Accounting test 2 c answers - Test 2 Chapters 3 and 4 1....

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Test 2Chapters 3 and 41.Under accrual basis accounting revenues are recognized when cash is
2.According to the revenue recognition concept, revenues should be
3.
4.
5.Net income is equal to the amount of cash the business generated
6.Adjusting entries should be made before financial statements are
7.When a company purchases equipment which will be used over manyyears to generate revenue, the company should make an adjustingjournal entry at the end of the period which reduces the equipment
8.
9.
10.
11.Permanent accounts are not closed at the end of the accounting period.
12.If revenues are greater than expenses then the income summary will
13.Closing entries are necessary in order to transfer the end-of-periodbalances in the revenue, expense, and withdrawals accounts to owner's

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Chapter 3 / Exercise EX3-25
Accounting
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Term
Spring
Professor
Logorda
Tags
Accounting, Revenue, Revenue Recognition, Generally Accepted Accounting Principles, insurance policy, adjusting journal entry
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Accounting
The document you are viewing contains questions related to this textbook.
Chapter 3 / Exercise EX3-25
Accounting
Reeve/Warren
Expert Verified

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