Adjusting Entries quiz Financial Accounting Quiz On Mar 16, 2024 Share /10 12345678910 Adjusting Entries 10 questions in 10 minutes Answers at the end of the exam Pass Score 70% enter full-screen mode by pressing the icon located in the top- right comer of the exam 1 / 10 Adjusting entries are made to ensure that : revenues are recorded in the period in which services are performed balance sheet and income statement accounts have correct balances at the end of an accounting period All the responses above are correct expenses are recognized in the period in which they are incurred 2 / 10 The revenue recognition principle states that : the economic life of a business can be divided into artificial time periods revenue should be recognized in the accounting period in which a performance obligation is satisfed the fiscal year should correspond with the calendar year expenses should be matched with revenues 3 / 10 The principle or assumption dictating that efforts (expenses) be matched with accomplishments (revenues) is the : expense recognition principle revenue recognition principle cost assumption time period assumption 4 / 10 Which item is a constraint in fnancial accounting ? Materiality Cost Consistency Comparability 5 / 10 Each of the following is a major type (or category) of adjusting entries except : accrued expenses prepaid expenses accrued revenues recognized revenues 6 / 10 Which of the following statements about the accrual basis of accounting is false ? Revenue is recorded only when cash is received,and expense is recorded only when cash is paid Revenue is recognized in the period in which services are performed Events that change a company’s financial statements are recorded in the periods in which the events occur This basis is in accord with generally accepted accounting principles 7 / 10 Adjustments for unearned revenues : increase assets and increase revenues decrease revenues and decrease assets have an assets and revenues account relationship decrease liabilities and increase revenues 8 / 10 Adjustments for accrued revenues : decrease liabilities and increase revenues have an assets and revenues account relationship decrease assets and revenues have a liabilities and revenues account relationship 9 / 10 Accumulated Depreciation is : a contra asset account an expense account a liability account an owner’s equity account 10 / 10 Adjustments for prepaid expenses : decrease revenues and increase assets decrease assets and increase expenses decrease assets and increase revenues decrease expenses and increase assets Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback Question topics Adjusting Entries the accrual basis of accounting Adjusting entries for deferrals Adjusting entries for accruals accountingaccounting adjusting entriesaccounting adjusting entries quiz