Question 1

The Dividend account is known as which of the following?

Accepted Answer

A)  Nominal account 
B)  Closing account 
C)  Real account 
D)  both b and c 
A)  Nominal account 
B)  Closing account 
C)  Real account 
D)  both b and c

Question 2

The revenue recognition principle does not pertain to long-term contracts, franchises, commodities, and installment sales.

Accepted Answer

A) True 
 B)False

Question 3

From the list of accounts below, determine whether the account would be a nominal account or a real account.
-Prepaid Rent

Accepted Answer

A)  nominal account 
B)  real account 
A)  nominal account 
B)  real account

Question 4

Stockton Co.received advance payments from customers during 2017 of $6,000.At December 31, 2016, $1,300 of the advance payments still had not been earned.After the adjustments are recorded and posted at December 31, 2016, what will the balances be in the Unearned Book Revenue and Book Revenue accounts? $\begin{array}{lc}
\underline{\text { Unearned Book Revenue }}& \underline{\text { Book Revenue}} \
\text { a. } \$ 1,300 & \$ 6,000 \
\text { b. } \$ 1,300 & \$ 4,700 \
\text { c. } \$ 6,000 & \$ 1,300 \
\text { d. None of these choices}
\end{array}$

Accepted Answer

The answer of Stockton Co.received advance payments from customers during...

Question 5

All of the following statements are true regarding the use of a work sheet at the end of an accounting period except:

Accepted Answer

A)  all companies use a ten-column work sheet. 
B)  the net income of the period is extended from the income statement debit column to the balance sheet credit column. 
C)  the beginning balance in the Retained Earnings account is entered initially on the work sheet on the unadjusted trial balance. 
D)  cash is always carried over from the unadjusted trial balance columns of the work sheet to the balance sheet columns without any adjustment. 
A)  all companies use a ten-column work sheet. 
B)  the net income of the period is extended from the income statement debit column to the balance sheet credit column. 
C)  the beginning balance in the Retained Earnings account is entered initially on the work sheet on the unadjusted trial balance. 
D)  cash is always carried over from the unadjusted trial balance columns of the work sheet to the balance sheet columns without any adjustment.

Question 6

When using a work sheet:

Accepted Answer

A)  an equal number of account titles are applicable to the Income Statement columns and the Balance Sheet columns. 
B)  adjusting entries are not made since they appear on the work sheet. 
C)  net income appears in both the Income Statement debit column and the Balance Sheet credit column. 
D)  the Income Statement column and Balance Sheet column of the work sheet eliminate the need to prepare formal financial statements. 
A)  an equal number of account titles are applicable to the Income Statement columns and the Balance Sheet columns. 
B)  adjusting entries are not made since they appear on the work sheet. 
C)  net income appears in both the Income Statement debit column and the Balance Sheet credit column. 
D)  the Income Statement column and Balance Sheet column of the work sheet eliminate the need to prepare formal financial statements.

Question 7

Expenses can be matched against revenue

Accepted Answer

A)  if the earnings process is not complete. 
B)  when cash is collected from the sale of products. 
C)  through allocation to the accounting periods in which the benefits are recognized. 
D)  when payment is made for costs related to revenue. 
A)  if the earnings process is not complete. 
B)  when cash is collected from the sale of products. 
C)  through allocation to the accounting periods in which the benefits are recognized. 
D)  when payment is made for costs related to revenue.

Question 8

On December 1, 2016, Vonn Corporation paid $8,000 rent in advance.The rent per month is $1,000.If Hazel's accounting period ends on December 31, 2016, what will be reported on the financial statements?

Accepted Answer

A)  Prepaid Rent of $7,000 on its balance sheet at December 31, 2016 
B)  Prepaid Rent of $8,000 on its balance sheet at December 31, 2016 
C)  Rent Expense of $8,000 on its 2016 income statement 
D)  Rent Revenue of $7,000 on its 2016 income statement 
A)  Prepaid Rent of $7,000 on its balance sheet at December 31, 2016 
B)  Prepaid Rent of $8,000 on its balance sheet at December 31, 2016 
C)  Rent Expense of $8,000 on its 2016 income statement 
D)  Rent Revenue of $7,000 on its 2016 income statement

Question 9

A hospital corporation contracted with a private company to collect fees and maintain health facilities that adjoin their property.Users of the health facility can pay cash of $10 for a daily visit or they can purchase a pass.The pass has a magnetic strip that is swiped through the entrance device each time an individual enters the facility.This subtracts daily fee from the pass balance for each day used.The passes are issued for a fee of $365, which are good for 365 days.Refunds are not issued on the pass.Last year $18,650 was collected for daily visits, $438,000 of annual passes were issued, and $206,225 of pass usage was registered on the scanning equipment.How much should the company recognize as revenue for the year? Explain how the revenue recognition rule should be applied in this case.

Accepted Answer

@#IMG-DLM& ​
Only the amount of passes that have b

Question 10

The income statement tells the reader about the actual cash inflows during a period of time.

Accepted Answer

A) True 
 B)False

Question 11

There is one single format for a work sheet.

Accepted Answer

A) True 
 B)False

Question 12

Which one of the following is an example of a deferred revenue?

Accepted Answer

A)  Sales are made to customers on credit. 
B)  Interest has been earned by a bank deposit, but it has not been recorded. 
C)  Cash is received prior to providing the services to customers. 
D)  Cash sales are made to customers. 
A)  Sales are made to customers on credit. 
B)  Interest has been earned by a bank deposit, but it has not been recorded. 
C)  Cash is received prior to providing the services to customers. 
D)  Cash sales are made to customers.

Question 13

An asset is always involved when revenue is recognized.

Accepted Answer

A) True 
 B)False

Question 14

From the list of accounts below, determine whether the account would be a nominal account or a real account.
-Interest Payable

Accepted Answer

A)  nominal account 
B)  real account 
A)  nominal account 
B)  real account

Question 15

All of the following describe a revenue except:

Accepted Answer

A)  A revenue can result in the inflow of assets. 
B)  A revenue can result in the settlement of liabilities from the delivery or distribution of goods. 
C)  A revenue can result in the settlement of liabilities from rendering services. 
D)  A revenue must involve an inflow of assets. 
A)  A revenue can result in the inflow of assets. 
B)  A revenue can result in the settlement of liabilities from the delivery or distribution of goods. 
C)  A revenue can result in the settlement of liabilities from rendering services. 
D)  A revenue must involve an inflow of assets.

Question 16

____________________ is the association of the costs incurred with the associated revenue of a period.

Accepted Answer

The answer of ____________________ is the association of the costs...

Question 17

For each transaction select the letter of the type of adjustment that would be required
-The cost of supplies used during the current year is determined and recorded

Accepted Answer

A) Deferred expense 
B) Deferred revenue 
C) Accrued liability 
D) Accrued asset 
A) Deferred expense 
B) Deferred revenue 
C) Accrued liability 
D) Accrued asset

Question 18

Adjustments are necessary only if

Accepted Answer

A)  the cash basis of accounting is used for all accounting periods. 
B)  cash receipts and payments occur before or after the point in time when revenues and expenses should be recognized under the accrual basis of accounting. 
C)  management reports its adjustments on the statement of cash flows. 
D)  the company reports revenue in the same period cash is collected. 
A)  the cash basis of accounting is used for all accounting periods. 
B)  cash receipts and payments occur before or after the point in time when revenues and expenses should be recognized under the accrual basis of accounting. 
C)  management reports its adjustments on the statement of cash flows. 
D)  the company reports revenue in the same period cash is collected.

Question 19

Which of the following is the attribute used to measure many assets that are recognized on a balance sheet, because it is more objective and verifiable?

Accepted Answer

A)  Market value 
B)  Historical cost 
C)  Liquidation value 
D)  Current replacement cost 
A)  Market value 
B)  Historical cost 
C)  Liquidation value 
D)  Current replacement cost

Question 20

Adjustments are recorded for all transactions involving outside entities.

Accepted Answer

A) True 
 B)False

The Dividend account is known as which of the following?

The revenue recognition principle does not pertain to long-term contracts, franchises, commodities, and installment sales.

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Prepaid Rent

All of the following statements are true regarding the use of a work sheet at the end of an accounting period except:

When using a work sheet:

Expenses can be matched against revenue

On December 1, 2016, Vonn Corporation paid $8,000 rent in advance.The rent per month is $1,000.If Hazel's accounting period ends on December 31, 2016, what will be reported on the financial statements?

The income statement tells the reader about the actual cash inflows during a period of time.

There is one single format for a work sheet.

Which one of the following is an example of a deferred revenue?

An asset is always involved when revenue is recognized.

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Interest Payable

All of the following describe a revenue except:

____________________ is the association of the costs incurred with the associated revenue of a period.

For each transaction select the letter of the type of adjustment that would be required -The cost of supplies used during the current year is determined and recorded

Adjustments are necessary only if

Which of the following is the attribute used to measure many assets that are recognized on a balance sheet, because it is more objective and verifiable?

Adjustments are recorded for all transactions involving outside entities.

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

The Dividend account is known as which of the following?

The revenue recognition principle does not pertain to long-term contracts, franchises, commodities, and installment sales.

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Prepaid Rent

All of the following statements are true regarding the use of a work sheet at the end of an accounting period except:

When using a work sheet:

Expenses can be matched against revenue

On December 1, 2016, Vonn Corporation paid $8,000 rent in advance.The rent per month is $1,000.If Hazel's accounting period ends on December 31, 2016, what will be reported on the financial statements?

The income statement tells the reader about the actual cash inflows during a period of time.

There is one single format for a work sheet.

Which one of the following is an example of a deferred revenue?

An asset is always involved when revenue is recognized.

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Interest Payable

All of the following describe a revenue except:

____________________ is the association of the costs incurred with the associated revenue of a period.

For each transaction select the letter of the type of adjustment that would be required -The cost of supplies used during the current year is determined and recorded

Adjustments are necessary only if

Which of the following is the attribute used to measure many assets that are recognized on a balance sheet, because it is more objective and verifiable?

Adjustments are recorded for all transactions involving outside entities.

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