Sample Test
Fundamental Accounting Principles, 24e (Wild)
Chapter 3 Adjusting Accounts for Financial Statements
1) A company’s fiscal year must correspond with the calendar year.
Answer: FALSE Difficulty: 1 Easy
Topic: The Accounting Period
Learning Objective: 03-C1 Explain the importan...
Test Bank for Fundamental Accounting Principles 24th Edition By Wild A+
TEST BANK For Fundamental Accounting Principles , 24th Edition By Wild || Verified All Chapters ( 1-26)| Newest Version 2024 A+
Test Bank for Fundamental Accounting Principles, 24th edition by John Wild.
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Fundamental Accounting Principles John Wild
24th Edition-Test Bank
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Sample Test
Fundamental Accounting Principles, 24e (Wild)
Chapter 3 Adjusting Accounts for Financial Statements
1) A company’s fiscal year must correspond with the calendar year.
Answer: FALSE
Difficulty: 1 Easy
Topic: The Accounting Period
Learning Objective: 03-C1 Explain the importance of periodic reporting and
the role of accrual accounting.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
,2) The time period assumption assumes that an organization’s activities can
be divided into specific time periods such as months, quarters, or years.
Answer: TRUE
Difficulty: 1 Easy
Topic: The Accounting Period
Learning Objective: 03-C1 Explain the importance of periodic reporting and
the role of accrual accounting.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
3) Interim financial statements report a company’s business activities for a
one-year period.
Answer: FALSE
Difficulty: 1 Easy
Topic: The Accounting Period
Learning Objective: 03-C1 Explain the importance of periodic reporting and
the role of accrual accounting.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Reporting
4) A fiscal year refers to an organization’s accounting period that spans twelve
consecutive months or 52 weeks.
Answer: TRUE
Difficulty: 1 Easy
,Topic: The Accounting Period
Learning Objective: 03-C1 Explain the importance of periodic reporting and
the role of accrual accounting.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
5) Adjusting entries are made after the preparation of financial statements.
Answer: FALSE
Difficulty: 1 Easy
Topic: The Accounting Period
Learning Objective: 03-C1 Explain the importance of periodic reporting and
the role of accrual accounting.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Measurement
6) Adjusting entries result in a better matching of revenues and expenses for
the period.
Answer: TRUE
Difficulty: 1 Easy
Topic: The Accounting Period
Learning Objective: 03-C1 Explain the importance of periodic reporting and
the role of accrual accounting.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Measurement
, 7) Two main accounting principles used in accrual accounting are expense
recognition and full closure.
Answer: FALSE
Difficulty: 1 Easy
Topic: The Accounting Period
Learning Objective: 03-C1 Explain the importance of periodic reporting and
the role of accrual accounting.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Measurement
8) Adjusting entries are necessary so that asset, liability, revenue, and
expense account balances are correctly recorded.
Answer: TRUE
Difficulty: 2 Medium
Topic: The Accounting Period
Learning Objective: 03-C1 Explain the importance of periodic reporting and
the role of accrual accounting.
Bloom’s: Understand
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Measurement
9) The expense recognition (matching) principle does not aim to record
expenses in the same accounting period as the revenue earned as a result of
these expenses.
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