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    Question
    Question 1. Question : Depreciation Expense and Accumulated Depreciation are classified respectively as
    expense and contra asset
    asset and contra liability
    revenue and asset
    contra asset and expense
    Question 2. Question : Which type(s) of adjustments are the financial statements affected by?
    Deferrals
    Accruals
    Both deferrals and accruals
    Neither deferrals nor accruals
    Question 3. Question : Accumulated depreciation is __________ to get the carrying value.
    added to equipment
    subtracted from equipment
    added to accounts payable
    subtracted from accounts payable
    Question 4. Question : The accounting equation is the basis for analyzing summarizing and recording transactions in accounting. The accounting equation is:
    Assets =Liabilities
    Assets = Liabilities + Stockholders Equity
    Liabilities = Assets + Stockholders Equity
    Stockholders Equity = Liabilities + Assets
    Question 5. Question : Accrual accounting records revenue when:
    Earned
    Cash is received
    Products are completed
    Salaries are paid
    Question 6. Question : On the balance sheet Accrued expenses are ordinarily reported as:
    Fixed assets
    Prepaid expenses
    Assets
    Liabilities
    Question 7. Question : What are the four timing differences between recognizing revenues and expenses between accrual basis and cash basis accounting?
    Accrued revenue accrued expenses deferred revenue deferred expenses
    Cash revenue expenses and liabilities
    Accounts receivable accounts payable long term liabilities intangible assets
    Revenue expenses assets retained earnings
    Question 8. Question : When cash is received in payment of an account receivable which section of the Statement of Cash Flows is affected?
    Cash Flow from Operating Activities
    Cash Flow from Investing Activities
    Cash Flow from Financing Activities
    There is no effect on the Statement of Cash Flows.
    Points Received: 0 of 2
    Question 9. Question : After recording transactions for the accounting period which financial statement does a company prepares statement first?
    Income statement
    Balance sheet
    Retained earnings statement
    Statement of cash flows
    Question 10. Question : X&M Co. provided services of $2000000 to clients on account. How does this transaction affect A&M’s accounts?
    Increase accounts receivable and cash by $2000000 each
    Increase accounts receivable and unearned revenues by $2000000 each
    Increase cash and decrease accounts receivable by $2000000 each
    Increase accounts receivable and revenues by $2000000 each
    Question 11. Question : Cash receipts from interest and dividends are classified as
    investing activities
    operating activities
    either financing or investing activities
    financing activities
    Question 12. Question : ___________ is an example of a deferred expense.
    Unearned revenue
    Accounts payable
    Prepaid advertising
    Accounts receivable
    Question 13. Question : Using accrual accounting expenses are recorded and reported only
    When they are incurred and paid at the same time
    When they are incurred whether or not cash is paid
    If they are paid before they are incurred
    If they are paid after they are incurred
    Question 14. Question : Which of the following is an example of a deferred expense?
    Prepaid advertising
    Unearned revenue
    Accounts payable
    Accounts receivable
    Question 15. Question : Which transaction would be recorded in a cash basis system of accounting?
    Purchase of equipment on credit
    Purchase of supplies on credit
    Sale of goods on credit
    Sale of goods for cash
    Question 16. Question : Accrued revenues would appear on the balance sheet as
    assets
    liabilities
    stockholders’ equity
    prepaid expenses
    Question 17. Question : Using accrual accounting expenses are recorded and reported only when they are incurred whether or not cash is paid under the cash basis expenses are recorded:
    When they are incurred and paid at the same time
    If they are paid before they are incurred
    If they are paid after they are incurred
    When they are paid
    Question 18. Question : When preparing an adjustment under accrual accounting what would be the proper amount of the adjusting entry if the end of the period balance in the supply account is $4000 and the amount of supplies on hand is $1650?
    3350
    2350
    3050
    5650
    Points Received: 0 of 2
    Question 19. Question : __________ is/are created when a revenue or expense has NOT been recorded by the end of the accounting period.
    Prepaid advertising
    Premiums received in advance
    Unearned revenue
    Accruals
    Question 20. Question : If prepaid insurance expires over time this asset account becomes a (n)
    liability
    another asset
    revenue
    expense

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