FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 4: Income Measurement and Accrual Accounting

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

Accumulated Depreciation

A) increases assets.
B) decreases assets.
C) increases liabilities.
D) decreases liabilities.

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

Match the following choices to the listed situation. -Rent is owed by a tenant but not yet collected

A) a deferred expense
B) a deferred revenue
C) an accrued liability
D) an accrued asset

Correct Answer

verified

Show Answer

Question 23

Short Answer

Review LaterAdd Note

Under the accrual basis of accounting, at what point in time should a fast food restaurant recognize revenue? _________________________

Income statement accounts are also known as which of the following?

A company that forgets to recognize depreciation for the year overstates its income and assets.

Which of the following journal entries is required to close the Income Summary account of a company with a net loss?

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Sales Revenue

Every adjustment involves at least one income statement and one balance sheet account.

Roman Industries' plant operates five days per week with a daily payroll of $6,000.Employees are paid every Saturday for the workweek just completed (Monday through Friday) .The last day of the month is Wednesday, March 31.What is the amount of Wages Expense recorded on the next payday, Saturday, April 3?

Sun Corp.sells merchandise to customers.Sun should normally recognize

Camp Consulting Services started business on January 1, 2016.Camp performed services for customers totaling $100,000 of which 40% remain uncollected at the end of December.Under the accrual basis, what amounts would appear on Camp Consulting's financial statements for 2016? $\begin{array}{l}&\text {Income Statement }&\text { Statement of Cash Flows}\\\hline a.&(\$100,000)&(\$60,000)\\b.&(\$100,000)&(\$100,000)\\c.&(\$60,000)&(\$60,000)\\d.&(\$60,000)&(\$100,000)\\\end{array}$ ​

The amount of interest accrued is added to the note payable account and reported in the liabilities section of the balance sheet.

Accountants often prepare work sheets at the end of an accounting period in place of financial statements.

Match the most probable matching method to the costs listed below. -Taxes owed on income earned during the current period

____________________ is the allocation of the cost of a tangible, long-term asset over its useful life.

Select the correct revenue recognition principle for each of the following. -Merchandise

What happens to the accounting equation when the adjustment that recognizes accrued interest revenue is recorded?

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Cash

Which of the following concepts is important to accrual accounting?

On January 1, 2016, ABC, Inc.purchased a copier for $9,000 cash and decided to depreciate it over 5 years.What amounts associated with the copier will appear on ABC's financial statements for the year ending December 31, 2016? $\begin{array}{l}\text {Income Statement }&\text {Statement of Cash Flows }\\\hline a.(\$1,800)&(\$9,000)\\b.(\$1,800)&\$0\\c.(\$9,000)&\$0\\d.\text { None of these choices. }\\\end{array}$