Accounting chapter 4

What is an accrued expense?

• reports financial data from Jan 1 to Dec 31 of a specific year.

• revenue earned in a period but not yet recorded, and no money has been collected.

• expense incurred in a period but not yet recorded, and no money has been paid.

Reports financial data from January 1 to December 31 of a specific year.

On which financial statement would the Supplies account appear?

• Retained Earnings Statement

• Income Statement

• Statement of Cash Flows

• Balance Sheet

When money is not received or paid but the associated income or expense is reportable for the current period, what form of adjustment takes place?

• accrual

• estimate

• cull

• deferral

Which of the following defines a 12-month reporting cycle that can start in any month other than January 1 and keeps track of financial information for the exact same 12-month span?

• fiscal year

• interim period

• calendar year

• fixed year

Which of the following can include monthly, quarterly, or half-year statements and is any reporting period shorter than a full year (fiscal or calendar)?

• fiscal year

• fixed year

• calendar year

• interim period

Which of the following accounting methods requires that, regardless of when cash collections or outlays occur, revenues and expenses be reported in the accounting period in which they were earned or incurred?

• revenue basis accounting

• tax basis accounting

• accrual basis accounting

• cash basis accounting

Which form of adjustment is it, if it includes an entry to Accumulated Depreciation?

• accrual

• deferral

• estimate

• cull

Rent paid in advance is an example of which of the following?

• accrued expense

• accrued revenue

• deferred expense (prepaid expense)

• deferred revenue (unearned revenue)

A interim period is a 12 month reporting cycle that can begin in any month, and records financial data for that 12 month consecutive period.

• True

• False

Answer explanation

This is actually a fiscal period. An interim period is any reporting period shorter than a full year.