Ferg - Acctg Test 9/13/2018

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the:

• Income Statement

• Statement of Cash Flows

• Balance Sheet

• Owner's Equity

Under the accrual basis of accounting, expenses are reported in the accounting period when the:

• Expense matches the revenue or is used up

• Cash is paid

• Cash is received

• Expenses matches liabilities or is used up

Assets are usually reported on the balance sheet at which amount?

• Cost of the asset

• Current market value

• Expected selling price

• Average sales price

Liabilities often have the word __________ in their account title.

• Payable

• Cost

• Die

• Received

Unearned Revenues is what type of account?

• Liability

• Asset

• Expense

• Equity

The listing of all of the accounts available for use in a company's accounting system is known as the __________.

• Chart of accounts

• Company's equity report

• Income Statement

• Accounts of balance

In January when the company receives the $2,000 from the customer, which account should the company credit?

• Accounts receivable

• Service revenue

• Liabilities

• Income

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as __________.

• Assets

• Liabilities

• Revenues

• Equity

Obligations (amounts owed) are reported on the balance sheet and are referred to as __________.

• Liabilities

• Equity

• Expenses

• Assets

Why are accruals needed every month?

• To report the revenues, receivables, expenses, and liabilities which were earned during the month, but not recorded.

• To make an end-of-the-month entry so debits and credits balance.

• To report cash received and cash spend but not previously recorded.

• None of these.