
Chap 11: Prepayments & Accruals
Authored by Angelina Ng
Business
10th Grade
Used 84+ times

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20 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The accrual concept states that _____ during a financial period, regardless of _______.
income and expenses are recorded when they are earned and incurred respectively, when collection is received and
payment is made.
assets and liabilities are recorded , when they occurred.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
An example is utilities used in December 2018 but which has not been paid in December 2018 must be recorded in the Income Statement for the period ended 2018. This is an application of ___ concept.
Accrual
Matching
Accounting period
Objectivity
3.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
The _______ concept states that for a given financial period, only the expenses incurred to generate
the income reported during the period should be recorded in the same period.
Accrual
Matching
Accounting period
Objectivity
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
An example is freight charges incurred in delivery of goods sold must be recorded in the same financial year where the sales revenue of such sale of goods is reported in. This is an application of __ concept.
Accrual
Matching
Accounting period
Objectivity
5.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
Prepaid rent is recorded as ____ in the Balance Sheet.
Current assets
Current liabilities
6.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
Commission income received in advance is recorded as ____ in the Balance Sheet.
Current assets
Current liabilities
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Journal entry to adjust for Accrued utilities at year end: Dr__ & Cr__.
Dr Utilities (expense) Cr Accrued utilities (CL)
Dr Prepaid utilities (CA) Cr Accrued utilities (CL)
Dr Accrued utilities (CL) Cr Utilities (expense)
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