1 for specific request mail
ACCT 2000 LSU Exam 2 Questions and Correct
Answers | Latest Update
Periodicity Assumption
Ans: requires accountants to divide the economic life of a business into
artificial time periods
Revenue Recognition Principle
Ans: companies recognize revenue in the accounting period in which it
is earned
Assignment Expert
Expense Recognition Principle
Guru01 - Stuvia
Ans: Expenses are matched with revenues in the period when efforts are
expended to generate revenues
Accrual-Basis Accounting
2026
Ans: - transactions recorded in the periods in which the events occur
©
- revenues are recognized when earned, even if cash was not received
- Expenses are recognized when incurred, even if cash was not paid
Cash-Basis Accounting
Ans: - Revenues are recognized only when cash is received
- expenses are recognized only when cash is paid
- Not allowed under generally accepted accounting principles
Adjusting entries make it possible to
Ans: report correct amounts on the balance sheet and on the income
statement
A company makes adjusting entries when?
, 2 for specific request mail
Ans: every time they prepare financial statements
Adjusting entires include
Ans: one income statement account and one balance sheet account
When doing adjusting entires you must make sure which rules are
followed?
Ans: revenue and expense principles
Prepaid expenses
Assignment Expert
Ans: expenses paid in cash and recorded as assets before they are used
or consumed
Guru01 - Stuvia
Unearned revenue
Ans: cash received and reported as liabilities before revenue is earned
2026
Prepaid expense adjusting entry
Ans: results in an increase a debit to and expense account and a
©
decrease a credit to an asset account
Accumulated depreciation-equipment is what type of accounts?
Ans: contra asset account
Contra asset accounts appear
Ans: just after the account it offsets (equipment) on the balance sheet
Unearned revenue adjusting entry records
Ans: the revenue that has been earned and to show the liability
Unearned revenue adjusting entry results in
Ans: a decrease (a debit) to a liability account and an increase (a credit)
to a revenue account
ACCT 2000 LSU Exam 2 Questions and Correct
Answers | Latest Update
Periodicity Assumption
Ans: requires accountants to divide the economic life of a business into
artificial time periods
Revenue Recognition Principle
Ans: companies recognize revenue in the accounting period in which it
is earned
Assignment Expert
Expense Recognition Principle
Guru01 - Stuvia
Ans: Expenses are matched with revenues in the period when efforts are
expended to generate revenues
Accrual-Basis Accounting
2026
Ans: - transactions recorded in the periods in which the events occur
©
- revenues are recognized when earned, even if cash was not received
- Expenses are recognized when incurred, even if cash was not paid
Cash-Basis Accounting
Ans: - Revenues are recognized only when cash is received
- expenses are recognized only when cash is paid
- Not allowed under generally accepted accounting principles
Adjusting entries make it possible to
Ans: report correct amounts on the balance sheet and on the income
statement
A company makes adjusting entries when?
, 2 for specific request mail
Ans: every time they prepare financial statements
Adjusting entires include
Ans: one income statement account and one balance sheet account
When doing adjusting entires you must make sure which rules are
followed?
Ans: revenue and expense principles
Prepaid expenses
Assignment Expert
Ans: expenses paid in cash and recorded as assets before they are used
or consumed
Guru01 - Stuvia
Unearned revenue
Ans: cash received and reported as liabilities before revenue is earned
2026
Prepaid expense adjusting entry
Ans: results in an increase a debit to and expense account and a
©
decrease a credit to an asset account
Accumulated depreciation-equipment is what type of accounts?
Ans: contra asset account
Contra asset accounts appear
Ans: just after the account it offsets (equipment) on the balance sheet
Unearned revenue adjusting entry records
Ans: the revenue that has been earned and to show the liability
Unearned revenue adjusting entry results in
Ans: a decrease (a debit) to a liability account and an increase (a credit)
to a revenue account
