Account101

What is the purpose of the Queen's Budget Model?

• To ensure resources and funding allocations are aligned with academic goals

• To encourage revenue growth and cost containment

• To manage employee salaries and benefits

• To track daily expenses and revenues

Which account type represents debts or obligations of the university?

• Liability

• Asset

• Equity

• Revenue

What is the key principle for recording revenues according to the text?

• Revenues are recorded when payment is received

• Revenues are recorded when goods are delivered

• Revenues are recorded when they have been earned

• Revenues are recorded when services are provided

Which type of account normally has a credit balance?

• Expense

• Equity

• Liability

• Asset

What is the purpose of accruals in accounting?

• To adjust for past expenses incurred

• To delay recognition of an accounting transaction

• To report a revenue or expense that has occurred

• To record future expenses in advance

What is the main function of journal entries in accounting?

• To manage revenue transfers between departments

• To track employee salaries and benefits

• To calculate the total assets of the organization

• To summarize a transaction and its effects on various accounts

What are deferred expenses in accounting?

• Expenses that were incurred but not recorded

• Expenses that were recorded but not yet paid

• Expenses that were paid in advance

• Expenses that are due in the future

What is the purpose of commitments in financial accounting?

• To manage employee benefits

• To calculate total assets

• To track daily revenues

• To represent known future expenses

Which type of account represents income generating activities?

• Asset

• Liability

• Revenue

• Equity

What is the key principle for recording expenses according to the text?

• Expenses are recorded when payment is made

• Expenses are recorded when services are provided

• Expenses are recorded when goods are delivered

• Expenses are recorded in the period in which they are incurred