Deck2

Question 1

Which accounting basis recognizes uncollected sales? Accrual or Cash

Answer 1

Accrual

Question 2

Which method of accounting recognizes the liability of accrued expenses before it is paid?

Answer 2

Accrual

Question 3

What is the equation for supplies expense

Answer 3

Supplies Expense = Beg Supplies Inv + Supplies Purchased - Ending Supplies Inv

Question 4

Current Assest should be collectible within _____ fiscal year(s).

Answer 4

One

Question 5

Which of these two can be used to prepare financial statement other than GAAP?
A. Basis used for tax reporting
B. Cash receipts and disbursments

Answer 5

Both

Question 6

Expense A for 2001 that is billed for 2002 is recognizable in 2001 or 2002?

Answer 6

2001

Question 7

Modified Cash Accounting is modified for what?

Answer 7

Capitalization of long lived assets and or certain accruals/defferrals

Question 8

Should the nondeductible portion of business expenses from taxes, be included as an expense on the income statement?

Answer 8

Yes