Accounting Priciples Adjusting the account

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Nội dung chi tiết: Accounting Priciples Adjusting the account

Accounting Priciples Adjusting the account

Le Thu Thuy - 11195077CHAPTER 3 -ANSWER:ADJUSTING THE ACCOUNTSTRUE - FALSE STATEMENTNoTrue/ FalseStatements1TRUEThe periodicity assumption states that

Accounting Priciples Adjusting the account t the economic life of a business entity can be divided into artificial time periods.2FALSEThe periodicity assumption is not often referred to as the

expense recognition principle.3TRUEThe revenue recognition principle dictates that revenue be recognized in the accounting period in which it is earne Accounting Priciples Adjusting the account

d.4TRUEExpense recognition is tied to revenue recognition5TRUEThe revenue recognition principle and the expense recognition principle are helpful guid

Accounting Priciples Adjusting the account

es used in determining net income or net loss for a period6TRUEThe expense recognition principle requires that efforts be related to accomplishments7T

Le Thu Thuy - 11195077CHAPTER 3 -ANSWER:ADJUSTING THE ACCOUNTSTRUE - FALSE STATEMENTNoTrue/ FalseStatements1TRUEThe periodicity assumption states that

Accounting Priciples Adjusting the account as the matching principle9FALSEincome will not always be greater under the cash basis of accounting than under the accrual basis of accounting.10TRUET

he cash basis of accounting is not in accordance with generally accepted accounting principles11TRUEAdjusting entries are often made because some busi Accounting Priciples Adjusting the account

ness events are not recorded as they occur12FALSEAdjusting entries are recorded in the general journal and posted to the accounts in the general ledge

Accounting Priciples Adjusting the account

r.13FALSEAdjusting entries are recorded in the general journal and posted to the accounts in the general kdgcL14FALSEAdjusting entries are made at the

Le Thu Thuy - 11195077CHAPTER 3 -ANSWER:ADJUSTING THE ACCOUNTSTRUE - FALSE STATEMENTNoTrue/ FalseStatements1TRUEThe periodicity assumption states that

Accounting Priciples Adjusting the account ting entry to a prepaid expense is required to recognize expired expenses16FALSEAdjusting entries always involve a balance sheet account (Interest Pay

able, Prepaid Insurance, Accounts Receivable, etc.)17TRUEAn adjusting entry always involves a balance sheet account and an income statement account18T Accounting Priciples Adjusting the account

RUERevenue received before it is recognized and expenses used or consumed before being paid are both initially recorded as liabilities19TRUERevenue re

Accounting Priciples Adjusting the account

ceived before it is earned and expenses used or consumed before being paid are both initially recorded as liabilities.20FALSEAccrued revenues are reve

Le Thu Thuy - 11195077CHAPTER 3 -ANSWER:ADJUSTING THE ACCOUNTSTRUE - FALSE STATEMENTNoTrue/ FalseStatements1TRUEThe periodicity assumption states that

Accounting Priciples Adjusting the account orded22FALSEThe difference between unearned revenue and accrued revenue is that accrued revenue is capital not earned on services already provided.une

arned revenue is. capital already earned on services not yet provided.23FALSEIf prepaid costs are initially recorded as an asset, adjusting entries wi Accounting Priciples Adjusting the account

ll be needed durinc the six months to be certain that the current month'sinsurance expense is reported on each month's income statement24FALSENet book

Accounting Priciples Adjusting the account

value is the cost of an asset subtracted by its accumulated depreciation.25FALSESince book value is strictly an accounting and tax calculation, it ma

Le Thu Thuy - 11195077CHAPTER 3 -ANSWER:ADJUSTING THE ACCOUNTSTRUE - FALSE STATEMENTNoTrue/ FalseStatements1TRUEThe periodicity assumption states that

Accounting Priciples Adjusting the account unt balance27TRUEA liability—revenue account relationship exists with an unearned rent revenue adjusting entry.28FALSEThe balances of the Depreciation

Expense and the Accumulated Depreciation accounts not always be the same. Accumulated depreciation is a running total of depreciation for an asset th Accounting Priciples Adjusting the account

at is recorded on the balance sheet.

Le Thu Thuy - 11195077CHAPTER 3 -ANSWER:ADJUSTING THE ACCOUNTSTRUE - FALSE STATEMENTNoTrue/ FalseStatements1TRUEThe periodicity assumption states that