Question 11 pts

Select the purpose of capitalizing certain costs of doing business when they are incurred and then, over subsequent accounting cycles, depreciated or amortized.

Group of answer choices

Reduction of federal income tax liability.

Matching production costs with revenues as recognized.

Meeting requirements of the accounting constraint of conservatism.

Assistance with cash flow analysis.

Flag question: Question 2

Question 21 pts

Select the accrued expense.

Group of answer choices

Computers bought at the beginning of the year, debited to an expense account

Property taxes incurred during the year, to be paid in the first quarter of the following year

Any depreciation expense

Rent recognized during the period, to be received at the end of the year

Flag question: Question 3

Question 31 pts

Select the real (permanent) account.

Group of answer choices

Prepaid rent

Sales

Accounts receivable

Both prepaid rent and accounts receivable

Flag question: Question 4

Question 41 pts

An adjusting entry should never include ________.

Group of answer choices

a credit to a liability account and a debit to an expense account

a credit to a revenue account and a debit to an expense account

a credit to a revenue account and a debit to a liability account

a credit to a liability account and a debit to a revenue account

Flag question: Question 5

Question 51 pts

Which is the term for revenue collected and recorded in advance of delivering a good or providing a service?

Group of answer choices

Accrued

Unearned

Prepaid

Cash

Flag question: Question 6

Question 61 pts

Which account should a journal entry to record the receipt of rent revenue in advance include?

Group of answer choices

Debit to rent revenue

Credit to rent revenue

Credit to unearned rent

Credit to cash

Flag question: Question 7

Question 71 pts

In the accounting cycle, the last step is preparing the ________.

Group of answer choices

closing entries

trial balance

financial statements

adjusting entries

Flag question: Question 8

Question 81 pts

What is the term for an expense which has been incurred, but not yet paid?

Group of answer choices

Adjusted

Estimated

Deferred

None of these

Flag question: Question 9

Question 91 pts

Which of these cannot be determined by a trial balance?

Group of answer choices

Whether an amount was entered in an incorrect account

Whether a transaction was entered more than once

Whether a transaction was omitted

A trial balance cannot determine any of these.

Flag question: Question 10

Question 101 pts

Which of the following is a temporary account?

Group of answer choices

Utility expense

Inventory

Retained earnings

Unearned revenue