ACC205 Week 2 – Quiz: Chapters 3 & 4
Score for this attempt: 10 out of 10
This attempt took less than 1 minute.
Question 1
1 / 1 pts
The accrual basis of accounting means_______________________.
sales are recorded as cash is received
to accumulate over time, based on a natural observable increase
none of the answers listed defines the meaning of accrual accounting
gather together like transactions for more efficient entry to the accouitng system
Question 2
1 / 1 pts
Under accrual basis accounting revenue is not recognized until _________________.
The product is sold and delivered to the end customer.
A customer agrees to a price and they shake hands with the sales person
A customer purchase order is received
Cash is received
Question 3
1 / 1 pts
The matching principle states ______________________________.
all of these answers are correct relating to the matching principle
expenses that have not related to any future period should be expensed in the current period
expenses that recur should be recorded in a systematic manner
expenses associated with revenue creation should be recorded in the same period as the revenue
Question 4
1 / 1 pts
Adjusting entries apply to ___________________________.
All of these entries
Prepaids
Depreciation
Unearned revenue
ACC205 Week 2 – Quiz: Chapters 3 & 4 Answer
Question 5
1 / 1 pts
Depreciation is _________________________________________.
The valuation of assets of a business
A method to increase an assets book value
The transfer of an asset’s cost to expense over the expected useful life of the asset
The opposite of residual value
Question 6
1 / 1 pts
Which one of the following is not one of the seven steps in the accounting cycle?
Count the cash
Examine source documents
Perhaps construct a trial balance
Determine and post adjusting entries
Question 7
1 / 1 pts
All of the following would be included as cash or cash equivalents except ____________.
government T-bills
bank demand deposits
undeposited customer checks
Certificates of deposit
Question 8
1 / 1 pts
Which of the following is not considered a control feature for cash receipts?
Use point-of-sale terminals to record cash transactions
Deposit cash receipts in bank daily
The person opening the mail does not restrictively endorses checks received
The person opening the mail immediately forwards all checks to the cashier for deposit
Question 9
1 / 1 pts
Which of the following is not considered a control feature for cash disbursements?
Set up bank accounts that require dual signatures for large disbursements
Someone regularly involved in the cash business cycle should regularly reconcile bank accounts
Use formal petty cash procedures for small disbursements
All of the above are control features for cash disbursements
Question 10
1 / 1 pts
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_______.
the firm is using the cash basis of accounting
the firm is using the direct write off method for bad debts
the firm is not collecting the accounts receivable it is owed on a timely basis
the firm is using the method for bad debt write off approved by GAAP
Quiz Score: 10 out of 10
