Question 8 . Question : An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a ( n ): Question 9 . Question : The Income Summary account is used :
To adjust and update asset and liability accounts To close the revenue and expense accounts To determine the appropriate dividend amount In some situations to replace the income statement
To replace the retained earnings account in some businesses Question 10 . Question : The accrual basis of accounting :
Is generally accepted for external reporting since it is more useful for most business decisions
Is flawed because it gives complete information about cash flows
Recognizes revenues when received in cash Recognizes expenses when paid in cash
Eliminates the need for adjusting entries at the end of each period Question 11 . Question : On April 1 , 2011 , a company paid the $ 1,350 premium on a three-year insurance policy with benefits beginning on that date . What will be the insurance
Question 8 . Question : An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a ( n ): Question 9 . Question : The Income Summary account is used :
To adjust and update asset and liability accounts To close the revenue and expense accounts To determine the appropriate dividend amount In some situations to replace the income statement
To replace the retained earnings account in some businesses Question 10 . Question : The accrual basis of accounting :
Is generally accepted for external reporting since it is more useful for most business decisions
Is flawed because it gives complete information about cash flows
Recognizes revenues when received in cash Recognizes expenses when paid in cash
Eliminates the need for adjusting entries at the end of each period Question 11 . Question : On April 1 , 2011 , a company paid the $ 1,350 premium on a three-year insurance policy with benefits beginning on that date . What will be the insurance