Acc 201 Self Assessment
1. The accrual basis of accounting: (Points : 1) Is generally accepted for external reporting because it is more useful for most business decisions Is flawed because it gives complete information about cash flows Recognizes revenues when received in cash Recognizes expenses when paid in cash Eliminates the need for adjusting entries at the end of each period
2. The 12-month period that ends when a company's activities are at their lowest point is called the: (Points : 1) Fiscal year Calendar year Natural business year Accounting period Interim period
3. An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n): (Points : 1) Accrued expense Contra account Accrued revenue Intangible asset Adjunct account
4. Adjusting entries: (Points : 1) Affect only income statement accounts Affect only balance sheet accounts Affect both income statement and balance sheet accounts Affect only cash flow statement accounts Affect only equity accounts
5. A post-closing trial balance reports: (Points : 1) All ledger accounts with balances, none of which can be temporary accounts All ledger accounts with balances, none of which can be permanent accounts All ledger accounts with balances, which include some temporary and some permanent accounts Only revenue and expense accounts Only asset accounts
6. A trial balance prepared before any adjustments have been recorded is: (Points : 1) An adjusted trial balance Used to prepare financial statements An unadjusted trial balance Correct with respect to proper balance sheet and income statement amounts Only prepared once a year
7. Kader Co. paid a
2. The 12-month period that ends when a company's activities are at their lowest point is called the: (Points : 1) Fiscal year Calendar year Natural business year Accounting period Interim period
3. An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n): (Points : 1) Accrued expense Contra account Accrued revenue Intangible asset Adjunct account
4. Adjusting entries: (Points : 1) Affect only income statement accounts Affect only balance sheet accounts Affect both income statement and balance sheet accounts Affect only cash flow statement accounts Affect only equity accounts
5. A post-closing trial balance reports: (Points : 1) All ledger accounts with balances, none of which can be temporary accounts All ledger accounts with balances, none of which can be permanent accounts All ledger accounts with balances, which include some temporary and some permanent accounts Only revenue and expense accounts Only asset accounts
6. A trial balance prepared before any adjustments have been recorded is: (Points : 1) An adjusted trial balance Used to prepare financial statements An unadjusted trial balance Correct with respect to proper balance sheet and income statement amounts Only prepared once a year
7. Kader Co. paid a