ACG 2021 Exam 2 with all Correct & 100% Verified
Answers |Latest Version |Already Graded A+
Revenue Recognition Principle ✔Correct Answer-companies recognize revenue in the
accounting period in which the performance obligation was satisfied.
Expense Recognition Principle ✔Correct Answer-matches expenses with revenues in the
period in the period when the company makes effort to generate those revenues
Cash - Basis Accounting ✔Correct Answer-Revenues and Expenses are only recognized when
cash is recieved
Accrual - Basis Accounting ✔Correct Answer-Transactions recorded in the period in which the
events occurred. (Revenue and Expense Principle)
Adjusting Entries ✔Correct Answer-Entries made at the end of an accounting period to ensure
that the revenue and expense recognition principles are followed. (Will always include one
income statement account and one balance sheet account.) (Never include cash)
Two types of adjusting entries ✔Correct Answer-Accruals and Deferrals
Accruals ✔Correct Answer-Revenues or expenses incurred but not yet received or paid in cash
(increases both a balance sheet and income statement account)
Deferrals ✔Correct Answer-Expenses paid or cash received before the expense or revenue
were incurred. (prepaid expenses or unearned revenues)
Prepaid Expenses ✔Correct Answer-Asset! Not Expense!!!
useful life ✔Correct Answer-the length of use of a productive asset
Depreciation ✔Correct Answer-The process of allocating the cost of an asset to as expense
over its useful life (does not attempt to report the actual change in value of the asset)
Accumulated Depreciation ✔Correct Answer-An anti-asset account to account for
depreciation of an asset while still being able to see how much the asset was originally
purchased for. This account keeps track of total depreciation of the asset
Book Value (Carrying Value) ✔Correct Answer-The difference between the cost of a
depreciable asset and its related accumulated depreciation
Answers |Latest Version |Already Graded A+
Revenue Recognition Principle ✔Correct Answer-companies recognize revenue in the
accounting period in which the performance obligation was satisfied.
Expense Recognition Principle ✔Correct Answer-matches expenses with revenues in the
period in the period when the company makes effort to generate those revenues
Cash - Basis Accounting ✔Correct Answer-Revenues and Expenses are only recognized when
cash is recieved
Accrual - Basis Accounting ✔Correct Answer-Transactions recorded in the period in which the
events occurred. (Revenue and Expense Principle)
Adjusting Entries ✔Correct Answer-Entries made at the end of an accounting period to ensure
that the revenue and expense recognition principles are followed. (Will always include one
income statement account and one balance sheet account.) (Never include cash)
Two types of adjusting entries ✔Correct Answer-Accruals and Deferrals
Accruals ✔Correct Answer-Revenues or expenses incurred but not yet received or paid in cash
(increases both a balance sheet and income statement account)
Deferrals ✔Correct Answer-Expenses paid or cash received before the expense or revenue
were incurred. (prepaid expenses or unearned revenues)
Prepaid Expenses ✔Correct Answer-Asset! Not Expense!!!
useful life ✔Correct Answer-the length of use of a productive asset
Depreciation ✔Correct Answer-The process of allocating the cost of an asset to as expense
over its useful life (does not attempt to report the actual change in value of the asset)
Accumulated Depreciation ✔Correct Answer-An anti-asset account to account for
depreciation of an asset while still being able to see how much the asset was originally
purchased for. This account keeps track of total depreciation of the asset
Book Value (Carrying Value) ✔Correct Answer-The difference between the cost of a
depreciable asset and its related accumulated depreciation
