Cengage Learning Testing, Powered by Cognero Page 1
,Chapter 5—Adjusting Entries and the Work Sheet
4. Accounting for revenue on a cash basis means that no entry of revenue is made in the account until the cash is
received for the services performed.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.19 - LO: 5-6
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Communication
TOPICS: ACBSP: APC-04-Cash vs. Accrual
KEYWORDS: Bloom's: Evaluating
NOTES: 1 min.
5. Adjusting entries may affect the cash account.
a. True
b. False
8. Under the modified cash basis of accounting, cash payments for assets with lives longer than one accounting period
(buildings, equipment, insurance, etc.) are recorded as assets and adjustments are made each period.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.19 - LO: 5-6
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Communication
TOPICS: ACBSP: APC-04-Cash vs. Accrual
KEYWORDS: Bloom's: Evaluating
NOTES: 1 min.
9. A manual work sheet is usually prepared in pencil.
a. True
b. False
Cengage Learning Testing, Powered by Cognero Page 3
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