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WorksheetsAdvanced Accounting Chpt 9
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
Which accounting concept applies to the concept: Accounting records for each period must show all information needed to prepare the financial statements of a business.
a)
Realization of Revenue
b)
Consistent Reporting
c)
Matching Expenses with Revenue
d)
Adequate Disclosure
2.
Some expenses, such as insurance and advertising, require cash payment before the benefit is received.
a)
TRUE
b)
FALSE
3.
Which accounting concept applies to the concept: Interest owed in the current period must be included in the financial statements of the current period.
a)
Realization of Revenue
b)
Consistent Reporting
c)
Matching Expenses with Revenue
d)
Adequate Disclosure
4.
A written and signed promise to pay a sum of money at a specified time is called a(n)
a)
check
b)
promissory note
c)
purchase order
d)
bill
5.
Promissory notes signed by a business and given to creditors are called
a)
invoices
b)
bills
c)
notes due
d)
notes payable
6.
The original amount of a note is called notes payable.
a)
TRUE
b)
FALSE
7.
The date a note is due is called the _________________ of a note.
a)
deadline
b)
due date
c)
maturity date
d)
expiration date
8.
An amount paid for the use of money for a period of time is called
a)
finance charges
b)
interest
c)
surcharges
d)
usage fee
9.
The interest accrued on money borrowed is called
a)
interest expense
b)
accrued expense
c)
finance charges
d)
late fees
10.
The original amount of a note payable is known as the
a)
interest amount
b)
principal amount
c)
maturity value
d)
term of the note
11.
The amount that is due on the due date of a note payable is called the
a)
interest amount
b)
principal amount
c)
maturity value
d)
term of the note
12.
The interest rate of a note is stated as a(n) _________ rate.
a)
weekly
b)
daily
c)
monthly
d)
annual
13.
Expenses paid in one fiscal period but not reported as expenses until a later fiscal period are called accrued expenses.
a)
TRUE
b)
FALSe
14.
Prepaid expenses may be recorded initially as assets or expenses.
a)
TRUE
b)
FALSE
15.
Prepaid expenses are assets until they are actually used.
a)
TRUE
b)
FALSE
16.
An entry made at the beginning of one fiscal period to reverse an adjusting entry made in the previous fiscal period is called a(n)
a)
Adjusting entry
b)
contra-adjusting entry
c)
zeroing entry
d)
reversing entry
17.
If an adjusting entry creates a balance in an asset or a liability account, the adjusting entry is reversed.
a)
TRUE
b)
FALSE
18.
A reversing entry is the exact opposite of the related adjusting entry.
a)
TRUE
b)
FALSE
19.
Expenses incurred in one fiscal period but not paid until a later fiscal period are called prepaid expenses.
a)
TRUE
b)
FALSE
20.
Which accounting concept applies to the concept: Financial statements must show all the business expenses for a fiscal period.
a)
Objective Evidence
b)
Adequate Disclosure
c)
Consistent Reporting
d)
Matching Expenses with Revenue
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