Question

1.Accrual accounting refers to the convention of reporting revenue in the period revenue is considered to be _______________ and expenses in the period they are considered to be incurred.

2.Accrual accounting refers to the convention of reporting revenue in the period revenue is considered to be _______________ and expenses in the period they are considered to be incurred.

3.In accounting the term used to describe the left-side of a T-account is the _______________ side.

4.

For a company that owns depreciable assets, recording depreciation expense at the end of the period in preparation for creating financial statements for the period is an example of

a.an adjusting entry.

b,a closing entry.

c,an unnecessary entry.

d,a chronological entry.

5,

Year-end current liabilities and current expenses would be understated as a result of a failure to record which of the following adjusting entries?

a.Accounts receivable that are uncollectible

b.The expiration of prepaid insurance

c.Accrued wages due and unpaid at year-end

d.None of the above

Answer 1

1.Accrual accounting refers to the convention of reporting revenue in the period revenue is considered to be Earned and expenses in the period they are considered to be incurred.

2.Accrual accounting refers to the convention of reporting revenue in the period revenue is considered to be Earned and expenses in the period they are considered to be incurred.

3.In accounting the term used to describe the left-side of a T-account is the Debit side.

4. For a company that owns depreciable assets, recording depreciation expense at the end of the period in preparation for creating financial statements for the period is an example of option (a).an adjusting entry.

5. Year-end current liabilities and current expenses would be understated as a result of a failure to record which of the following adjusting entries?

option (c).Accrued wages due and unpaid at year-end