For more course tutorials visit www. uophelp. com
Chapter 4 Quiz Question 1 The revenue recognition principle dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied.
Question 2 An adjusting entry to a prepaid expense is required to recognize expired expenses.
Question 3 Unearned revenue is a prepayment that requires an adjusting entry when services are performed.
· Question 4 When closing entries are prepared, each income statement account is closed directly to retained earnings.
· Question 5 The accounting cycle begins with the journalizing of the transactions
· 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?