1. Which of the following is not a condition for reporting revenue?
The goods or services have been delivered.
The customer has already paid for the good or service.
The price is fixed or determinable.
Collection is reasonably assured.
Which of the following trial balances is used as the source for preparing
the financial statements?
Unadjusted trial balance
Pre-adjusted trial balance
Adjusted trial balance.
Post-closing trial balance.
At the end of the accounting period:
all accounts are closed.
temporary accounts are closed; permanent accounts are not.
permanent accounts are closed; temporary accounts are not.
only accounts with a credit balance are closed.
Company A receives $10,000 in advance this month for work to be
performed next month. This month, the company should:
Debit Cash $10,000 and credit Service Revenue $10,000.
Debit Cash $10,000 and credit Unearned Revenue $10,000.
Debit Cash $10,000 and credit Accounts Payable $10,000.
Debit Accounts Payable $10,000 and credit Cash $10,000.
Which of the following accounts would normally never be affected by an
Sparkling Pools received a bill for $1,200 for running newspaper ads during
the last two weeks of July; the bill will be paid on August 1. Advertising
expense should be:
credited for $1,200 in July.
credited for $1,200 in August.
debited for $1,200 in July.
debited for $1,200 in August.
The Don't Tread on Me Tire Company had retained earnings at December 31,
2010 of $200,000. During 2011, the company had revenues of $400,000
and expenses of $350,000, and the company declared and paid dividends of
$11,000. Retained earnings on the balance sheet as of December 31, 2011
If all steps in the closing process have been performed correctly, which of
the following accounts will be reflected with zero balances?
All of the above
In December 2010, Asler, Inc. performs consulting services. The client does
not pay Asler until January, 2011.
Under the accrual basis the revenue is reported for January 2011.
Under the cash basis the revenue is reported for December 2010.
Under the accrual basis the revenue is reported for December 2010.
Under the accrual basis the revenue is reported when Asler's expenses
The cash account had a beginning balance of $68,900. During the month the
account was credited $16,000 and debited $18,300. At the end of the
month, the balance in the cash account is
a debit balance of $2,300.
a credit balance of $2,300.
a debit balance of $71,200.
a credit balance of $66,600.