Finals Activity #1| CS1

The revenues and expenses of a company are displayed in which statement?

• Balance Sheet

• Cash Flow Statement

• Income Statement

• None of the above

The expanded accounting equation is used by which statement?

• Cash Flow Statement

• Balance Sheet

• Income Statement

• None of the above

Identifying an economic transaction is which phase of accounting cycle?

• First

• Second

• Third

• Last

What are Liabilities?

• Resources of a Company

• Expenses of a Company

• Obligations of a Company

• None of the above

An account that will have a zero balance after closing entries have been journalized and posted is:

• Service Revenue

• Advertising Payable

• Prepaid Insurance

• Accumulated Depreciation

All of the following are required steps in accounting cycle except:

• Journalizing and posting entries

• Preparing financial statements

• Journalizing the transactions

• Preparing a worksheet

Adjusting entries are made to ensure that:

• Expenses are recognized in the period in which they are incurred.

• Revenues are recorded in the period in which they are earned.

• Balance sheet and income statement accounts have correct balances at the end of the accounting period.

• All of the above.

Each of the following is a major type of (or category) of adjusting entries except:

• Prepaid expenses

• Accrued revenues

• Accrued expenses

• Earned revenues

Adjustments for unearned revenues:

• Decrease liabilities and increase revenues

• Have an asset and revenue account relationship

• Increase assets and increase revenues

• Decrease revenues and decrease assets.

Adjustments for accrued revenues:

• Have a liability and revenue account relationship

• Have an asset and revenue account relationship

• Decrease assets and revenues

• Decrease liabilities and increase revenues