1.

LO 4.1Which of the following is any reporting period shorter than a full year (fiscal or calendar) and can encompass monthly, quarterly, or half-year statements?

1. fiscal year
2. interim period
3. calendar year
4. fixed year

2.

LO 4.1Which of the following is the federal, independent agency that provides oversight of public companies to maintain fair representation of company financial activities for investors to make informed decisions?

1. IRS (Internal Revenue Service)
2. SEC (Securities and Exchange Commission)
3. FASB (Financial Accounting Standards Board)
4. FDIC (Federal Deposit Insurance Corporation)

3.

LO 4.1Revenues and expenses must be recorded in the accounting period in which they were earned or incurred, no matter when cash receipts or outlays occur under which of the following accounting methods?

1. accrual basis accounting
2. cash basis accounting
3. tax basis accounting
4. revenue basis accounting

4.

LO 4.1Which of the following breaks down company financial information into specific time spans, and can cover a month, quarter, half-year, or full year?

1. accounting period
2. yearly period
3. monthly period
4. fiscal period

5.

LO 4.1Which of the following is a twelve-month reporting cycle that can begin in any month, except January 1, and records financial data for that twelve-month consecutive period?

1. fixed year
2. interim period
3. calendar year
4. fiscal year

6.

LO 4.2Which type of adjustment occurs when cash is either collected or paid, but the related income or expense is not reportable in the current period?

1. accrual
2. deferral
3. estimate
4. cull

7.

LO 4.2Which type of adjustment occurs when cash is not collected or paid, but the related income or expense is reportable in the current period?

1. accrual
2. deferral
3. estimate
4. cull

8.

LO 4.2If an adjustment includes an entry to a payable or receivable account, which type of adjustment is it?

1. accrual
2. deferral
3. estimate
4. cull

9.

LO 4.2If an adjustment includes an entry to Accumulated Depreciation, which type of adjustment is it?

1. accrual
2. deferral
3. estimate
4. cull

10.

LO 4.2Rent collected in advance is an example of which of the following?

1. accrued expense
2. accrued revenue
3. deferred expense (prepaid expense)
4. deferred revenue (unearned revenue)

11.

LO 4.2Rent paid in advance is an example of which of the following?

1. accrued expense
2. accrued revenue
3. deferred expense (prepaid expense)
4. deferred revenue (unearned revenue)