.
True
False
Recording all revenues when cash was received
Applying the matching rule
Recognizing expense when incurred
Adjusting the accounts
All of the above
No, there are sometimes good reasons why they differ
Yes, except where the trial balance is extracted at the year end
Yes, always
No, because it is not a balance sheet
Be classsified as a long term liability
Not be separated from the long term portion of debt
Be paid immediately
Be reclassified as a current liability
Increase an Asset Account
Decrease an Asset Account
Increase a Liability Account
Increase Owner's Equity
When the cash is collected, regardless of when the services are performed
When the services are performed, regardless of when the cash is received
Either when the cash is received or the sale is made
Prepared by the Manager
Closing entries
Prepared at the beginning of the accounting period to update all accounts.
Prepared at the end of the accounting period to update certain accounts.
Expense
Liability
Asset
Contra asset
Unearned expense
Prepaid expense
Accrued expense
Accrued revenue
Adjustments
Unadjusted trial balance
Ledger
Adjusted trial balance
Before it has been earned
When the cash is received
When it has been earned
Whenever the company needs to record the revenue
Unearned expense
Prepaid expense
Liability
Unearned asset
Cash and receivables
Cash and payables
Land and Building
Retained earnings
Accumulated Depreciation
Equipment
Depreciation Expense
Depreciation Payable
Contra-expense account
Liability account
Contra-asset account
Expense account
True
False
To update the accounts in the books
To apply the matching principle
To properly reflect the the correct net income
To make the equation A=L+C more accurate
All of the above
Revenue
Purchases
Asset
Expenses
Revenue
Assets
Sources of fund
Liability
Asset
Owner's Equity (Capital)
Liability
Revenue & Expenses
P0
P5,000
P10,000
P15,000
P20,000
P 6,000
P26,000
P14,000
Debit supplies of P150 and a credit of P150 to Supplies Expense
Debit supplies Expense of P150 and a credit of P150 to Supplies
Debit supplies Expense of P650 and a credit of P650 to Supplies
There is not enough information given to prepare the entry
P9000
P6000
P3000
P0
P1800
P3600
P5400
P0
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