Chapter 4 Quiz\t\t\t\t\t\t\t\t\tQuestion 1\t\t\t\t\t\t\t\t\tThe revenue recognition principle dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied.\t\t\t\t\t\t\t\t\tQuestion 2\t\t\t\t\t\t\t\t\tAn adjusting entry to a prepaid expense is required to recognize expired expenses.\t\t\t\t\t\t\t\t\tQuestion 3\t\t\t\t\t\t\t\t\tUnearned revenue is a prepayment that requires an adjusting entry when services are performed.\t\t\t\t\t\t\t\t\t\u00b7 Question 4\t\t\t\t\t\t\t\t\tWhen closing entries are prepared, each income statement account is closed directly to retained earnings.\t\t\t\t\t\t\t\t\t\u00b7 Question 5\t\t\t\t\t\t\t\t\tThe accounting cycle begins with the journalizing of the transactions\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\t\u00b7 Question 6\t\t\t\t\t\t\t\t\tManagement usually wants ________ financial statements and the IRS requires all businesses to file _________ tax returns.\t\t\t\t\t\t\t\t\t\u00b7 Question 7\t\t\t\t\t\t\t\t\tA flower shop makes a large sale for $1,000 on November 30. The customer is sent a statement on December 5 and a check is received on December 10. The flower shop follows GAAP and applies the revenue recognition principle. When is the $1,000 considered to be recognized?\t\t\t\t\t\t\t\t\t\u00b7 Question 8\t\t\t\t\t\t\t\t\tWhich statement is correct?\t\t\t\t\t\t\t\t\t\u00b7 Question 9\t\t\t\t\t\t\t\t\tGiven the data below for a firm in its first year of operation, determine net income under the cash basis of accounting.\t\t\t\t\t \ufffd \ufffd \ufffd\u00a0\u00a0 Cash received from customers \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 $48,000\t\t\t\t\t \ufffd \ufffd \ufffd\u00a0\u00a0 Accounts receivable \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0 12,000\t\t\t\t\t \ufffd \ufffd \ufffd\u00a0\u00a0 Cash paid for expenses \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0 26,000\t\t\t\t\t \ufffd \ufffd \ufffd\u00a0\u00a0 Accounts payable (related to expenses) \ufffd \ufffd\u00a0\u00a0 3,000\t\t\t\t\t \ufffd \ufffd \ufffd\u00a0\u00a0 Prepaid rent for next period \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 7,000\t\t\t\t\t\t\t\t\t\u00b7 Question 10\t\t\t\t\t\t\t\t\tAccrued expenses are:\t\t\t\t\t\t\t\t\t\u00b7 Question 11\t\t\t\t\t\t\t\t\tIf a resource has been consumed but a bill has not been received at the end of the accounting period, then:\t\t\t\t\t\t\t\t\t\u00b7 Question 12\t\t\t\t\t\t\t\t\tDepreciation is the process of:\t\t\t\t\t\t\t\t\t\u00b7 Question 13\t\t\t\t\t\t\t\t\tIf a company fails to adjust a Prepaid Rent account for rent that has expired, what effect will this have on that month’s financial statements?\t\t\t\t\t\t\t\t\t\u00b7 Question 14\t\t\t\t\t\t\t\t\tWhy do generally accepted accounting principles require the application of the revenue recognition principle?\t\t\t\t\t\t\t\t\t\u00b7 Question 15\t\t\t\t\t\t\t\t\tWhich of the following would not result in unearned revenue?\t\t\t\t\t\t\t\t\t\u00b7 Question 16\t\t\t\t\t\t\t\t\tFailure to prepare an adjusting entry at the end of the period to record an accrued expense would cause:\t\t\t\t\t\t\t\t\t\u00b7 Question 17\t\t\t\t\t\t\t\t\tAt the end of the fiscal year, the usual adjusting entry for accrued salaries owed to employees was omitted. Which of the following statements is true?\t\t\t\t\t\t\t\t\t\u00b7 Question 18\t\t\t\t\t\t\t\t\tCan financial statements be prepared directly from the adjusted trial balance?\t\t\t\t\t\t\t\t\t\u00b7 Question 19\t\t\t\t\t\t\t\t\tWhich statement is correct concerning the adjusted trial balance?\t\t\t\t\t\t\t\t\t\u00b7 Question 20\t\t\t\t\t\t\t\t\tMatch the items below by entering the appropriate code letter in the space provided.<\/p>\n","protected":false},"excerpt":{"rendered":"
Chapter 4 Quiz Question 1 The revenue recognition principle dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied. Question 2 An adjusting entry to a prepaid expense is required to recognize expired expenses. Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200170","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200170"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200170\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}