ACCT 2000 EXAM 2 LSU TERMS
EXAMINATION TEST 2026 COMPLETE
QUESTIONS AND ANSWERS PRACTICE
SOLUTION TESTED
●● 1. The ______ Recognition Principle requires companies to
recognize revenue in the accounting period in which it is earned.
Answer: Revenue
●● 1. Adjustments are prepared every time ______________ are issued
in order to ensure all accounts are correctly reported.
Answer: Financial Statements
●● Adjustments includes one ______ and one ____ accounts.
Answer: Balance Sheet (assets or liability)
Income Statement (revenue or expense)
●● 1. Accumulated Deprecation is what type of account? ________.
What financial statement would include this account? ______________
Answer: Contra Asset Account
Balance Sheet
,●● List the four types of adjustments:
Answer: 1. Prepaid expenses
2. Unearned revenues
3. accrued revenues
4. accrued expenses
●● An accrued expense adjustment, records amounts owed (or incurred),
but not yet paid. Prior to completing this type of adjustment, which
accounts are understated?
Answer: Expenses and Liabilities
●● A Supply account at the end of the period showed a balance of
$5,000. However, a physical counts showed only $3,000. To correct this
issue, the supplies account is _________________ and the supplies
expense account is ______ by ________________.
Answer: Decreased
Increased
$2,000
●● A Supply account at the end of the period showed a balance of
$5,000. However, a physical counts showed only $3,000. To correct this
issue, the supplies account is decreased and the supplies expense account
is increased by $2,000.
, from the scenario above, if the company does not make the adjustment,
supplies expense, net income, and stockholders' equity would be
_____________and assets would be ____________.
Answer: understated
overstated
●● Which one of these statements about the accrual basis of accounting
is false?
a. Companies record events that change their financial statements in the
period in which events occur, even if cash was not exchanged.
b. Companies recognize revenue in the period in which it is earned.
c. This basis is in accord with generally accepted accounting principles.
d. Companies record revenue only when they receive cash, and record
expense only when they pay out cash.
Answer: d. Companies record revenue only when they receive cash, and
record expense only when they pay out cash.
●● 1) Each of the following is a major type (or category) of adjustment
except:
a. Prepaid expenses
b. Accrued revenues
c. Accrued expenses
d. Earned expenses
Answer: d. Earned expenses
EXAMINATION TEST 2026 COMPLETE
QUESTIONS AND ANSWERS PRACTICE
SOLUTION TESTED
●● 1. The ______ Recognition Principle requires companies to
recognize revenue in the accounting period in which it is earned.
Answer: Revenue
●● 1. Adjustments are prepared every time ______________ are issued
in order to ensure all accounts are correctly reported.
Answer: Financial Statements
●● Adjustments includes one ______ and one ____ accounts.
Answer: Balance Sheet (assets or liability)
Income Statement (revenue or expense)
●● 1. Accumulated Deprecation is what type of account? ________.
What financial statement would include this account? ______________
Answer: Contra Asset Account
Balance Sheet
,●● List the four types of adjustments:
Answer: 1. Prepaid expenses
2. Unearned revenues
3. accrued revenues
4. accrued expenses
●● An accrued expense adjustment, records amounts owed (or incurred),
but not yet paid. Prior to completing this type of adjustment, which
accounts are understated?
Answer: Expenses and Liabilities
●● A Supply account at the end of the period showed a balance of
$5,000. However, a physical counts showed only $3,000. To correct this
issue, the supplies account is _________________ and the supplies
expense account is ______ by ________________.
Answer: Decreased
Increased
$2,000
●● A Supply account at the end of the period showed a balance of
$5,000. However, a physical counts showed only $3,000. To correct this
issue, the supplies account is decreased and the supplies expense account
is increased by $2,000.
, from the scenario above, if the company does not make the adjustment,
supplies expense, net income, and stockholders' equity would be
_____________and assets would be ____________.
Answer: understated
overstated
●● Which one of these statements about the accrual basis of accounting
is false?
a. Companies record events that change their financial statements in the
period in which events occur, even if cash was not exchanged.
b. Companies recognize revenue in the period in which it is earned.
c. This basis is in accord with generally accepted accounting principles.
d. Companies record revenue only when they receive cash, and record
expense only when they pay out cash.
Answer: d. Companies record revenue only when they receive cash, and
record expense only when they pay out cash.
●● 1) Each of the following is a major type (or category) of adjustment
except:
a. Prepaid expenses
b. Accrued revenues
c. Accrued expenses
d. Earned expenses
Answer: d. Earned expenses
