Chapter 3

Question 1

Interim Reports

Answer 1

cover 1, 3, or 6 month periods

Question 2

fiscal year period

Answer 2

consisting if any 1w consecutive months

Question 3

accrual basis

Answer 3

recognizes revenues and expenses when they are earned or incurred

Question 4

cash basis

Answer 4

revenue and expenses when cash is received or paid

Question 5

Accounting cycle 1-4

Answer 5

1. Analyze transaction 2. record in journal 3. post to the ledger 4. prepare unadjusted trial balance

Question 6

Accounting cycle 5-9

Answer 6

5. adjust accounts 6. adjust trial balance 7. prepare financial statement 8. close entries 9. post closing trial