Acctg 12/12/18

XYZ Trucking rents trucks to ABC Computer Firm, who uses them to deliver their computer products. However, XYZ Trucking has yet to receive payment for the rentals. From an accounting perspective, what is this called?

• Accounts Receivable

• Deferred Expenses

• Accrued Expenses

• Interest Revenue

What method of accounting reports revenue when it is earned and expenses when they are incurred regardless of when revenue is received or expenses paid?

• Accrual accounting

• Expense accounting

• Regular accounting

• Cash basis accounting

Which accounting method is best for keeping track of cash inflows and cash outflows?

• Cash Basis

• Cash flow basis

• Accrual Basis

• Income Basis

The report that lists all the accounts of a company and their balances after all adjustments and closing entries have been made is called the _____.

• post-closing trial balance

• adjustment report

• adjusted trial balance

• trial balance

Sarah is an accountant for ABC Water Company. She is working on her closing entries for the company. In order to do her closing entries, she needs to see all the company's accounts and the balances of those accounts. What does Sarah need?

• Trial balance

• Statement of accounts

• Revenue statement

• Loss statement

Which financial statement utilizes the majority of the accounts on the adjusted trial balance but does not use expenses?

• Balance sheet

• Income statement

• Statement of retained earnings

• Post-adjusted trial balance

Suzie received a bill at the end of the second quarter, which she will not pay until the third quarter. What type of account adjustment is this?

• Accrued expense

• Deferred revenue

• Deferred expense

• Accrued revenue

Suzie is an accountant making a debit entry to the income summary account and a credit entry to the retained earnings account. What is she doing?

• Closing the income summary account

• Opening the income summary account

• Creating a REID account

• Creating a permanent account

Which financial statement details dividends, retained earnings, and current retained earnings?

• Retained earnings statement

• Reserved earnings statement

• Income statement

• Owner's equity statement

Which type of accounts have balances that are not carried over from one accounting period to another?

• Temporary

• Short-term

• Permanent

• Adjusted