Question 1

Under the cash basis of accounting,no adjustments are made for prepaid,unearned,and accrued items.

Accepted Answer

A) True 
 B)False

Question 2

The length of time covered by periodic financial statements and other reports is the:

Accepted Answer

A)  Fiscal year. 
B)  Natural business year. 
C)  Accounting period. 
D)  Business cycle. 
E)  Operating cycle. 
A)  Fiscal year. 
B)  Natural business year. 
C)  Accounting period. 
D)  Business cycle. 
E)  Operating cycle.

Question 3

Which of the following statements is incorrect?

Accepted Answer

A)  An adjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments. 
B)  Interim financial reports can be based on one-month or three-month accounting periods. 
C)  The fiscal year is any 12 consecutive months used by a business as its annual accounting period. 
D)  Property,plant,and equipment are long term assets. 
E)  The cash basis of accounting is consistent with GAAP. 
A)  An adjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments. 
B)  Interim financial reports can be based on one-month or three-month accounting periods. 
C)  The fiscal year is any 12 consecutive months used by a business as its annual accounting period. 
D)  Property,plant,and equipment are long term assets. 
E)  The cash basis of accounting is consistent with GAAP.

Question 4

The natural business year can only be used when the seasonal variation in sales does not match the calendar year.

Accepted Answer

A) True 
 B)False

Question 5

Discuss the purpose of an adjusted trial balance.

Accepted Answer

An adjusted trial balance is a

Question 6

An unadjusted trial balance is a listing of accounts prepared before adjustments are recorded.

Accepted Answer

A) True 
 B)False

Question 7

Internal transactions often include cash payments.

Accepted Answer

A) True 
 B)False

Under the cash basis of accounting,no adjustments are made for prepaid,unearned,and accrued items.

The length of time covered by periodic financial statements and other reports is the:

Which of the following statements is incorrect?

The natural business year can only be used when the seasonal variation in sales does not match the calendar year.

Discuss the purpose of an adjusted trial balance.

An unadjusted trial balance is a listing of accounts prepared before adjustments are recorded.

Internal transactions often include cash payments.

Accounting in Business

Analyzing and Reporting Transactions

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters

Exam 3: Adjusting Accounts for Financial Statements

Under the cash basis of accounting,no adjustments are made for prepaid,unearned,and accrued items.

The length of time covered by periodic financial statements and other reports is the:

Which of the following statements is incorrect?

The natural business year can only be used when the seasonal variation in sales does not match the calendar year.

Discuss the purpose of an adjusted trial balance.

An unadjusted trial balance is a listing of accounts prepared before adjustments are recorded.

Internal transactions often include cash payments.

Accounting in Business

Analyzing and Reporting Transactions

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters