Acct 2101 Exam 2, Top Exam Question and answers, 100% Accurate, rated A+

Acct 2101 Exam 2, Top Exam Question and answers, 100% Accurate, rated 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