Week 4 Quiz

Question 1

Allocating the cost of an asset over its useful life is known as?

Accepted Answer

Depreciation

Question 2

An example of Accrued revenue would be?

Accepted Answer

Revenue for services performed but unrecorded.

Question 3

"Deferrals" are adjusting entries for either (1.) Prepaid Expenses, or (2.) Unearned Revenue

Accepted Answer

True

Question 4

The adjusted Trial balance is used show what?

Accepted Answer

All adjusted balances in the accounts at end of an accounting period.

Question 5

"Revenue Recognition Principle" means?

Accepted Answer

Revenue is recognized only when it's earned. (work obligation is done)

Question 6

Perpetual inventory systems record(debit) purchases to an "Inventory" account

Accepted Answer

True

Question 7

The Trial Balance has no limitations

Accepted Answer

False

Question 8

On the balance sheet, what are the "Permanent Accounts"

Accepted Answer

Assets, Liabilities, Common Stock, and Retained Earnings.

Question 9

"Expense Recognition Principle" means?

Accepted Answer

To report expenses incurred during the same period revenue is recognized in, To match efforts (expenses) with results (revenues).

Question 10

"Periodicity Assumption" is where accountants divide the economic life of a firm into artificial time periods.

Accepted Answer

True

Question 11

On the Balance Sheet, what are the "temporary accounts" to be "Closed-out" at the end of the Accounting Period?

Accepted Answer

All Dividends, Revenues, and Expense accounts.

Question 12

Adjusting entries are needed because?

Accepted Answer

Some items may be unrecorded., Some transactions are not recorded daily because it is not efficient to do., Things sometimes get recorded outside the accounting period.

Question 13

Expenses are increased with a debit to the left side of the t-account.

Accepted Answer

True

Question 14

On the Balance Sheet, what is the expanded accounting equation?

Accepted Answer

Assets = Liabilities + (Common Stock + Revenues - expenses - Dividends)

Question 15

"Accumulated Depreciation" is also known as a "Contra-Asset Account"

Accepted Answer

True

Question 16

Periodic inventory systems record(debits) purchases to a "purchases" account.

Accepted Answer

True

Question 17

Revenues are increased with a debit to the left side of the t-account

Accepted Answer

False

Question 18

Liabilities are increased with a credit to the right side of the t-account

Accepted Answer

True

Question 19

"Accrual-Basis Accounting" is a concept meaning to do what?

Accepted Answer

Recording transactions in the period in which events occur., Using Adjusting Entries to ensure the Rev & exp principles are followed.

Question 20

An example of an accrued expense includes

Accepted Answer

Salaries & Wages that are owed but not paid

Question 21

Adjusting Entries are classified as either "Accruals" or "Deferrals"

Accepted Answer

True

Question 22

On the income statement, how do you calculate net income?

Accepted Answer

Revenues - Expenses = Net Income

Question 23

"Accruals" are adjusting entries for either (1.) Accrued Revenue, or (2.)Accrued Expenses

Accepted Answer

True

Question 24

Some limitations of a Trial Balance include?

Accepted Answer

It does not prove that all transactions were recorded., It does not guarantee freedom from recording transactional errors

Week 4 Quiz

Questions 24

Week 4 Quiz

Questions 24