Rivera Accounting exam 1 with answers garded A+ 2023

One of the accounting concepts upon which adjustments for prepayments and accruals are based is: - . matchinganswersThe revenue recognition principle dictates that revenue should be recognized in the accounting records: - when it is rsIn a service - type business, revenue is considered earned: - when the service is performedanswersThe matching principle matches - . expenses with revenuesanswersWhich principle dictates that efforts (expenses) be recorded with accomplishments (revenues)? - Matching rsA flower shop makes a large sale for $1,000 on November 30. The customer is sent a statement on December 5 and a check is received on December 10. The flower shop follows GAAP and applies the revenue recognition principle. When is the $1,000 considered to be earned? - November 30answersUsing accrual accounting, expenses are recorded and reported only: - when they are incurred whether or not cash is paidanswersAn adjusting entry: - . affects a balance sheet account and an income statement accountanswersIf a resource has been consumed but a bill has not been received at the end of the accounting period, then: - an adjusting entry should be made recognizing the expenseanswersAn adjusting entry would not include which of the following accounts? - CashanswersAn adjusting entry can include a: - debit to a liability and a credit to a revenueanswersThe Village Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $2,000 on hand. The adjusting entry that should be made by the company on June 30 is - debit Laundry Supplies Expense, $4,500; credit Laundry Supplies, $4,rsA company purchased office supplies costing $3,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $600 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be: - debit Office Supplies Expense, $2,400; credit Office Supplies, $2,rsOn July 1 the Tanner Shoe Store paid $15,000 to Ace Realty for 6 months rent beginning July 1. Prepaid Rent was debited for the full amount. If