Recent Exam 2026-2027 Actual Complete Real Exam Questions And
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The Journal - ANSWER -the "book of original entry" where the
company initially
records transactions and selected
other events
The Ledger - ANSWER -the group of accounts maintained by a
company
Posting - ANSWER -transferring information from a journal
entry to a ledger
account
Time Period Assumption - ANSWER -the economic life of a
business can be
divided into artificial time
periods
Fiscal Year - ANSWER -accounting time period that is one year
in length
, Calendar Year - ANSWER -January 1 to December 31
Accrual Basis Accounting - ANSWER -reporting income when
it is earned and
expenses when they are
incurred
Cash Basis Accounting - ANSWER -Reporting income
when the cash is
received and expenses when the
cash is paid.
Revenue Recognition Principle - ANSWER -recognize
revenue in the
accounting period on which the obligation
is satisfied
Expense Recognition Principle - ANSWER -Match expenses
with revenues in
the period when the company makes efforts to generate
those revenues
Matching Principle - ANSWER -managing revenues and
expenses
Adjusting Entries - ANSWER -required for financial
statements; includes one