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ACCT 2000 LOWE-ARDOIN EXAM 2 NEWEST
2025/2026 WITH COMPLETE QUESTIONS AND
ANSWERS.VERIFED/GRADED A+/
With ______________ ___________ Accounting, transactions are recorded in the
period in which the event occurs, not when the cash is received. -
(ANSWER)Accrual Basis
The ____________ Recognition Principle reuqires companies to recognize
revenue in the accounting period in which it is earned. - (ANSWER)revenue
Adjusting entries should be prepared every time _____________
________________ are issued in order to ensure all accounts are correctly
reported. - (ANSWER)financial statements
From what document are financial statements prepared? - (ANSWER)adjusted
trial balance
Which account is never affected by adjusting entries? - (ANSWER)cash
Accumulated Depreciation is what type of account? - (ANSWER)contra asset
What financial statement would include this account? - (ANSWER)balance sheet
, 2
An accrued expense adjusting entry records amounts owed (or incurred), but not
yet paid. Prior to completing this type of adjusting entry, which accounts are
understated? - (ANSWER)expense and liability (payable)
Temporary accounts are closed at the end of each _________. - (ANSWER)year
What are the three types of temporary accounts? - (ANSWER)revenues,
expenses, and dividends
Which two accounts are closed directly into retained earnings? -
(ANSWER)income summary and dividends
What is the first step in the accounting cycle? - (ANSWER)analyze transactions
What is the last step in the accounting cycle? - (ANSWER)prepare a post-closing
trial balance
Net Sales - Cost of Goods Sold = - (ANSWER)Gross Profit
Which inventory method maintains continuous records of inventory every time a
purchase or sale is made? - (ANSWER)perpetual
ACCT 2000 LOWE-ARDOIN EXAM 2 NEWEST
2025/2026 WITH COMPLETE QUESTIONS AND
ANSWERS.VERIFED/GRADED A+/
With ______________ ___________ Accounting, transactions are recorded in the
period in which the event occurs, not when the cash is received. -
(ANSWER)Accrual Basis
The ____________ Recognition Principle reuqires companies to recognize
revenue in the accounting period in which it is earned. - (ANSWER)revenue
Adjusting entries should be prepared every time _____________
________________ are issued in order to ensure all accounts are correctly
reported. - (ANSWER)financial statements
From what document are financial statements prepared? - (ANSWER)adjusted
trial balance
Which account is never affected by adjusting entries? - (ANSWER)cash
Accumulated Depreciation is what type of account? - (ANSWER)contra asset
What financial statement would include this account? - (ANSWER)balance sheet
, 2
An accrued expense adjusting entry records amounts owed (or incurred), but not
yet paid. Prior to completing this type of adjusting entry, which accounts are
understated? - (ANSWER)expense and liability (payable)
Temporary accounts are closed at the end of each _________. - (ANSWER)year
What are the three types of temporary accounts? - (ANSWER)revenues,
expenses, and dividends
Which two accounts are closed directly into retained earnings? -
(ANSWER)income summary and dividends
What is the first step in the accounting cycle? - (ANSWER)analyze transactions
What is the last step in the accounting cycle? - (ANSWER)prepare a post-closing
trial balance
Net Sales - Cost of Goods Sold = - (ANSWER)Gross Profit
Which inventory method maintains continuous records of inventory every time a
purchase or sale is made? - (ANSWER)perpetual
