22) The adjustments to record depreciation of property and equipment consists of a debit to depreciation expense and a credit to accumulated depreciation.

True

False

23)Accounts that are partly income statement amounts and partly balance sheet amounts are called mixed accounts.

True

False

24) A deferral is the recognition of an expense that has arisen but has not yet been recorded.

True

False

25)Revenue is equal to cash received by a company during an accounting period.

True

False

26)Adjusting entries are useful in appropriating costs among two or more accounting periods.

True

False

27)Recording incurred but unpaid expenses is an example of an accrual.

True

False

28)Assets become liabilities when they expire.

True

False

29)The adjusting entry to recognize earned commission revenues not previously recorded or billed will cause total assets to increase.

True

False

30)Accumulated depreciation accounts may be referred to as contra-asset accounts.

True

False

31)In recording the adjusting entries for depreciation, both accounts involved are increased.

True

False

32)A decrease in an expense account is the equivalent of a decrease in owner's equity.

True

False

33)The amount of accrued revenues is recorded by debiting an asset account and crediting an income account.

True

False

34)An asset's book value represents the true market value of the asset.

True

False

35)The adjusting entry to allocate part of the cost of one-year fire insurance policy to expense will cause total assets to increase.

True

False

36)A fiscal period must begin on January 1.

True

False

37)Every adjusting entry must change both an income statement account and a balance sheet account.

True

False

38)If the adjustment for accrued salaries is omitted, liabilities and expenses will be understated.

True

False

39)The adjusting entry to recognize earned revenues which was received in advance will cause total liabilities to decrease.

True

False

40)Book value is the original cost of a building less depreciation for the year.

True

False

41)Accrued revenues is a term used to describe revenue that has been received but not earned.

True

False

42)The adjusting entry to recognize an expense which is unrecorded and unpaid will cause total assets to increase.

True

False

43)Failure to record the adjusting entry for depreciation results in assets and owner's equity being overstated on the balance sheet.

True

False