Exam -Chapters 3 and 4 MULTIPLE CHOICE. Select the choice that best completes the statement or answers the question-4 pts each 1) Which of the following statements is TRUE of accrual basis accounting? A) Accrual basis accounting always results in greater net income than cash basis accounting B) Accrual basis accounting is required by Generally Accepted Accounting Principles (GAAP) C) Accrual basis accounting records expenses only when cash has been paid for them D) Accrual basis accounting records revenue only when cash is received. 2)Which of the following accounts would be used under d, accrual basis of accounting, but n under cash basis accounting? 2)_ - A) Salaries Expense C) Service Revenue B) Cash D) Uneaned Revenue 3) The accounting principle that ensures all expenses are recorded during the period when they are 3) incurred and offsets those principle. expenses against the revenues of the period is called the A) comparison C) accrual B) matching D) revenue recognition 4) Revenue is earned when 4) A) the business has received cash from the customer B) there is a binding agreement to provide goods or services C) (or as) the business satisfies each performance obligation D) the journal entry to record revenue has been prepared 5) Adjusting entries are needed to correctly measure the A) net income (loss) on the balance sheet C) net income (loss) on the income statement B) beginning balance in the Cash account D) ending balance in the Cash account 6) The asset account, Office Supplies had a beginning balance of $5700. During the accounting 6) period, office supplies were purchased, on account, for $5100. A physical count, on the last day of the accounting period, shows $2000 of office supplies on hand. What is the amount of Supplies Expense for the accounting period? A) $3700 B) $5100 C) $8800 D) $2600 7) 7) A depreciable asset's cost minus accumulated depreciation is called A) depreciable value C) book value B) accrued expense D) residual value rvices Company performed accounting services for a client in December. A bill was the following accounts should appear on the balance sheet as of December 31 as related to the D) None, there is no entry in December. anuary 5 Which of mailed to the client on December 30. The company received a check by mail on J services performed? B) Uneaned Revenue A) Prepaid Expense C) Accounts Receivable