Which of following is the best measure of performance for an accounting period?

A. Assets

B. Expenses

C. Equity

D. Net Income

Which of the following best describes an accrued expense?

A. An expense that is recognized prior to being paid

B. An expense that is paid prior to being recognized

C. An expense that is incurred but never paid

D.An expense that effects the balance sheet but not the income statement

If a company recognizes accrued salary expense

A. the employees have completed work but have not been paid.

B. the employees have worked and have been paid for the work they completed.

C. the employees have been paid but have not completed their work.

D. the employees will work in the future and will be paid in the future.

When a company incurs accrued expenses

A. the liability account, accounts payable, increases.

B. stockholders equity decreases.

C. assets are not affected.

D.all of the answers are correct.

On December 31, Year 1 Hilton Company recognized $600 of accrued salary expense. Hilton paid cash to the employees in Year 2. Which of the following shows how these events will affect Hiltons financial statements on December 31, Year 1?

Balance sheet						Income Statement					Statement of Cash Flows
	Assets	=	Liabilities	+	Equity	Rev.	-	Exp.	=	Net Inc.
A.	NA	=	(600)	+	(600)	NA	-	(600)	=	(600)	OA
B.	NA	=	600	+	(600)	NA	-	600	=	(600)	NA
C.	NA	=	600	+	600	NA	-	600	=	(600)	OA
D.	NA	=	600	+	(600)	NA	-	(600)	=	(600)	NA

A. Option A

B. Option B

C. Option C

D. Option D