ACC 556 ASSIST Learn by Doing/acc556assist.com ACC 556 ASSIST Learn by Doing/acc556assist.com | Page 11

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?