SELF STUDY CHAPTER 3

SELF STUDY CHAPTER 3 - 7. C They equal 750 on each side. 8....

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Brittney Acevedo Professor Abatemarco Self Study Questions Chapter 3 1. C The time period assumption states that accountants divide the economic life of a business into artificial time periods. 2. C The time period assumption states that accountants divide the economic life of a business into artificial time periods. 3. D Revenue recognition principle shows you don’t need cash to increase for revenue to increase. 4. A The matching principle states efforts be matched with accomplishments. 5. D Adjusting entries ensure that the revenue recognition and matching principles are followed. 6. D Earned revenues are not a major of adjusting entries.
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Unformatted text preview: 7. C They equal 750 on each side. 8. C Adjustments for prepaid decrease assets and increase expenses. 9. A Accumulated Depreciation is a contra asset account. 10. C Depreciation expense is debited 1000, delivery equipment is credited 1000. 11. A Adjustments for unearned revenues decrease liabilities and increase revenues. 12. B Adjustments for accrued revenues have an asset and revenues account relationship. 13. B Salaries expense is debited 400 and salaries payable is credited 400. 14. C Adjusted trial balances lists the account balances as deferrals or accruals. 15. A Debit supplies 800 and credit supplies expense 800....
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