D Question 2 Adjusting entries are made after preparation of trial balance to come up with the adjusted trial balance. O Test choice] Do not select this option. Correct answer will be given after the schedule of final exam False True Question 3 Adjusting entries are prepare in order to update the balances of accounts in the financial statements. Test choice] Do not select this option. Correct answer will be given after the schedule of final exam O FALSE O TRUE Question 4 The expense recognition (matching) principle requires that expenses get recorded when cash is paid. Test choice] Do not select this option. Correct answer will be given after the schedule of final exam O TRUE O FALSE 1 pts 1 pts 1 pts. U Question 5 The accrual basis of accounting is a system in which revenues are recorded when earned and expenses are recorded when incurred. O [Test choice] Do not select this option. Correct answer will be given after the schedule of final exam O TRUE FALSE Question 6 Adjusting entries are required to correct accounting errors. O Test choice] Do not select this option. Correct answer will be given after the schedule of final exam TRUE O FALSE Question 7 Accrued expenses recognizes an expense and a liability. O TRUE [Test choice] Do not select this option. Correct answer will be given after the schedule of final exam O FALSE 1 pts 1 pts 1 pts Question 8 Accrued revenues recognizes a receivable and an income. O FALSE [Test choice] Do not select this option. Correct answer will be given after the schedule of final exam O TRUE Question 9 Expenses that are paid in advance but are not yet incurred are accrued expenses. [Test choice] Do not select this option. Correct answer will be given after the schedule of final exam O FALSE O TRUE Question 10 Revenues collected in advance but are not yet rendered/earned are deferred revenues. OTRUE O fest choice Do not select this option. Correct answer will be given after the schedule of final exam O FALSE 1 pts 1 pts 1 pts Question 11 Failure to record depreciation expense will overstate assets and expenses. O FALSE O Test choice] Do not select this option. Correct answer will be given after the schedule of final exam O TRUE Question 12 Accumulated depreciation is a contra-asset account, thereby resulting to a decrease in the accounts receivable. O TRUE [Test choice] Do not select this option. Correct answer will be given after the schedule of final exam O FALSE Question 13 Asset less the related accumulated depreciation is called the Book value. O FALSE O TRUE O Test choice] Do not select this option, Correct answer will be given after the schedule of final exam 1 pts 1 pts. 1 pts Question 14 Accounts receivable less allowance for uncollectible accounts is equal to the net realizable value. O TRUE O FALSE O [Test choice] Do not select this option. Correct answer will be given after the schedule of final exam Question 15 Property, plant and equipment such as furniture, computer, building, land are subject to depreciation. O FALSE O TRUE O Test choice Do not select this option. Correct answer will be given after the schedule of final exam Question 16 In preparing the financial statements from the worksheet, income statement (statement of comprehensive income) must be prepared first before the balance sheet (statement of financial position). OTRUE O [Test choice] Do not select this option. Correct answer will be given after the schedule of final exam O FALSE 1pts 1 pts. 1 pts 0 0 Question 17 1 pts In preparing the worksheet, if the debit balances are greater than the credit balances in the Income statement (Statement of comprehensive Income), the operation resulted to a loss. TRUE O Test choice! Do not select this option. Correct answer will be given after the schedule of final exam O FALSE Question 18 In preparing the worksheet, if the debit balances are greater than the credit balances in the Balance sheet (Statement of financial position), the operation resulted to a loss. TRUE O Test choice) Do not select this option. Correct answer will be given after the schedule of final exam O FALSE 1 pts Question 19 1 pts: The accounting cycle include analyzing transactions, joumalizing, posting, preparing an unadjusted trial balance, recording adjusting entries, preparation of adjusted trial balance and preparation of financial statements. OTRUE O FALSE O Test choice Do not select this option. Correct answer will be given after the schedule of final exam Question 20 Assets can be classified as current or non-current depending upon the expected period in which it can be used. O [Test choice] Do not select this option. Correct answer will be given after the schedule of final exam O TRUE O FALSE Question 21 To compute for the net income of a merchandising business: SALES XX LESS: COST OF GOODS SOLD XX GROSS PROFIT XX ADD: OTHER EXPENSES XX LESS: OTHER REVENUES XX NET INCOME XX O FALSE O Test choice] Do not select this option. Correct answer will be given after the schedule of final exam O TRUE 1 pts. 1 pts Question 22 To come up with the ending balances of the capital: Beginning capital add investments add revenues less expenses less withdrawals. O [Test choice; Do not select this option. Correct answer will be given after the schedule of final exam O FALSE O TRUE Question 23 The three main activities in the cash flows are Operating, Investing and Financing. O TRUE O FALSE Test choice Do not select this option. Correct answer will be given after the schedule of final exam Question 24 Financial statements comprises of the following: 1. Statement of comprehensive income 2. Statement of financial position 3. Statement of changer in owner's equity 4. Statement of cash flows OTRUE O FALSE 1 pts 1 pts 1 pts