Question 1

Adjustments which are necessary because cash for expenses is paid in advance or cash from income is pre-collected are called:

Accepted Answer

A) accruals. 
B) deferrals/prepayments. 
C) contras. 
D) unrecorded adjustments. 
A) accruals. 
B) deferrals/prepayments. 
C) contras. 
D) unrecorded adjustments.

Question 2

The income statement columns on the worksheet are not equal because:

Accepted Answer

A) a mistake has been made in the adjustments section. 
B) the columns have not been added up correctly. 
C) the unadjusted trial balance was incorrect. 
D) the difference is the profit or loss for the period. 
A) a mistake has been made in the adjustments section. 
B) the columns have not been added up correctly. 
C) the unadjusted trial balance was incorrect. 
D) the difference is the profit or loss for the period.

Question 3

The cash approach to profit measurement will not give a reliable profit figure for an entity that conducts a significant portion of its business:

Accepted Answer

A) overseas. 
B) with subsidiaries. 
C) with borrowed money. 
D) on credit. 
A) overseas. 
B) with subsidiaries. 
C) with borrowed money. 
D) on credit.

Question 4

An account that is always deducted from a related account is known as a:

Accepted Answer

A) carrying account. 
B) temporary account. 
C) contra account. 
D) negative account. 
A) carrying account. 
B) temporary account. 
C) contra account. 
D) negative account.

Question 5

Current assets may be listed in the balance sheet in the order of their liquidity.Liquidity is:

Accepted Answer

A) another name for the operating cycle. 
B) a measure of how many buyers there are for the asset. 
C) whether the asset is secured over a liability. 
D) the average length of time it takes to convert an asset into cash. 
A) another name for the operating cycle. 
B) a measure of how many buyers there are for the asset. 
C) whether the asset is secured over a liability. 
D) the average length of time it takes to convert an asset into cash.

Adjustments which are necessary because cash for expenses is paid in advance or cash from income is pre-collected are called:

The income statement columns on the worksheet are not equal because:

The cash approach to profit measurement will not give a reliable profit figure for an entity that conducts a significant portion of its business:

An account that is always deducted from a related account is known as a:

Current assets may be listed in the balance sheet in the order of their liquidity.Liquidity is:

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Cash Management and Control

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Filters

Exam 4: Adjusting the Accounts and Preparing Financial Statements

Adjustments which are necessary because cash for expenses is paid in advance or cash from income is pre-collected are called:

The income statement columns on the worksheet are not equal because:

The cash approach to profit measurement will not give a reliable profit figure for an entity that conducts a significant portion of its business:

An account that is always deducted from a related account is known as a:

Current assets may be listed in the balance sheet in the order of their liquidity.Liquidity is:

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Cash Management and Control

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Filters