Multiple Choice Questions

Using accrual accounting revenue is recorded and reported only
  • When they are incurred, whether or not cash is paid
  • After the income statement and before the balance sheet
  • Depreciation expense reflects the decrease in market value each year.
  • When the services are rendered without regard to when cash is received
Using accrual accounting, expenses are recorded and reported only
  • When they are incurred, whether or not cash is paid
  • When the services are rendered without regard to when cash is received
  • After the income statement and before the balance sheet
  • All real accounts are closed at the end of the period.
Unearned revenue is what type of an account?
  • Not earned but the cash has been received
  • Liability
  • Liabilities
  • Fees Earned
Accrued revenues would appear on the balance sheet as
  • Liabilities
  • Not earned but the cash has been received
  • Liability
  • Assets
The general term employed to indicate an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is
  • Deferral
  • Accrual
  • Book value
  • Accruals
Depreciation Expense and Accumulated Depreciation are classified, respectively, as
  • contra asset, expense
  • The net income or net loss for the period
  • Unearned Rent
  • Expense and Contra asset
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Multiple Choice Questions
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