Acct 2101 Exam 2 Top Questions and answers, 100% Accurate, graded A+

Acct 2101 Exam 2 Top Questions and answers, 100% Accurate, graded A+ The term "recognition" means to report an economic event in the financial statements TRUE The term "accrual" describes an earnings event that is recognized before cash is paid or received TRUE The cost of a resource that will produce revenue in the future is an asset. TRUE Adjusting entries never affect a business's cash account TRUE An adjusting entry to accrue salary expense is a claims exchange transaction TRUE Revenues and liabilities are temporary accounts FALSE In the closing process, the amounts in temporary accounts are moved to retained earnings, a permanent account TRUE Immediately after closing, every temporary account has a balance of $0. TRUE Accounts that are closed include expenses, dividends, and unearned revenues FALSE After closing, the only accounts with non–zero balances are assets, liabilities, and equity. TRUE Two of the steps in the accounting cycle are adjusting the accounts and closing the accounts TRUE Cash–basis accounting often fails to math expenses with revenues TRUE The matching concept leads accountants to select the recognition alternative that produces the lowest amount of net income FALSE