ACCT 2001 wiley plus ch.4-6 Exam with || || || || || || ||
accurate detailed solutions || ||
What is the periodicity assumption? - ✔✔The economic life of a business can be divided into
|| || || || || || || || || || || || || || || ||
artificial time periods || ||
Which principle dictates that efforts (expenses) be recorded with accomplishments (revenues)? -
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✔✔Expense recognition principle || ||
Which one of these statements about the accrual basis of accounting is false?
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Companies record events that change their financial statements in the period in which events
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occur, even if cash was not exchanged.
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Companies recognize revenue in the period in which the performance obligation is satisfied.
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Companies record revenue only when they receive cash, and record expense only when the pay
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out cash. - ✔✔Companies record revenue only when they receive cash, and record expense only
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when they pay out cash.
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Adjusting entries are made to ensure that: || || || || || ||
Expenses are recognized in the period in which they are incurred.
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Revenues are recorded in the period in which the performance obligation is satisfied.
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Balance sheet and income statement accounts have correct balances at the end of an accounting
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period.
All of the above. - ✔✔All of the above
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Each of the following is a major type of adjusting entry except:
|| || || || || || || || || || ||
, Prepaid expenses ||
Accrued revenues ||
Accrued expenses ||
Unearned expenses - ✔✔Unearned expenses || || || ||
Adjustments for unearned revenues: || || ||
decrease____ & increase ____ - ✔✔Decrease liabilities and increase revenues
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Adjustments for prepaid expenses: || || ||
decrease___ & increase ___ - ✔✔Decrease assets and increase expenses
|| || || || || || || || ||
Adjustments for accrued revenues: || || ||
_____assets & ____revenues - ✔✔Increase both || || || || ||
What account will have a zero balance after a company has journalized and posted closing
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entries? - ✔✔Service revenue
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Which types of accounts will appear in the post-closing trial balance? - ✔✔Permanent accounts
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All of the following are required steps in the accounting cycle except:
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Journalizing and posting closing entries || || || ||
Preparing an adjusted trial balance || || || ||
Preparing a post-closing trial balance || || || ||
accurate detailed solutions || ||
What is the periodicity assumption? - ✔✔The economic life of a business can be divided into
|| || || || || || || || || || || || || || || ||
artificial time periods || ||
Which principle dictates that efforts (expenses) be recorded with accomplishments (revenues)? -
|| || || || || || || || || || || ||
✔✔Expense recognition principle || ||
Which one of these statements about the accrual basis of accounting is false?
|| || || || || || || || || || || ||
Companies record events that change their financial statements in the period in which events
|| || || || || || || || || || || || || ||
occur, even if cash was not exchanged.
|| || || || || ||
Companies recognize revenue in the period in which the performance obligation is satisfied.
|| || || || || || || || || || || ||
Companies record revenue only when they receive cash, and record expense only when the pay
|| || || || || || || || || || || || || || ||
out cash. - ✔✔Companies record revenue only when they receive cash, and record expense only
|| || || || || || || || || || || || || || ||
when they pay out cash.
|| || || ||
Adjusting entries are made to ensure that: || || || || || ||
Expenses are recognized in the period in which they are incurred.
|| || || || || || || || || ||
Revenues are recorded in the period in which the performance obligation is satisfied.
|| || || || || || || || || || || ||
Balance sheet and income statement accounts have correct balances at the end of an accounting
|| || || || || || || || || || || || || || ||
period.
All of the above. - ✔✔All of the above
|| || || || || || || ||
Each of the following is a major type of adjusting entry except:
|| || || || || || || || || || ||
, Prepaid expenses ||
Accrued revenues ||
Accrued expenses ||
Unearned expenses - ✔✔Unearned expenses || || || ||
Adjustments for unearned revenues: || || ||
decrease____ & increase ____ - ✔✔Decrease liabilities and increase revenues
|| || || || || || || || ||
Adjustments for prepaid expenses: || || ||
decrease___ & increase ___ - ✔✔Decrease assets and increase expenses
|| || || || || || || || ||
Adjustments for accrued revenues: || || ||
_____assets & ____revenues - ✔✔Increase both || || || || ||
What account will have a zero balance after a company has journalized and posted closing
|| || || || || || || || || || || || || || ||
entries? - ✔✔Service revenue
|| || ||
Which types of accounts will appear in the post-closing trial balance? - ✔✔Permanent accounts
|| || || || || || || || || || || || ||
All of the following are required steps in the accounting cycle except:
|| || || || || || || || || || ||
Journalizing and posting closing entries || || || ||
Preparing an adjusted trial balance || || || ||
Preparing a post-closing trial balance || || || ||
