Worksheets03 Adjusting the accounts
Total questions: 6
Worksheet time: 12mins
Name
Class
Date
1.
Which of the following is not a common time period chosen by businesses as their accounting period?
a)
Daily
b)
Monthly
c)
Quarterly
d)
Annually
2.
The revenue recognition principle dictates that revenue should be recognized in the accounting records
a)
when cash is received.
b)
when it is earned.
c)
at the end of the month.
d)
in the period that income taxes are paid.
3.
In a service-type business, revenue is considered earned
a)
at the end of the month.
b)
at the end of the year.
c)
when the service is performed.
d)
when cash is received.
4.
A company spends $10 million dollars for an office building. Over what period should the cost be written off?
a)
When the $10 million is expended in cash
b)
All in the first year
c)
Over the useful life of the building
d)
After $10 million in revenue is earned
5.
Adjusting entries are required
a)
yearly.
b)
quarterly.
c)
monthly.
d)
every time financial statements are prepared.
6.
Accounts often need to be adjusted because
a)
there are never enough accounts to record all the transactions.
b)
many transactions affect more than one time period.
c)
there are always errors made in recording transactions.
d)
management can't decide what they want to report.
100 %
