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Accounting Practice Exam With Verified Answers.

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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...

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  • September 27, 2024
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Accounting Practice Exam With Verified
Answers.


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

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