36.

Temporary accounts

• are listed on the balance sheet because they show how revenues and expenses have affected the owner's equity account.
• are classified as asset, liability and owner's equity accounts.
• are accounts whose balances are not carried over from accounting period to another.
• are accounts which show the actual worth of the company at a specific point in time.

37.

In which of the following ways has technology changed accounting?

• It provides the accountant with a scapegoat should something go wrong.
• It has allowed for greater and easier portability of financial records.
• Accountants no longer need to understand or know all accounting principles as computer programs can do the work for them.
• It has completely eliminated the need to print piles and piles of documents.

38.

A _____ tells you what the bank balance was at the beginning of the month, the deposits the bank has on record for the account, the withdrawals that have been made from the account, and the ending balance of the account on a specific date.

balance statement

account statement

bank statement

check register

39.

Which of the following events precipitated the creation of the Securities and Exchange Commission?

• The Enron Scandal
• The Stock Market Crash of 1929
• The Dot-Com Bubble
• The 1937-38 Recession

40.

You are a portrait photographer, who recently sold a $1200 portrait package to one of your clients. That invoice is due to be paid in 30 days. Which type of adjustment is this?

• deferred expense
• accrued revenue
• accrued expense
• deferred revenue