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AC 210 Learnsmart CHAPTER 3 Questions with 100% Correct Answers | Latest Update 2024 | Verified
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AC 210 Learnsmart CHAPTER 3 Questions with 100% Correct Answers | Latest Update 2024 | Verified
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AC 210 Learnsmart CHAPTER 3Questions with 100% Correct Answers |
Latest Update 2024 | Verified
Reporting revenues only when cash is received and expenses only when cash is paid is called ______
basis of accounting.
Cash
_____ basis accounting is the only acceptable method for external reporting of net income.
accrual
After increases and decreases in an account are recorded, the amount remaining in the account is its
ending
balance
The financial statement that reports revenues and expenses is the ____
income statement
_____ is the quantity sold times the price charged from selling goods or services to customers.
Revenue
Utilities expense is ____.
debited when the service is received
____ are the costs of operating a business that are incurred to generate revenues in the period covered
by the income statement.
expenses
If revenues are greater than expenses, the company generated net income. If expenses are greater than
revenues, the company generated a net __________.
loss
, cash
Accounts Receivable
Deferred Revenue
collections occur in the same period as the services
The service is performed prior to the collections
Collections occur in advance of the performance of the service
The totals on a trial balance reveal whether the total ___ equal the total _____.
debits and credits
In accrual accounting, according to the _____ recognition principle, revenues should be recognized
when the seller performs the work promised, not necessarily when cash is received.
revenue
Reporting revenues when the goods or services are provided and expenses when they are incurred is
called _____ basis accounting.
accrual
Cash
Accounts Payable
Prepaid Advertising
Payment occurs in the same period as advertisement is run.
The advertisement is run prior to the payment.
Payment occurs in advance of when the advertisement is run.
The trial balance is an internal report used to determine whether total debits _____ total credits.
equals
Under the accrual basis of accounting, the ____ recognition (matching) principle requires that expenses
be recognized in the same period as the related revenues.
expense
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