the ledger accounts must be adjusted to reflect a cash basis of
accounting before financial statements are prepared under generally
accepted accounting principles.
cash must be received before revenue is recognized.
events that change a company’s financial statements are recognized in
the period they occur rather than in the period in which cash is paid or
received.
Multiple Choice Question 165
Expenses paid and recorded as assets before they are used are called
accrued expenses.
interim expenses.
prepaid expenses.
unearned expenses.
Multiple Choice Question 152
The adjusted trial balance is prepared
after financial statements are prepared.
after adjusting entries have been journalized and posted.
before the trial balance.
to prove the equality of total assets and total liabilities
Multiple Choice Question 45
Management usually desires ________ financial statements and the
IRS requires all businesses to file _________ tax returns.