Accounting 2000 Letitia Lowe-Ardoin Exam questions
with answers| ACCURATE ANSWERS2026!!!!!
Accrual-basis accounting - ANSWERS💫✔️-Accounting basis in which companies record, in the periods
in which the events occur, transactions that change a company's financial statements, even if cash
was not exchanged.
accrued expenses - ANSWERS💫✔️-expenses incurred but not yet paid in cash or recorded
Accrued revenues - ANSWERS💫✔️-revenues for services performed but not yet received in cash or
recorded
Adjustments - ANSWERS💫✔️-Changes made to accounts at the end of an accounting period to ensure
that the revenue recognition and expense recognition principles are followed.
Book value - ANSWERS💫✔️-the difference between the cost of a depreciable asset and its related
accumulated depreciation
Cash-basis accounting - ANSWERS💫✔️-Accounting basis in which a company records revenue only
when it receives cash and an expense only when it pays cash.
Contra asset account - ANSWERS💫✔️-an account that is offset against an asset account on the balance
sheet
Depreciation - ANSWERS💫✔️-The process of allocating the cost of an asset to expense over its useful
life.
Expense recognition principle - ANSWERS💫✔️-.The principle that companies recognize expense in the
period in which they make efforts (consume assets or incur liabilities) to generate revenue.
Fiscal year - ANSWERS💫✔️-an accounting period that is one year long
, Periodicity assumption - ANSWERS💫✔️-An assumption that the economic life of a business can be
divided into artificial time periods.
Prepaid expenses (prepayments) - ANSWERS💫✔️-expenses paid in cash before they are used or
consumed
Revenue recognition principle - ANSWERS💫✔️-The principle that companies recognize revenue in the
accounting period in which the performance obligation is satisfied.
Unearned revenues - ANSWERS💫✔️-cash received and a liability recorded before services are
performed
Useful life - ANSWERS💫✔️-The length of service of a productive asset
Bank reconciliation - ANSWERS💫✔️-The process of comparing the bank's account balance with the
company's balance, and explaining the differences to make them agree.
Bank statement - ANSWERS💫✔️-a statement received monthly from the bank that shows the
depositor's bank transactions and balances
Bonding - ANSWERS💫✔️-obtaining insurance protection against theft by employees
Cash - ANSWERS💫✔️-Resources that consist of coins, currency, checks, money orders, and money on
hand or on deposit in a bank or similar depository.
Cash budget - ANSWERS💫✔️-A projection of anticipated cash flows, usually over a one- to two-year
period.
Cash equivalents - ANSWERS💫✔️-Short-term, highly liquid investments that can be readily converted
to a specific amount of cash and which are relatively insensitive to interest rate changes.
with answers| ACCURATE ANSWERS2026!!!!!
Accrual-basis accounting - ANSWERS💫✔️-Accounting basis in which companies record, in the periods
in which the events occur, transactions that change a company's financial statements, even if cash
was not exchanged.
accrued expenses - ANSWERS💫✔️-expenses incurred but not yet paid in cash or recorded
Accrued revenues - ANSWERS💫✔️-revenues for services performed but not yet received in cash or
recorded
Adjustments - ANSWERS💫✔️-Changes made to accounts at the end of an accounting period to ensure
that the revenue recognition and expense recognition principles are followed.
Book value - ANSWERS💫✔️-the difference between the cost of a depreciable asset and its related
accumulated depreciation
Cash-basis accounting - ANSWERS💫✔️-Accounting basis in which a company records revenue only
when it receives cash and an expense only when it pays cash.
Contra asset account - ANSWERS💫✔️-an account that is offset against an asset account on the balance
sheet
Depreciation - ANSWERS💫✔️-The process of allocating the cost of an asset to expense over its useful
life.
Expense recognition principle - ANSWERS💫✔️-.The principle that companies recognize expense in the
period in which they make efforts (consume assets or incur liabilities) to generate revenue.
Fiscal year - ANSWERS💫✔️-an accounting period that is one year long
, Periodicity assumption - ANSWERS💫✔️-An assumption that the economic life of a business can be
divided into artificial time periods.
Prepaid expenses (prepayments) - ANSWERS💫✔️-expenses paid in cash before they are used or
consumed
Revenue recognition principle - ANSWERS💫✔️-The principle that companies recognize revenue in the
accounting period in which the performance obligation is satisfied.
Unearned revenues - ANSWERS💫✔️-cash received and a liability recorded before services are
performed
Useful life - ANSWERS💫✔️-The length of service of a productive asset
Bank reconciliation - ANSWERS💫✔️-The process of comparing the bank's account balance with the
company's balance, and explaining the differences to make them agree.
Bank statement - ANSWERS💫✔️-a statement received monthly from the bank that shows the
depositor's bank transactions and balances
Bonding - ANSWERS💫✔️-obtaining insurance protection against theft by employees
Cash - ANSWERS💫✔️-Resources that consist of coins, currency, checks, money orders, and money on
hand or on deposit in a bank or similar depository.
Cash budget - ANSWERS💫✔️-A projection of anticipated cash flows, usually over a one- to two-year
period.
Cash equivalents - ANSWERS💫✔️-Short-term, highly liquid investments that can be readily converted
to a specific amount of cash and which are relatively insensitive to interest rate changes.
