美国会计Chapter 3 Practice Materials.docVIP

Chapter 3—The Adjusting Process MULTIPLE CHOICE 1. The revenue recognition concept a. is in not in conflict with the cash method of accounting b. determines when revenue is credited to a revenue account c. states that revenue is not recorded until the cash is received d. controls all revenue reporting for the cash basis of accounting ANS: B DIF: Moderate OBJ: 03-01 2. The matching concept a. addresses the relationship between the journal and the balance sheet b. determines whether the normal balance of an account is a debit or credit c. requires that the dollar amount of debits equal the dollar amount of credits on a trial balance d. determines that expenses related to revenue be reported at the same time the revenue is reported ANS: D DIF: Moderate OBJ: 03-01 3. Using accrual accounting, revenue is recorded and reported only a. when cash is received without regard to when the services are rendered b. when the services are rendered without regard to when cash is received c. when cash is received at the time services are rendered d. if cash is received after the services are rendered ANS: B DIF: Moderate OBJ: 03-01 4. Using accrual accounting, expenses are recorded and reported only a. when they are incurred, whether or not cash is paid b. when they are incurred and paid at the same time c. if they are paid before they are incurred d. if they are paid after they are incurred ANS: A DIF: Moderate OBJ: 03-01 5. One of the accounting concepts upon which deferrals and accruals are based is a. matching b. cost c. price-level adjustment d. conservatism ANS: A DIF: Moderate OBJ: 03-01 6. If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the following describes the effect of the credit portion of the entry? a. decreases the balance of an owners equity account b. increases the balance of an liability account c. increases the balance of an asset account d. decreases the balance