Ch. 3 Flashcards
1
Q
When are adjusting entries required
A
at the end of every accounting period
2
Q
What increases in debit
A
Assets and Expenses
3
Q
What increases in credit
A
Liabilities and revenues
4
Q
expenses should be recognized in the same period as revenues are recorded
A
matching principle
5
Q
revenues should be recorded in the same period they are earned
A
revenue recognition principle
6
Q
Depreciation
A
the allocation of cost of plant assets to the income statement over their expected useful lifetime
7
Q
profit margin
A
net income/ net sales
8
Q
true or false GAAP requires accrual basis accounting
A
true
9
Q
A
