Accounting Principles Quiz

<p>They postpone the recognition of an expense to future periods. (D)</p> Signup and view all the answers

<p>Depreciation of non-current assets (C)</p> Signup and view all the answers

<p>It omits various transactions. (B)</p> Signup and view all the answers

<p>To assign revenues and expenses to the correct period. (C)</p> Signup and view all the answers

<p>Supplies (A)</p> Signup and view all the answers

<p>They must include cash transactions. (A)</p> Signup and view all the answers

<p>Profit or loss in the income statement. (B)</p> Signup and view all the answers

<p>Journalise the stated amount to the specific account. (D)</p> Signup and view all the answers

<p>Financial statements reflect accurate asset and liability balances. (C)</p> Signup and view all the answers

<p>A portion of the supplies must be accounted for as an expense. (C)</p> Signup and view all the answers

<p>$79,000 (A)</p> Signup and view all the answers

<p>Liability (C)</p> Signup and view all the answers

<p>$33,200 (B)</p> Signup and view all the answers

<p>$7,000 (C)</p> Signup and view all the answers

<p>Furniture (C)</p> Signup and view all the answers

<p>$1,800 (A)</p> Signup and view all the answers

<p>Prepaid rent (C)</p> Signup and view all the answers

<p>$600 (D)</p> Signup and view all the answers

<p>2,600 (C)</p> Signup and view all the answers

<p>34,200 (A)</p> Signup and view all the answers

<p>100 (C)</p> Signup and view all the answers

<p>300 (A)</p> Signup and view all the answers

<p>20,000 (A)</p> Signup and view all the answers

<p>Unearned service revenue (B)</p> Signup and view all the answers

<p>4,800 (A)</p> Signup and view all the answers

<p>900 (D)</p> Signup and view all the answers

<p>Unearned revenue (C)</p> Signup and view all the answers

<p>Cash paid but not yet earned (D)</p> Signup and view all the answers

<p>Cash (A+) increases and Unearned Service Revenue (L+) increases (A)</p> Signup and view all the answers

<p>Products or services to the customer (C)</p> Signup and view all the answers

<p>It is recognized as revenue (B)</p> Signup and view all the answers

<p>They are delayed revenues until the service is provided (A)</p> Signup and view all the answers

<p>Inaccurate invoices and contracts (D)</p> Signup and view all the answers

<p>Assets increase and liabilities increase (D)</p> Signup and view all the answers

<p>Contra asset account (D)</p> Signup and view all the answers

<p>It is subtracted from the furniture account (A)</p> Signup and view all the answers

<p>Total cost of furniture minus accumulated depreciation (A)</p> Signup and view all the answers

<p>$300 (C)</p> Signup and view all the answers

<p>Furniture and Accumulated depreciation—furniture (D)</p> Signup and view all the answers

<p>$17,700 (B)</p> Signup and view all the answers

<p>Balance forward (B)</p> Signup and view all the answers

<p>Non-current assets (B)</p> Signup and view all the answers

The initial amount of cash on hand at the start of a specific period, typically recorded as a debit in the ledger.

Amounts owed to a company by its customers for goods or services already delivered but not yet paid for.

Goods, such as office supplies or materials, used in the day-to-day running of a business.

Rent paid in advance for a period exceeding one accounting period.

Amounts owed by a company to its suppliers for goods or services received but not yet paid for.

Amounts owed to employees for their wages or salaries.

The owner's stake or investment in the business.

The owner's personal withdrawals from the business.

A trial balance that has not been adjusted for accrual accounting purposes at the end of an accounting period.

Journal entries made at the end of an accounting period to update accounts and correctly reflect revenues and expenses.

An accounting method that records revenues when earned and expenses when incurred, regardless of when cash is exchanged.

The end-of-period process of making adjusting entries to properly measure profit/loss and balance sheet accounts.

An asset account that tracks the amount of supplies on hand.

Adjusting entries never involve the Cash account.

Adjusting entries either increase revenue or increase expense.

Adjusting entries based on accrued or prepaid amounts should reflect the stated amount in the adjusting entry itself.

Cash payment occurs before an expense or cash receipt before revenue.

Recognize expense before payment, or revenue before receipt.

Entries made at the end of an accounting period to update accounts.

Expenses paid in advance, recognized later.

Expenses recognized before payment.

A summary of all the account balances before any adjustments are made.

The amounts in each account, showing either a debit or a credit.

An accounting entry that increases asset and expense or decreases liability and equity accounts.

An accounting entry that increases liability, owner's equity, and revenue accounts or decreases asset and expense accounts.

Date of the unadjusted trial balance.

Long-term tangible assets used in operations.

Money the company has on hand or in bank accounts.

Money owed to the company by its customers for goods or services.

A liability created when cash is received before services are performed.

Another name for unearned revenue, highlighting the delay in earning the revenue.

A record of a financial transaction.

Evidence to justify journal entries, such as invoices and contracts.

Deceptive methods to manipulate financial statements.

An account that shows what a company owes to others.

Money received by a business.

Digital educational courses or programs.

A contra-asset account that represents the total depreciation expense accumulated over the life of an asset.

An account that reduces the value of a related asset account on the balance sheet.

The systematic allocation of the cost of a tangible asset over its useful life.

The net book value of an asset, calculated by subtracting accumulated depreciation from the original cost.

An asset account that records the cost of furniture.

Financial statement that presents a snapshot of a company's assets, liabilities, and equity at a specific point in time.

Expense account that records the depreciation expense for an asset on an income statement.

An account that records a company's possessions or resources.