Exam (elaborations)
Accounting Exam Questions and Answers
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- Accounting
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- Accounting
Accounting Exam Questions and Answers
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Accounting Exam Questions andAnswers
Revenue Recognition Principle record revenue - Answer-in the period that the goods
and services are provided.
Accrual Basis Accounting record expenses - Answer-in the same period as the revenue
they help to generate.
Cash Basis Accounting record revenue - Answer-in the period cash is received from
customers.
Cash Basis Accounting record expenses - Answer-in the period that cash is paid.
Recording salaries owed to employees that will not be paid by the company until the
following accounting period is an example of an - Answer-Accrued expense.
The adjusting entry to record supplies used during the period includes a - Answer-Debit
to Supplies Expense
The adjusting entry to record interest earned during the period includes a - Answer-
Credit to Interest Revenue
Financial statements are prepared from which of the following trial balances - Answer-
Adjusted Trial Balance
The balance of retained earnings in the adjusted trial balance - Answer-Is the amount
shown for retained earnings in the balance sheet.
Describes the information recorded in an income statement - Answer-Net income for the
period is calculated by subtracting expenses from revenues.
Describes the information reported in the balance sheet - Answer-Total assets equal
total liabilities plus stockholders' equity.
Describes the information reported in the statement of cash flows - Answer-Net cash
flows from operating, investing, and financing activities.
The entry to close the expense accounts includes - Answer-A debit to retained earnings
Closing entries are made to - Answer-transfer the balances of temporary accounts to
retained earnings.
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