ACCOUNTING MULTIPLE CHOICE QUESTIONS

Which of the following accounting principles dictates when expenses are recognized? A. Revenue recognition principle B. Business entity principle C. Matching principle D. Full disclosure principle A parcel of land is: offered for sale at $150,000, assessed for tax purposes at $95,000, recognized by its purchasers as being worth $140,000 and purchased for $137,000. The land should be recorded in the purchaser's books at: A. $95,000 C. $137,000 B. $140,000 D. $150,000 Revenues are: A. The same as net income B. Resources owned or controlled by a company C. Increases in retained earnings from a company's earning activities D. The costs of assets or services used A record of the increases and decreases in a specific asset, liability, equity, revenue or expense is a(n): A. Journal C. Posting B. Trial balance D. Account An accounting ledger is a: A. record containing increases and decreases in a specific asset, liability, equity, revenue or expense item B. journal in which transactions are first recorded C. collection of documents that describe transactions and events during the accounting process D. list of all accounts with their debit balances at a point in time