Accounting Principles

The time period principle assumes that an organization's activities can be divided into specific time periods including:

The length of time covered by a set of periodic financial statements is referred to as the:

The accounting principle that requires revenue to be reported when earned is the:

Adjusting entries:

The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the:

The system of preparing financial statements based on recognizing revenues when the cash is received and reporting expenses when the cash is paid is called:

The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is:

Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of:

Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is:

A company had no office supplies available at the beginning of the year. During the year, the company purchased $250 worth of office supplies. On December 31, $75 worth of office supplies remained. How much should the company report as office supplies expense for the year?

The adjusting entry to record the earned but unpaid salaries of employees at the end of an accounting period is:

A trial balance prepared after adjustments have been recorded is called a(n):

In its first year of operations, Grace Company reports the following: Earned revenues of $60,000 ($52,000 cash received from customers); Incurred expenses of $35,000 ($31,000 cash paid toward them); Prepaid $8,000 cash for costs that will not be expensed until next year. Net income under the accrual basis of accounting is:

In its first year of operations, Grace Company reports the following: Earned revenues of $60,000 ($52,000 cash received from customers); Incurred expenses of $35,000 ($31,000 cash paid toward them); Prepaid $8,000 cash for costs that will not be expensed until next year. Net income under the cash basis of accounting is:

A company made no adjusting entry for accrued and unpaid employee wages of $28,000 on December 31. This oversight would:

Profit margin is defined as:

A company earned $3,000 in net income for October. Its net sales for October were $10,000. Its profit margin is:

On July 1 Plum Co. paid $7,500 cash for management services to be performed over a two-year period. Plum follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On July 1 Plum should record:

Accrued revenues:

An account linked with another account that has an opposite normal balance and is subtracted from the balance of the related account is a(n):

The total amount of depreciation recorded against an asset over the entire time the asset has been owned:

The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used, representing the expense of using the assets, is called:

On April 1, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What amount of the insurance expense will be reported on the annual income statement for the year ended December 31?

Unearned revenue is reported in the financial statements as:

Which of the following assets is not depreciated?

Which of the following does not require an adjusting entry at year-end?

Incurred but unpaid expenses that are recorded during the adjusting process with a debit to an expense and a credit to a liability are:

The adjusting entry at the end of an accounting period to record the unpaid salaries of employees for work provided is:

A company pays its employees $4,000 each Friday, which amounts to $800 per day for the five-day workweek that begins on Monday. If the monthly accounting period ends on Thursday and the employees worked through Thursday, the amount of salaries earned but unpaid at the end of the accounting period is:

On January 1, Eastern College received $1,200,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees. The term spans four months beginning on January 2 and the college spreads the revenue evenly over the months of the term. Assuming the college prepares adjustments monthly, what amount of tuition revenue should the college recognize on February 28?

The difference between the cost of an asset and the accumulated depreciation for that asset is called

A company's Office Supplies account shows a beginning balance of $600 and an ending balance of $400. If office supplies expense for the year is $3,100, what amount of office supplies was purchased during the period?

On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The subscriptions started immediately. What is the amount of revenue that should be recorded by Griffith Publishing Company for the second year of the subscription assuming the company uses a calendar-year reporting period?

A trial balance prepared before any adjustments have been recorded is:

Financial statements are typically prepared in the following order:

An annual reporting period consisting of any twelve consecutive months is known as:

On December 1, Casualty Insurance Company borrowed $50,000 at a 6.0% interest rate from One Mutual Bank. The note payable plus interest will not be paid until April 1 of the following year. The company's annual accounting period ends on December 31 and adjustments are only made at year-end. The adjusting entry needed on December 31 is: