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Chapter 3: Measuring Business Income: Adjusting the Accounts

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ACC 101 Study - Chapter 3

ACC 101 Study - Chapter 3

Question 1 of 9

1

Revenue/Gains = ____________ in cash.

Select one of the following:

  • increases

  • decreases

  • no changes/effect

Explanation

Question 2 of 9

1

Which system of accounting is used in GAAP?

Select one of the following:

  • Cash Method

  • Accrual Method

  • Neither Method

Explanation

Question 3 of 9

1

In the Cash method system of accounting, decreases/losses = _____________ in cash

Select one of the following:

  • increases

  • decreases

  • no changes

Explanation

Question 4 of 9

1

In the Accrual Method system of accounting, revenues/gains are recognized when _____________________________

Select one of the following:

  • earned and measurable

  • incurred

  • not recognized

Explanation

Question 5 of 9

1

Using the Accrual method, expenses/losses are recognized when _______________.

Select one of the following:

  • incurred

  • earned and measurable

  • not recognized

Explanation

Question 6 of 9

1

Expenditure is _________________________

Select one of the following:

  • funds saved

  • funds spent

  • no effect on funds

Explanation

Question 7 of 9

1

Expense is a _______________ of earnings on the Income Statement

Select one of the following:

  • increase

  • reduction

  • no effect

Explanation

Question 8 of 9

1

Expenditure ________________ equal(s) expense

Select one of the following:

  • always

  • doesn't always

Explanation

Question 9 of 9

1

We record a journal entry because there has been either:

Select one of the following:

  • An accounting event

  • A required adjustment

  • Closing of temporary accounts at the end of the accounting period

  • All of the above

  • None of the above

Explanation

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