· Question 6
Management usually wants ________ financial statements and the
IRS requires all businesses to file _________ tax returns.
· Question 7
A flower shop makes a large sale for $1,000 on November 30. The
customer is sent a statement on December 5 and a check is received on
December 10. The flower shop follows GAAP and applies the revenue
recognition principle. When is the $1,000 considered to be recognized?
· Question 8
Which statement is correct?
· Question 9
Given the data below for a firm in its first year of operation, determine
net income under the cash basis of accounting.
Cash received from customers
$48,000
Accounts receivable
12,000
Cash paid for expenses
26,000
Accounts payable (related to expenses)
3,000
Prepaid rent for next period
7,000
· Question 10
Accrued expenses are:
· Question 11
If a resource has been consumed but a bill has not been received at the
end of the accounting period, then:
· Question 12
Depreciation is the process of:
· Question 13
If a company fails to adjust a Prepaid Rent account for rent that has
expired, what effect will this have on that month's financial
statements?
· Question 14
Why do generally accepted accounting principles require the
application of the revenue recognition principle?
· Question 15
Which of the following would not result in unearned revenue?
· Question 16