MBA 700 Exam 2 – Questions With Verified Solutions

MBA 700 Exam 2 Questions With Verified Solutions

Interim Period Correct Answer - Any reporting period shorter than a full
year (fiscal and calendar) and can encompass monthly, quarterly, or half-year
statements

SEC (Security and Exchange Commission Correct Answer - Federal,
independent agency that provides oversight of public companies to maintain
fair representation of company financial activities for investors to make
informed decisions

Accrual basis accounting Correct Answer - Revenues and expenses must
be recorded in the accounting period in which they were earned or incurred,
no matter when cash receipts or outlays occur

Accounting Period Correct Answer - breaks down company financial
information into specific time spans and can cover a month, quarter, half-year,
or full year

Fiscal Year Correct Answer - a twelve-month period that can begin on
any date

Deferral Correct Answer - Adjustment occurs when cash is either
collected or paid, but the related income or expense is not reportable in the
current period

Accrual Correct Answer - Adjustment that occurs when cash is not
collected or paid, but the related income or expense is reported in the current
period

Accrual Correct Answer - If an adjustment includes an entry to a payable
or receivable account

Deferral Correct Answer - If an adjustment includes an entry to
Accumulated Depreciation

Deferred Revenue (unearned revenue) Correct Answer - Rent collected
in advance is an example of what?