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51 the revenue recognition concept a is not in conflict with the cash method of acco 4294884

 

 

51. The revenue recognition concept 
A. is not in conflict with the cash method of accounting
B. determines when revenue is credited to a revenue account
C. states that revenue is not recorded until the cash is received
D. controls all revenue reporting for the cash basis of accounting

 

52. The matching concept 
A. addresses the relationship between the journal and the balance sheet
B. determines whether the normal balance of an account is a debit or credit
C. requires that the dollar amount of debits equal the dollar amount of credits on a trial balance
D. states that expenses related to revenue be reported at the same time the revenue is reported

 

53. Using accrual accounting, revenue is recorded and reported only 
A. when cash is received without regard to when the services are rendered
B. when the services are rendered without regard to when cash is received
C. when cash is received at the time services are rendered
D. if cash is received after the services are rendered

 

54. Using accrual accounting, expenses are recorded and reported only 
A. when they are incurred, whether or not cash is paid
B. when they are incurred and paid at the same time
C. if they are paid before they are incurred
D. if they are paid after they are incurred

 

55. One of the accounting concepts upon which deferrals and accruals are based is 
A. matching
B. cost
C. price-level adjustment
D. conservatism

 

56. If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the following describes the effect of the credit portion of the entry? 
A. decreases the balance of a stockholders’ equity account
B. increases the balance of a liability account
C. increases the balance of an asset account
D. decreases the balance of an expense account

 

57. If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry? 
A. increases the balance of a contra asset account
B. increases the balance of an asset account
C. decreases the balance of a stockholders’ equity account
D. increases the balance of an expense account

 

58. Prior to the adjusting process, accrued expenses have 
A. not yet been incurred, paid, or recorded
B. been incurred, not paid, but have been recorded
C. been incurred, not paid, and not recorded
D. been paid but have not yet been incurred

 

59. Prior to the adjusting process, accrued revenue has 
A. been earned and cash received
B. been earned and not recorded as revenue
C. not been earned but recorded as revenue
D. not been recorded as revenue but cash has been received

 

60. Deferred expenses have 
A. not yet been recorded as expenses or paid
B. been recorded as expenses and paid
C. been incurred and paid
D. not yet been recorded as expenses

 

 

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