Accounting Chapter 3

23 Questions | By War3324 | Updated: Jan 30, 2013 | Attempts: 583

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1.

The difference between the cost of a fixed asset and its accumulated depreciation.
- A.
  
  Contra accounts (or contra asset account)
- B.
  
  Book value of the assets (or net book value)
- C.
  
  Adjusted trail balance
- D.
  
  Unearned revenues
Correct Answer
B. Book value of the assets (or net book value)
2.

This is what accumulated depreciation accounts are called because they are deducted from their related fixed asset accounts on the balance sheet.
- A.
  
  Depreciation expense
- B.
  
  Fixed assets
- C.
  
  Adjusted trail balance
- D.
  
  Contra accounts (or contra asset accounts)
Correct Answer
D. Contra accounts (or contra asset accounts)
3.

Normal balance of an accumlated depreciation accounts is a debit or a credit?
- A.
  
  Debit
- B.
  
  Credit
Correct Answer
B. Credit
4.

Happens after the adjusting entries are posted and verifies the equality of the total debit and credit balances before the financial statements are prepared.
- A.
  
  Adjusted process
- B.
  
  Adjusted trail balance
- C.
  
  Fixed assets
- D.
  
  Accrual basis of accounting
Correct Answer
B. Adjusted trail balance
5.

Under this basis of accounting, revenues and expenses are reported in the income statement in the period in which they are earned or incurred; to determine the proper period, accountants use generally accepted accounting principles (GAAP) which requires the _________________.
- A.
  
  Accrual basis of accounting
- B.
  
  Matching concept(or matching principle)
- C.
  
  Cash basis of accounting
- D.
  
  Adjusting trail balance
Correct Answer
A. Accrual basis of accounting
6.

The accounting concept supporting this reporting of revenues is called the ______________.
- A.
  
  Revenue recognition concept
- B.
  
  Accounting period concept
- C.
  
  Matching concept (or matching principle)
- D.
  
  Cash basis of accounting
Correct Answer
A. Revenue recognition concept
7.

The accounting concept supporting reporting revenues and related expenses in the same period is called ___________.
- A.
  
  Revenue recognition concept
- B.
  
  Accounting period concept
- C.
  
  Matching concept(or matching principle)
- D.
  
  Accrual basis of accounting
Correct Answer
C. Matching concept(or matching principle)
8.

When preparing financial statements, the economic life of the business is divided into time periods,______________ requires that revenue and expenses be reported in the proper period.
- A.
  
  Accounting period concept
- B.
  
  Matching concept
- C.
  
  Revenue recognition concept
- D.
  
  Cash basis of accounting
Correct Answer
A. Accounting period concept
9.

As a fixed asset depreciates, a portion of its cost should be recorded as an expense, this periodic expense is called _________________.
- A.
  
  Depreciation
- B.
  
  Depreciation expense
- C.
  
  Depreciate
- D.
  
  Adjusting entries
Correct Answer
B. Depreciation expense
10.

As time passes, equipment loses its ability to provide useful services-- the decrease in usefulness is _________.
- A.
  
  Depreciation expense
- B.
  
  Depreciation revenue
- C.
  
  Depreciation
- D.
  
  Depreciate
Correct Answer
C. Depreciation
11.

As a fixed assets, EXPECT LAND, lose their usefulness are then called ___________.
- A.
  
  Depreciate
- B.
  
  Depreciation expense
- C.
  
  Accumulated depreciation
- D.
  
  Accrued expense
Correct Answer
A. Depreciate
12.

The contra assets account credited when recording the depreciation of a fixed asset
- A.
  
  Depreciation
- B.
  
  Depreciation expense
- C.
  
  Accumulated depreciation
- D.
  
  Depreciation revenue
Correct Answer
C. Accumulated depreciation
13.

_____________ are physical resources that are owned and used by a business and are permanent or have a long life. EXAMPLES: LAND, BUILDING, AND EQUIPMENT
- A.
  
  Adjusting entries
- B.
  
  Fixed assets
- C.
  
  Accrued expenses
- D.
  
  Prepaid expenses
Correct Answer
B. Fixed assets
14.

___________ are unrecorded expenses that have been incurred and for which cash has yet to be paid. EXAMPLES: WAGES OWED TO EMPLOYEES AT THE END OF A PERIOD BUT NOT YET PAID.
- A.
  
  Fixed assets
- B.
  
  Accrued expenses
- C.
  
  Prepaid expenses
- D.
  
  Depreciated expenses
Correct Answer
B. Accrued expenses
15.

_________ are the advance receipt of future revenues and are recorded as liabilities when cash is recieved.
- A.
  
  Accrued revenues
- B.
  
  Unearned revenues
- C.
  
  Prepaid expenses
- D.
  
  Accrued expenses
Correct Answer
B. Unearned revenues
16.

_________ are the advance payment of future expenses and are recorded as assets when cash is paid.
- A.
  
  Accrued expenses
- B.
  
  Prepaid expenses
- C.
  
  Unearned revenue
- D.
  
  Fixed assets
Correct Answer
B. Prepaid expenses
17.

The journal entries that bring the accounts up to date at the end of the accounting period.
- A.
  
  Unearned revenues
- B.
  
  Prepaid expenses
- C.
  
  Adjusting entries
- D.
  
  Accrued expenses
Correct Answer
C. Adjusting entries
18.

The analysis and updating of accounts at the end of the period before the financial statements are prepared.
- A.
  
  Adjusting process
- B.
  
  Matching concept
- C.
  
  Cash basis of accounting
- D.
  
  Accounting period concept
Correct Answer
A. Adjusting process
19.

________ are unrecorded revenues taht have been earned and for which cash has yet to be received. EXAMPLES: FEES FOR SERVICES THAT AN ATTORNEY OR A DOCTOR HAS PROVIDED BUT NOT YET BILLED.
- A.
  
  Unearned revenues
- B.
  
  Fixed assets
- C.
  
  Accrued revenues
- D.
  
  Adjusting process
Correct Answer
C. Accrued revenues
20.

What requires adjusted entry at the end of the period?
- A.
  
  Accured expense and prepaid exspenses
- B.
  
  Accured expense and accured revenue
- C.
  
  Prepaid expenses and unearned expenses
- D.
  
  Unearned expenses and accured revenue
Correct Answer
B. Accured expense and accured revenue
21.

What requires journal entries in the beginning and adjusting entry at the end?
- A.
  
  Prepaid expense and accured expense
- B.
  
  Accured expense and accured revenue
- C.
  
  Prepaid expense and unearned revenue
- D.
  
  Unearned revenue and accured expense
Correct Answer
C. Prepaid expense and unearned revenue
22.

ACCURED ----> ____________?

Correct Answer
earned
23.

CASH BASIS-----> ____________?

Correct Answer
received or paid

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Current Version
Jan 30, 2013

Quiz Edited by
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Oct 10, 2011

Quiz Created by
War3324

Accounting Chapter 3

The difference between the cost of a fixed asset and its accumulated depreciation.

This is what accumulated depreciation accounts are called because they are deducted from their related fixed asset accounts on the balance sheet.

Normal balance of an accumlated depreciation accounts is a debit or a credit?

Happens after the adjusting entries are posted and verifies the equality of the total debit and credit balances before the financial statements are prepared.

Under this basis of accounting, revenues and expenses are reported in the income statement in the period in which they are earned or incurred; to determine the proper period, accountants use generally accepted accounting principles (GAAP) which requires the _________________.

The accounting concept supporting this reporting of revenues is called the ______________.

The accounting concept supporting reporting revenues and related expenses in the same period is called ___________.

When preparing financial statements, the economic life of the business is divided into time periods,______________ requires that revenue and expenses be reported in the proper period.

As a fixed asset depreciates, a portion of its cost should be recorded as an expense, this periodic expense is called _________________.

As time passes, equipment loses its ability to provide useful services-- the decrease in usefulness is _________.

As a fixed assets, EXPECT LAND, lose their usefulness are then called ___________.

The contra assets account credited when recording the depreciation of a fixed asset

_____________ are physical resources that are owned and used by a business and are permanent or have a long life. EXAMPLES: LAND, BUILDING, AND EQUIPMENT

___________ are unrecorded expenses that have been incurred and for which cash has yet to be paid. EXAMPLES: WAGES OWED TO EMPLOYEES AT THE END OF A PERIOD BUT NOT YET PAID.

_________ are the advance receipt of future revenues and are recorded as liabilities when cash is recieved.

_________ are the advance payment of future expenses and are recorded as assets when cash is paid.

The journal entries that bring the accounts up to date at the end of the accounting period.

The analysis and updating of accounts at the end of the period before the financial statements are prepared.

________ are unrecorded revenues taht have been earned and for which cash has yet to be received. EXAMPLES: FEES FOR SERVICES THAT AN ATTORNEY OR A DOCTOR HAS PROVIDED BUT NOT YET BILLED.

What requires adjusted entry at the end of the period?

What requires journal entries in the beginning and adjusting entry at the end?

ACCURED ----> ____________?

CASH BASIS-----> ____________?