Balance 22 unearned revenue is a prepayment that

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Financial Accounting: The Impact on Decision Makers
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Chapter 4 / Exercise 3
Financial Accounting: The Impact on Decision Makers
Norton/Porter
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balance.22________Unearned revenue is a prepayment that requires an adjusting entry when servicesare performed.4-2
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Financial Accounting: The Impact on Decision Makers
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Chapter 4 / Exercise 3
Financial Accounting: The Impact on Decision Makers
Norton/Porter
Expert Verified
A Further Look at Financial Statements23________A contra asset account is subtracted from a related account in the balance sheet.24________Depreciation is a valuation concept.25________A depreciable asset’s original cost typically will be shown on the balance sheet.26________Financial statements can be prepared from the information provided by an adjustedtrial balance.27________Cash is a temporary account.28________The post-closing trial balance will contain only permanent—balance sheet—accounts.29________Accounts receivable is a permanent account.30________Financial statements must be prepared before the closing entries are made.31________In the accounting cycle, closing entries are prepared before adjusting entries.32________Closing entries result in the transfer of net income or net loss into the RetainedEarnings account.33________The post closing trial balance will have fewer accounts than the adjusted trialbalance.34________The accounting cycle begins with the journalizing of the transactions.MULTIPLE CHOICE QUESTIONS35________The time period assumption states that
36________One of the accounting concepts upon which adjustments for prepayments andaccruals are based is
37.______ An accounting time period that is one year in length is called
4-3
Test Bank for Financial Accounting: Tools for Business Decision Making38.______ Management usually wants ________ financial statements and the IRS requires allbusinesses to file _________ tax returns.a.annual, annualb.monthly, annualc.quarterly, monthlyd.monthly, monthly39.______ In general, the shorter the time period, the difficulty of making the proper adjustments to
accounts
notgenerally an accounting time period?

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