1- The matchingobjetivesdirectsaccountants as to when to record expenses on the income statement to be matched against liabilities on the balance sheet

True or False

2- An important fact related to accrual accounting is that

Select one

_ adjusting entries are notrequired

_ expenses are recorded whenincurred

_ revenue is recorded when cash isreceived

_ revenue is recorded when cash isreceivedand expenses are recorded whenincurred

3- The concept that requires that accountants record amortization expense onequipment is the

Select one

_ time period assumption

_ cost principle

_ matchingobjective

_ recognition criteria for revenue

4- Accrual accounting records the effects of every businesstransactionsas it occurs

True or False

5- Accrued expenses are expenses that have been

Select one

_ paid but notincurred

_ paid andincurred

_ not paid butincurred

_ not paid and notincurred

6- The adjusting entry to record $500 of expired insurance would include a debit to insurance expense

True or False

7- The adjusting entry to record accrued salaries includesa debit to salary expense

True or False

8- Failure to record an accrued revenue

Select one

_ overstatesliabilities

_ overstatesassets

_ understatesassets

_ overstatesrevenue

9-Ifaaccrued expense adjustment had not been made, the financial statement would have been affected as follows

Select one

_net incomeunderstated,assetsoverstated,liabilitiesunderstatedandowners'equityunaffected

_ net income overstated, assetsoverstated, liabilitiesunderstatedandowners'equityoverstated

_ net income overstated, assets unaffected, liabilities understated andowners'equityoverstated

_ net income understated, assetsoverstated,liabilitiesunaffectedandowners'equityunderstated