ACC 556 STR Course Great Wisdom / tutorialrank.com ACC 556 STR Course Great Wisdom / tutorialrank.com | Page 13

· 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)
Prepaid rent for next period

3,000
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?