Accounting 2

The term “recognition” means to

The term “accrual” describes an earnings event that is

The cost of a resource that will produce revenue in the

Adjusting entries never affect a business’s Cash account.

An adjusting entry to accrue salary expense is a

Revenues are temporary accounts, but liabilities are not

In the closing process, the amounts in temporary accounts are moved to

Immediately after closing, every temporary account has a balance of

Accounts that are closed include expenses and
dividends

After closing, the only accounts with non-zero balances are

Two of the steps in the accounting cycle are adjusting the accounts and closing the accounts.

Cash-basis accounting often fails to match expenses with revenues.

The matching concept leads accountants to select the recognition alternative that produces the lowest amount of net income.

A company sometimes recognizes a revenue or expense, even though the corresponding cash collection or payment does not occur in the same accounting period.

The collection of an account receivable is a claims exchange transaction.

Providing services to customers on account is an

An adjusting entry that decreases Unearned Service Revenue and increases Service Revenue is a claims exchange transaction.

Revenue is the economic benefit derived from operating a business.

Often, the recognition of revenue is accompanied by an increase in liabilities.

Realization means

an example of an accrual

The entry to recognize salary expense incurred but not yet paid involves which of
the following?

Recording accrued salary expense at the end of an accounting period causes an increase in
Salaries Expense and

Which of the following costs is considered an expense?

Which of the following costs is considered an asset?

The adjustment to record the completion of services for which clients had paid in
advance would involve which of the following?

If a company purchases supplies on account, this transaction would cause

Sort cash, accounts payable, common stock, land, accounts receivable

Recognition of revenue may result in which of the following?

Which of the following financial statement elements is closed at the end of an
accounting cycle?

Which of the following accounts would not be closed at the end of an accounting
cycle?

The matching concept refers to the "matching" of:

The result of the matching process is best reported on which financial statement?

Which of the following accounts is a permanent account?

asset source transaction

asset exchange transaction

Revenue

All asset use transactions do what

The assets and services consumed to generate revenue are called

assets=

asset source transaction

asset exchange transactions

asset use transactions

income statement

If expenses are greater than revenues, the difference is called

The practice of pairing revenues with expenses on the income statement is called the

balance sheet

statement of cash flows

financing activities include

investing activities involve

operating activities involve

At the end of the accounting period, revenue, expense, and dividend accounts data is moved to

transferring account balances into retained earnings is called

since revenue, expense, and dividend accounts are closed each period, they are called

--------- is a permanent account, bebcause it carries forward from one accounting period to the next