Accounting Practice Exam With Verified
Answers.
A T-account is: - answera way of depicting the basic form of an account
The ledger, book of final entry, has accounts to be arranged in: - answerfinancial statement
order
Which is NOT an application of the Revenue Recognition Principle: - answera...
A T-account is: - answer✔a way of depicting the basic form of an account
The ledger, book of final entry, has accounts to be arranged in: - answer✔financial statement
order
Which is NOT an application of the Revenue Recognition Principle: - answer✔accepting CASH
from an established customer for services to be performed IN THE NEXT 3 MONTHS
Revenue Recognition Principle - answer✔revenue is recognized when it is EARNED, not when
CASH IS RECEIVED
An adjusting entry generally: - answer✔affects a BALANCE SHEET and an INCOME
STATEMENT account
Prepaid expenses are: - answer✔paid and recorded in an ASSET account before they are used
The use of cash basis violates __________ and _________ - answer✔Revenue Recognition and
Matching Principles
The entry to close Income Summary is ______ - answer✔debit IS, credit r/e
The post-closing trial balance is prepared after adjustments and ONLY contains: -
answer✔balance sheet accounts
Sales Revenue-Cost of Goods Sold= - answer✔gross profit
If a company determines cost of goods sold EACH TIME a sale occurs, it's a: -
answer✔perpetual inventory system
Harlow Company PURCHASED merchandise FROM Billford Company with freight FOB
shipping point. The freight cost will be paid by: - answer✔buyer
Income from operations is: - answer✔a multiple-step income statement
Items WAITING to be used in production are: - answer✔raw materials
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Brainbarter. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.