Chapter 3 Test Questions.docx - Chapter 3 Test Questions 1 In general accountants measure income using an approach based on Transactions 2 Which concept

Chapter 3 Test Questions.docx - Chapter 3 Test Questions 1...

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Chapter 3 Test Questions 1.In general, accountants measure income using an approach based on: 2.Which concept holds that an organization's life can be divided into discrete accounting periods (months, quarters, years)? 3.The periodicity assumption seems practical and logical; however, it introduces allocation problems when dividing the life of a company into specific units of time. 4.Under the accrual basis of accounting, revenue should be recognized at the time services are rendered or when goods are sold and delivered to a customer. 5.Business expenses should be recognized in the same period as the revenues they helped to produce. This concept is known as the: 6.Adjusting entries are necessary to fulfill the goals of proper income measurement and are consistent with the cash basis of accounting. 7.The recording and accounting for prepaid expenses, depreciation, and similar items is consistent with the adjusting process for: 8.Revenues and expenses that gradually accumulate throughout an accounting period are known as:
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