(Solution) -ACC 205 Week 2 Chapter 3,4 Quiz and Video Quiz Updated
Academic Level: Undergrad. (yrs 3-4)
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ACC 205 Week 2 Chapter 3,4 Quiz and Video Quiz
1. The accrual basis of accounting means_______________________. Question 2. 2. Under accrual basis accounting revenue is not recognized until _________________. Question 3. 3. The matching principle states ______________________________.
Question 4. 4. Adjusting entries apply to ___________________________. Question 5. 5. Depreciation is _________________________________________. Question 6. 6. Which one of the following is not one of the seven steps in the accounting cycle? Question 7. 7. All of the following would be included as cash or cash equivalents except ____________. Question 8. 8. Which of the following is not considered a control feature for cash receipts?
Question 9. 9. Which of the following is not considered a control feature for cash disbursements?
Question 10. 10. When looking at a firm’s balance sheet if the accounts receivable account is followed by an account that reads “less Allowance for Uncollectible Accounts” a reader can assume_______.
Question 1. 1. Cash received from a customer in advance of an order being shipped is considered revenue by the firm.
Question 2. 2. If no cash is received then revenue cannot be recognized based on the matching principle. Question 3. 3. The cash account will never have an adjusting entry when closing the books.
Question 4. 4. Expenses must be paid for before they can be recognized.
Question 5. 5. The accounting cycle for a firm is considered to be one year.
1. The Historical Cost Principle divides the economic life of a business into artificial time periods.
Question 2. 2. An accounting time period that is one year long is called the fiscal year.
Question 3. 3. Under accrual accounting revenue should be recognized when cash is received. Question 4. 4. The matching principle means expenses should be recognized in the same accounting period as the revenue they helped produce. Question 5. 5. Adjusting journal entries are only necessary for revenues that are unrecognized at the end of the accounting period.
. Postage stamps would be considered a cash equivalent. Question 2. 2. A note receivable due in 16 months would be considered a cash equivalent. Question 3. 3. A good cash control is to take cash register receipts and hide them in the back room until later in the week when a bank deposit can be made. Question 4. 4. An accounts receivable is an amount due from a customer. Question 5. 5. A note receivable and an account receivable are the same thing, just with a different name. 1. Cash control refers to insuring everyone has access to the petty cash drawer so they can make change when needed. Question 2. 2. A bank reconciliation by someone external to the cash process is considered an internal control. Question 3. 3. Petty cash is the primary account for a firm to pay bills out of.
Question 4. 4. The Direct Write-off method of bad debt recognition is not recognized by GAAP as acceptable. Question 5. 5. The Allowance Method of recognizing bad debt expense is not recognized as GAAP acceptable.