Accounting Practice Exam Questions & Answers 2023/2024

Accounting Practice Exam Questions & Answers 2023/2024 A T-account is: - ANSWER-a way of depicting the basic form of an account The ledger, book of final entry, has accounts to be arranged in: - ANSWER-financial statement order Which is NOT an application of the Revenue Recognition Principle: - ANSWER-accepting CASH from an established customer for services to be performed IN THE NEXT 3 MONTHS Revenue Recognition Principle - ANSWER-revenue is recognized when it is EARNED, not when CASH IS RECEIVED An adjusting entry generally: - ANSWER-affects a BALANCE SHEET and an INCOME STATEMENT account Prepaid expenses are: - ANSWER-paid and recorded in an ASSET account before they are used The use of cash basis violates __________ and _________ - ANSWER-Revenue Recognition and Matching Principles The entry to close Income Summary is ______ - ANSWER-debit IS, credit r/e The post-closing trial balance is prepared after adjustments and ONLY contains: - ANSWER-balance sheet accounts Sales Revenue-Cost of Goods Sold= - ANSWER-gross profit If a company determines cost of goods sold EACH TIME a sale occurs, it's a: - ANSWER-perpetual inventory system