quiz4 w-answers - 1 The revenue recognition principle...

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1. The revenue recognition principle dictates that revenue is recognized in the period in which the cash is received. True Fals e Score: 1 of 1 2. The matching principle requires that expenses be recognized in the same period that they are paid. True Fals e Score: 1 of 1 3. The cash basis of accounting is in accordance with generally accepted accounting principles. True Fals e Score: 1 of 1 4. Book value is equal to cost minus accumulated depreciation. True Fals e Score: 0 of 1 5. Accrued expenses are expenses that have already
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been paid. True Fals e Score: 1 of 1 6. Closing entries produce a zero balance in each temporary account. True Fals e Score: 1 of 1 7. Cash received in advance from a customer would not cause a difference between net income and cash provided by operating activities. True Fals e Score: 1 of 1 8. A company receives their electricity bill on May 20, closes its books on May 31, sends a check in payment of the bill on June 5, and verifies the electric company received the check on June 11. Under the matching principle, the expense should be recognized on: May 31 June 11 May 20 June 5
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9. If revenues are recognized only when a customer pays, what method of accounting is being used? Matching basis Recognition basis Cash basis Accrual basis Score: 1 of 1 10. Which of the following is not a type of adjusting entry? Earned revenues Accrued revenues Prepaid expenses Accrued expenses Score: 1 of 1 11. Which of the following is not a typical example of a prepaid expense? Wages
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quiz4 w-answers - 1 The revenue recognition principle...

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