Accounting II - Chapter 15 Test Review

Revenue earned in one fiscal period but not received until a later fiscal period.

• Actual revenue

• Adjusted revenue

• Accrued revenue

Which other account is used to adjust the Merchandise Inventory account at the end of a fiscal period?

• Income Summary

• Income Statement

• Retained Earnings

Original cost - accumulated depreciation = ___________ of a plant asset

• Book value

• Depreciation value

• Salvage value

The value of the insurance coverage used in a fiscal period is recorded as a debit to:

• Insurance Expense

• Prepaid Insurance

A physical inventory is always conducted at the end of each:

• Week

• Month

• Fiscal year

Which accounting concept is applied when recording depreciation expenses?

• Accounting Period Cycle

• Matching Expenses with Revenue

Adjusting the Merchandise Inventory account is done in both service businesses and merchandising businesses.

• True

• False

The difference between an asset's account balance and its related contra account is called:

• Book value

• Accrued value

• Salvage value

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

• True

• False

A business usually chooses to end its fiscal period during their busiest time of year.

• True

• False