11.The revenue recognition concept requires that the reporting of revenue be included in the period when cash for theservice is received.
a.True
b.False
12.Revenues and expenses should be recorded in the same period to which they relate.
13.The matching concept supports matching expenses with the related revenues.
14.The updating of accounts is called the adjusting process.
15.Adjusting entries affect balance sheet accounts at the exclusion of income statement accounts.
16.Adjusting entries affect only expense and asset accounts.
17.An adjusting entry would adjust revenue so it is reported when earned and not when cash is received.
18.An adjusting entry would adjust an expense account so the expense is reported when incurred.
19.An adjusting entry to accrue an incurred expense will affect total liabilities.
20.The difference between deferred revenue and accrued revenue is that accrued revenue has been recorded andneedsadjusting and deferred revenue has never been recorded.
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