Podcast
Questions and Answers
What system of accounting records revenues and expenses only when cash is received or paid?
What system of accounting records revenues and expenses only when cash is received or paid?
- Matching principle
- Accrual basis
- Cash basis (correct)
- Recognition basis
Which principle ensures that expenses are reported in the same period as the revenues they helped generate?
Which principle ensures that expenses are reported in the same period as the revenues they helped generate?
- Consistency principle
- Revenue Recognition Principle
- Time period principle
- Matching principle (correct)
Under which accounting system is revenue recognized when it is earned, regardless of when cash is received?
Under which accounting system is revenue recognized when it is earned, regardless of when cash is received?
- Cash basis
- Matching principle
- Revenue Recognition Principle
- Accrual basis (correct)
What is the main purpose of the Time period principle in accounting?
What is the main purpose of the Time period principle in accounting?
When does an expense occur according to the Expense Recognition & Matching Principle?
When does an expense occur according to the Expense Recognition & Matching Principle?
Which of the following is true about assets and expenses?
Which of the following is true about assets and expenses?
What is the primary purpose of adjusting entries?
What is the primary purpose of adjusting entries?
Which of the following is an example of a deferred expense?
Which of the following is an example of a deferred expense?
What is the purpose of depreciation?
What is the purpose of depreciation?
If a company purchases a delivery truck on January 1 for $21,000 with an estimated useful life of 5 years and a salvage value of $3,000, what would be the annual depreciation expense using the straight-line method?
If a company purchases a delivery truck on January 1 for $21,000 with an estimated useful life of 5 years and a salvage value of $3,000, what would be the annual depreciation expense using the straight-line method?
