ACC 290 Week 2 Practice Quiz
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Which accounts normally have debit balances?
|Assets, liabilities, and dividends|
|Assets, dividends, and expenses|
|Assets, expenses, and retained earnings|
|Assets, expenses, and revenues|
Which of the following is the correct sequence of events?
|Analyze a transaction; record it in the journal; post it to the ledger|
|Record a transaction in the journal; analyze the transaction; post it to the ledger|
|None of the answer choices provides the correct sequence|
|Analyze a transaction; post it to the ledger; record it in the journal|
Where is the first place every transaction is recorded?
|In the ledger|
|In the respective accounts|
|In the basic accounting equation|
|In the journal|
What type of account is unearned revenue?
Accounts are listed on the trial balance in
|the order that they appear in the ledger.|
|the order in which they are posted.|
The generally accepted accounting principle which dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied is the
|revenue recognition principle.|
|accrued revenues principle.|
|expense recognition principle.|
Which statement is correct?
|As long as a company consistently uses the cash-basis of accounting, generally accepted accounting principles allow its use.|
|The use of the cash-basis of accounting violates both the revenue recognition and expense recognition principles.|
|The cash-basis of accounting is objective because no one can be certain of the amount of revenue until the cash is received.|
|As long as management is ethical, there are no problems with using the cash-basis of accounting.|
Adjustments for unearned revenues
|decrease revenues and decrease assets.|
|increase assets and increase revenues.|
|increase liabilities and increase revenues.|
|decrease liabilities and increase revenues.|
At December 31, 2017, before any year-end adjustments, Macarty Company’s Prepaid Insurance account had a balance of $2,700. It was determined that $1,500 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be
Which is the correct order of steps in the accounting cycle?
|Prepare financial statements, prepare adjusting entries, prepare closing entries, prepare a post-closing trial balance.|
|Journalize and post transactions, journalize and post closing entries, journalize and post adjusting entries.|
|Post transactions, journalize transactions, prepare a trial balance, prepare financial statements.|
|Journalize and post transactions, journalize and post adjusting entries, journalize and post closing entries.|