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 Failure to prepare an adjusting entry at the end of the period to record an accrued expense would cause :
· Question 17 At the end of the fiscal year , the usual adjusting entry for accrued salaries owed to employees was omitted . Which of the following statements is true ?
· Question 18 Can financial statements be prepared directly from the adjusted trial balance ?
· Question 19 Which statement is correct concerning the adjusted trial balance ?