Quiz
ABM2240-Ch4 Accrual Accounting Concepts
Fragen in diesem Quiz (5)
1Which one of these statements about the accrual basis of accounting is FALSE?
- AThis basis is in accord with generally accepted accounting principles.
- BCompanies record revenue only when they receive cash, and record expense only when they pay out cash
- CCompanies recognize revenue in the period in which the performance obligation is satisfied.
- DCompanies record events that change their financial statements in the period in which events occur, even if cash was not exchanged.
2What is the periodicity assumption?
- AThe economic life of a business can be divided into artificial time periods.
- BThe fiscal year should correspond with the calendar year.
- CCompanies should match expenses with revenues.
- DCompanies should recognize revenue in the accounting period in which it is earned.
3Adjusting entries are made to ensure that?
- Abalance sheet and income statement accounts have correct balances at the end of an accounting period.
- BAll of the above.
- Crevenues are recognized in the period in which the performance obligation is satisfied.
- Dexpenses are recognized in the period in which they are incurred.
4What are Accruals?
- AUnearned revenues
- BPrepaid expenses
- CAccrued expenses
- DAccrued revenues
5Which of the following statements is incorrect concerning the adjusted trial balance?
- AAn adjusted trial balance proves the equality of the total debit balances and the total credit balances in the ledger after all adjustments are made.
- BThe adjusted trial balance provides the primary basis for the preparation of financial statements.
- CThe adjusted trial balance lists the account balances segregated by assets and liabilities.
- DThe adjusted trial balance is prepared after the adjusting entries have been journalized and posted.
Informationen
- Beschreibung
- Accrual Accounting Concepts
- Autor
- Tavauna Clark
- Sprache
- English
- Aufrufe
- 47
- Schlagwörter
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