. 
D)  paying off liabilities. 
A)  using an asset or recognizing liabilities. 
B)  incurring liabilities or providing services to customers. 
C)  collecting cash from customers. 
D)  paying off liabilities.

Question 9

Deacon Company purchased equipment last year for $30,000.The equipment has an estimated useful life of five years.What amount will appear on the income statement for depreciation expense for the month of March 2016?​

Accepted Answer

A)  $0 
B)  $500 
C)  $6,000 
D)  $30,000 
A)  $0 
B)  $500 
C)  $6,000 
D)  $30,000

Question 10

Match the most probable matching method to the costs listed below.
-Commissions earned by sales people

Accepted Answer

A) Directly match a specific revenue. 
B) Indirectly match with the period during which it will provide revenue. 
C) Immediately recognize because no future benefits are expected. 
A) Directly match a specific revenue. 
B) Indirectly match with the period during which it will provide revenue. 
C) Immediately recognize because no future benefits are expected.

Financial statements should be prepared before any adjustments are made.

The ____________________ principle attempts to associate with the revenue of the period, all costs necessary to generate that revenue.

Which of the following adjusting entries involves the cash account?

The amount in the Dividends account should be carried over from the adjusted trial balance of the 10-column work sheet to which of the following columns?

A pool cleaning service signs a contract with a new customer on May 1.The pool is vacuumed and "shocked" for the customer on June 1, and the bill for the services is paid on July 1.Under the accrual basis, the business should recognize revenue on:

When are revenues and expenses recognized in the same accounting period that cash receipts and payments occur?

An adjusting entry could not consist of:

Expenses originate from

Deacon Company purchased equipment last year for $30,000.The equipment has an estimated useful life of five years.What amount will appear on the income statement for depreciation expense for the month of March 2016?

Match the most probable matching method to the costs listed below. -Commissions earned by sales people

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant and Equipment, and Intangibles

Current Liabilities, Contingencies, and the True Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters

Exam 4: Income Measurement and Accrual Accounting

Financial statements should be prepared before any adjustments are made.

The ____________________ principle attempts to associate with the revenue of the period, all costs necessary to generate that revenue.

Which of the following adjusting entries involves the cash account?

The amount in the Dividends account should be carried over from the adjusted trial balance of the 10-column work sheet to which of the following columns?

A pool cleaning service signs a contract with a new customer on May 1.The pool is vacuumed and "shocked" for the customer on June 1, and the bill for the services is paid on July 1.Under the accrual basis, the business should recognize revenue on:

When are revenues and expenses recognized in the same accounting period that cash receipts and payments occur?

An adjusting entry could not consist of:

Expenses originate from

Deacon Company purchased equipment last year for $30,000.The equipment has an estimated useful life of five years.What amount will appear on the income statement for depreciation expense for the month of March 2016?​

Match the most probable matching method to the costs listed below. -Commissions earned by sales people

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant and Equipment, and Intangibles

Current Liabilities, Contingencies, and the True Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters

Deacon Company purchased equipment last year for $30,000.The equipment has an estimated useful life of five years.What amount will appear on the income statement for depreciation expense for the month of March 2016?