ACC 556 Chapter 4 Quiz (100% Score)
This Tutorial was purchased 1 times & rated A+ by student like you.
Chapter 4 Quiz
The revenue recognition principle dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied.
An adjusting entry to a prepaid expense is required to recognize expired expenses.
Unearned revenue is a prepayment that requires an adjusting entry when services are performed.
· Question 4
When closing entries are prepared, each income statement account is closed directly to retained earnings.
· Question 5
The accounting cycle begins with the journalizing of the transactions
· Question 6
Management usually wants ________ financial statements and the IRS requires all businesses to file _________ tax returns.
· Question 7
A flower shop makes a large sale for $1,000 on November 30. The customer is sent a statement on December 5 and a check is received on December 10. The flower shop follows GAAP and applies the revenue recognition principle. When is the $1,000 considered to be recognized?
· Question 8
Which statement is correct?
· Question 9
Given the data below for a firm in its first year of operation, determine net income under the cash basis of accounting.
· Question 10
Accrued expenses are:
· Question 11
If a resource has been consumed but a bill has not been received at the end of the accounting period, then:
· Question 12
Depreciation is the process of:
· Question 13
If a company fails to adjust a Prepaid Rent account for rent that has expired, what effect will this have on that month's financial statements?
· Question 14
Why do generally accepted accounting principles require the application of the revenue recognition principle?
· Question 15
Which of the following would not result in unearned revenue?
· Question 16
Failure to prepare an adjusting entry at the end of the period to record an accrued expense would cause:
· Question 17
At the end of the fiscal year, the usual adjusting entry for accrued salaries owed to employees was omitted. Which of the following statements is true?
· Question 18
Can financial statements be prepared directly from the adjusted trial balance?
· Question 19
Which statement is correct concerning the adjusted trial balance?
· Question 20
Match the items below by entering the appropriate code letter in the space provided.
Write a reviewOrder Id
Order Id will be kept Confidential
Rating: A B C D F
Enter the code in the box below: