Test
CH 3
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Preguntas del test (66)
1What type of account occurs when cash is received AT THE SAME TIME when revenue is recognized for the Revenue recognition principle?
- ACash - Debited
Unearned Receivable - Credited - BAccounts receivable - Debited
Sales Revenue - Credited - CCash - Debited
Sales Revenue - Credited
- ACash - Debited
2What type of account occurs when cash is received AFTER when revenue is recognized for the Revenue recognition principle?
- AAccounts receivable - Debited
Sales Revenue - Credited - BCash - Debited
Unearned Revenue - Credited - CCash - Debited
Sales Revenue - Credited
- AAccounts receivable - Debited
3What type of account occurs when cash is received BEFORE when revenue is recognized for the Revenue recognition principle?
- ACash - Debited
Sales Revenue - Credited - BAccounts Receivable - Debited
Sales Revenue - Credited - CCash - Debited
Unearned revenue - Credited
- ACash - Debited
4Accrual basis is when Revenue is ONLY recognized when cash is received
- AVerdadero
- BFalso
5What are the 5 criteria's that need to be met in accrual accounting?
- APrice is certain
- BIdentify specific performance obligation
- CAllocate transaction price to performance obligation
- DRevenue is recognized at point when performance obligation is satisfied
- ESpecific contract is identified
6Revenue is recognized as the amount of the seller expects to be paid for the transferred goods or services
- AExpense recognition
- BRevenue Recognition
7Expenses incurred to generate revenue are recognized (matched) in the same time period as revenue
- ARevenue recognition
- BExpense recognition
8What happens when you recognize revenue to early?
- AOverstate sales and S/Equity
- BUnderstate sales and S/Equity
- CNothing happens
9What happens when you recognize expenses to early?
- AOverstate expenses, revenue, and S/Equity
- BUnderstate expenses, overstate Revenue and S/Equity
- CUnderstate expenses, revenue, and S/Equity
- DOverstate Expenses, understate revenue and S/Equity
10Which is a primary principle underlying the accrual accounting?
- AMateriality
- BCash flows
- CIncome statement
- DRevenue recognition
11An amount previously recorded in an account
- Aaccruals
- BDeferrals
12An amount not yet recorded in an account
- AAccruals
- BDeferral
13Which ones are deferrals
- AAccrued expenses
- BUnearned revenue
- CPrepaid Expenses
- DAccrued revenues
14Which ones are accrual
- APrepaid expenses
- BAccrued expenses
- CUnearned revenue
- DAccrued revenues
15Allocating previously recorded assets to expense
- AUnearned revenue
- BPrepaid expenses
- CAccrued revenues
- DAccrued expenses
16Allocating previously recorded unearned revenue to earned revenue
- AUnearned revenue
- BAccrued expenses
- CPrepaid expenses
- DAccrued revenues
17Recording operating expenses that have not yet been paid or recorded
- AUnearned revenues
- BPrepaid expenses
- CAccrued expenses
- DAccrued revenues
18Recording revenue that has been earned, but not yet been received or recorded
- APrepaid expenses
- BUnearned Revenue
- CAccrued expenses
- DAccrued revenues
19What other assets would be handles the same way as this example given for "allocating previously recorded assets to expenses":
Mikes Bikes determined the end-of-the-year merchandise inventory to be $500. This represents the amount of $3,000 purchase that has not been used up. to generate December Sales
Cost of goods sold - $2,500 (Debited)
Merch. inventory - $2,500 (Credited)- APrepaid insurance, rent depreciation, supplied purchased in advance
- BRent and depreciation
- CPrepaid insurance, supplied purchased in advance, depreciation
- DRent and supplies purchased in advance
20What is the balance for "allocating previosuly recorded assets to expenses" in this example:
Mike's bikes prepaid one year of its $500 per month building rent at the end of November- ARent Expense - Debited
Prepaid rent - Credited - BPrepaid rent - Debited
Rent Expense - Credited
- ARent Expense - Debited
21"Accumulated Depreciation" is a contra account to Equipment, which means it gets Debited
- AVerdadero
- BFalso
22"Depreciation Expense" is an expense account that gets debited
- AVerdadero
- BFalso
23When cash is received before it is earned, the liability account "Unearned Revenue" is Debited
- AVerdadero
- BFalso
24When revenue is earned, the "unearned revenue" is debited an "Earned Revenue" is credited
- AVerdadero
- BFalso
25Interest payable IS recorded at the beginning because NO INTEREST had been accrued yet
- AVerdadero
- BFalso
26The following is not a type of accrual adjustment
- AAccrued expenses
- Bprepaid expenses
- CCommon stock
- DUnearned revenue
27What order is correct for preparing a financial statement
- AStatement of Stockholders' Equity
Income statement
Statement of Cash Flows - BStatement of Cash flows
Balance Sheet
Statement of Stockholders' Equity
Income statement - CBalance sheet
Statement of cash flows
Income statement
Statement of Stockholders' Equity - DIncome statement
Statement of Stockholders' Equity
Balance sheet
Statement of Cash Flows
- AStatement of Stockholders' Equity
28Accounts whose balances carry over from one accounting period to the next
- ATemporary
- BPermanent
29Accounts used to gather info for a particular accounting period and then reset to zero by transferring the balance to a permanent account ( Retained Earnings)
- APermanent
- BTemporary
30Temporary accounts are on the balance sheet
- AVerdadero
- BFalso
31Permanent accounts
- AAssets
- BExpenses
- CLiabilties
- DRevenues
- EDividends
- FCommon Stock
- GIncome summary
- HRetained Earnings
32Temporary accounts
- ARevenues
- BLiabilities
- CAssets
- DExpenses
- EDividends
- FCommon Stock
- GIncome Summary
- HRetained Earnings
33A post-closing trial balance is prepared once the temporary accounts have been closed to Retained Earnings
- AVerdadero
- BFalso
34The following is a true statement regarding the closing process
- ADividends are closed to retained earnings by crediting retained earnings
- BRevenues are closed to retained earnings by crediting retained earnings
- CExpenses are closed to retained earnings by crediting retained earnings
- DRevenues are closed to retained earnings by debiting retained earnings
35On December 15, 2016, A company receives an order from a customer for services to be performed on Dec 28, 2016. Due to backlog of orders, the company does not perform until January 3, 2017. The customer pays for the services on January 6, 2017. When should revenue be recorded by the company?
- ADecember 15, 2016
- BJanuary 3, 2017
- CDecember 28, 2016
- DJanuary 6, 2017
36On October 25, 2017, Quick Corp. prints a cheque for November's rent. Check gets mailed on October 27 to the landlord. Landlord receives the cheque on October 31 and cashes it on November 2. When should Quick Corp record the rent expense associated with this transaction?
- AOctober 25, 2017
- BOctober 27, 2017
- CNovember 30, 2017
- DNovember 2, 2017
37Adjusting enteries
- Aare prepared at the option of the accountant
- Bnot needed under the accrual basis of accounting
- Cprepared at the beginning of the accounting period to update all accounts
- Dprepared at the end of the accounting period to update certain accounts
38An adjustment of an asset for which the business paid cash in advance is
- ADeferral
- BAccrual
- CUnearned revenue
- DRevenue recognition
39On September 1 of the current year, Prepaid rent was debited for $3,000. Amount represents payment for one year of rent, paid in advance. The adjusting entry on Dec. 31 will involve
- ADebit to Rent Expense for $2,000
- BDebit to Rent Expense for $1,000
- CDebit to Rent Payable for $2,000
- DDebit to Rent Payable for $1,000
40On December 31, 2017 salaries owed to employees total $5,650 and will be paid January 4, 2014. Adjusting period for December 31, 2017 is
- ADebit to Salary Expense for $5,650
- BDebit to Salary Payable for $5,650
- CCredit to cash for $5,650
- DCredit to Salary Expense for $5,650
41Unearned revenue is
- Arevenue account
- Bexpense account
- Casset account
- Dliability account
42The adjusting entry to record salaries owed to employees but not paid until the next accounting period involves a credit to
- ASalaries Expense
- BUnearned Salaries
- CSalary Payable
- DDeferred Salary
43Journal entry contains a debit to an expense and a credit to a payable account. This is
- AAccrued revenue
- BAccrued expense
- Cdeferred revenue
- Ddeferred expense
44Which is not a "permanent account"
- AInventory
- BRent Expense
- CAccounts Payable
- DCommon Shares
45Closing entry made for dividends would include
- Adebit to dividends and credit to net income
- Bdebit to retained earnings and credit to dividends
- Cdebit to net income and credit to dividends
- Ddebit to dividends and credit to retained earnings
46Estimated the monthly utilities bill and recorded the expense
- ADeferral
- Baccrual
47Unearned revenue had been earned by the end of the month
- ADeferral
- BAccrual
48Recorded monthly depreciation on the office equipment
- ADeferral
- BAccrual
49Recorded salaries owed to employees at the end of the month but not paid until early next month
- AAccrual
- BDeferral
50Recorded interest earned on a note receivable but not yet collected
- AAccrual
- BDeferral
51If prepaid rent has expired during the current period and no adjustment has been made, net income for the current period will be overstated
- AVerdadero
- BFalso
52An accrued expense is one that has been incurred but not yet paid
- AVerdadero
- BFalso
53Prepaid rent is an example of a contra account, used to record a reduction to its related account, rent expense
- AVerdadero
- BFalso
54The purpose of an unadjusted trial balance is to be sure the general ledger is in balance
- AVerdadero
- BFalso
55The book value of a building is equivalent to its historical cost
- AVerdadero
- BFalso
56Adjusting unearned revenues causes a liability to decline
- AVerdadero
- BFalso
57The trial balance prepared before the general ledger accounts are adjusted is called an adjusted trial balance
- AVerdadero
- BFalso
58An unadjusted trial balance shows the general ledger account balances before any adjustments have been made
- AVerdadero
- BFalso
59The adjusted trial balance includes only accounts whose balances are changed by adjustments
- AVerdadero
- BFalso
60permanent accounts are the accounts presented in the balance sheet
- AVerdadero
- BFalso
61Temporary accounts for a corporation consist of revenue, expense, and retained earnings
- AVerdadero
- BFalso
62Adjusting entries must be journalized and posted before closing entries may be prepared
- AVerdadero
- BFalso
63An account is closed at year-end when an entry changes its balance to 0
- AVerdadero
- BFalso
64At the end of the accounting period, the dividends account is closed to the Income Summary Account
- AVerdadero
- BFalso
65The post-closing trial balance includes on balance sheet accounts
- AVerdadero
- BFalso
66All accounts in the general ledger are closed at a company's fiscal year in order to facilitate preparation of the financial statements and to ready the accounts for the activities of the next year.
- AVerdadero
- BFalso
Información
- Descripción
- undergraduate Financial Accounting Test sobre CH 3 , creado por Brittany Shurack el 27/01/2022.
- Autor
- Brittany Shurack
- Idioma
- English
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- 1
- Etiquetas
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