Exam (elaborations)
Accounting Practice Exam Questions and Answers
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- Accounting
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- Accounting
Accounting Practice Exam Questions and Answers
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Accounting Practice Exam Questionsand Answers
A T-account is: - Answer-a way of depicting the basic form of an account
The ledger, book of final entry, has accounts to be arranged in: - Answer-financial
statement order
Which is NOT an application of the Revenue Recognition Principle: - Answer-accepting
CASH from an established customer for services to be performed IN THE NEXT 3
MONTHS
Revenue Recognition Principle - Answer-revenue is recognized when it is EARNED, not
when CASH IS RECEIVED
An adjusting entry generally: - Answer-affects a BALANCE SHEET and an INCOME
STATEMENT account
Prepaid expenses are: - Answer-paid and recorded in an ASSET account before they
are used
The use of cash basis violates __________ and _________ - Answer-Revenue
Recognition and Matching Principles
The entry to close Income Summary is ______ - Answer-debit IS, credit r/e
The post-closing trial balance is prepared after adjustments and ONLY contains: -
Answer-balance sheet accounts
Sales Revenue-Cost of Goods Sold= - Answer-gross profit
If a company determines cost of goods sold EACH TIME a sale occurs, it's a: - Answer-
perpetual inventory system
Harlow Company PURCHASED merchandise FROM Billford Company with freight FOB
shipping point. The freight cost will be paid by: - Answer-buyer
Income from operations is: - Answer-a multiple-step income statement
Items WAITING to be used in production are: - Answer-raw materials
The decision to include INVENTORY items in a company's year-end PHYSICAL
COUNT is determined by: - Answer-legal title
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