ACC 1 Ch 15 Adjustments

Revenue earned in one fiscal period but not received until a later fiscal period is called accrued revenue.

• True

• False

Revenue earned in one fiscal period but not received until a later fiscal period is called accrued interest.

• True

• False

Annual straight-line depreciation expense of a plant asset is calculated as the original cost of the plant asset divided by the years of estimated useful life.

• True

• False

Annual straight-line depreciation expense of a plant asset is calculated as the original cost of the plant asset subtracted by the salvage value and then by the dividing by the years of estimated useful life.

• True

• False

Estimated federal income tax must be paid in monthly installments.

• True

• False

Estimated federal income tax can be paid in quarterly installments.

• True

• False

All accounts are listed on the unadjusted trial balance regardless of whether there is a balance or not.

• True

• False

Functional depreciation should be considered in estimating the useful life of computer equipment.

• True

• False

For a business using the periodic inventory method, purchases are recorded in the Merchandise Inventory account.

• True

• False

For a business using the periodic inventory method, purchases are recorded in the Purchases account.

• True

• False