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Adjusting Accounts and Preparing Financial Statements: Tutoring Solution Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. The goal of the _____ is to provide financial data that is so accurate and concise that it can paint a vivid picture of how well a company is doing at a specific point in time.

Question 2 2. What is the most common accounting method used by businesses?

Question 3 3. _____ accounts are those accounts that are not always a part of a company's chart of accounts.

Question 4 4. What are expenses incurred in one accounting period but not paid until another?

Question 5 5. When are the balances in temporary accounts zeroed out?

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Question 6 6. Which of the following is an example of a nominal account?

Question 7 7. Which accounts have balances that are zeroed out at the end of each accounting period?

Question 8 8. Why doesn't the Balance Sheet utilize all of a company's accounts that are listed on the Adjusted Trial Balance?

Question 9 9. How do potential investors utilize a company's reported financial information?

Question 10 10. What is the biggest difference between cash basis accounting and accrual basis accounting?

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Question 11 11. Entries made in the general journal at the end of an accounting period to bring account balances up to date are called _____.

Question 12 12. Which principle recognizes revenue when it is earned regardless of how cash flows?

Question 13 13. Which of the following is an example of a temporary account?

Question 14 14. Some company accounts need to be _____ in order to meet the requirements of the accrual basis accounting method.

Question 15 15. What type of accounts will always be a part of the chart of accounts?

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Question 16 16. Which of the following is NOT an example of a real account?

Question 17 17. Accounts whose balances are not carried over from one accounting period to another are called:

Question 18 18. A report that lists all the accounts a company has and their balances after adjustments have been made is called the _____.

Question 19 19. What does REID stand for in closing entries process?

Question 20 20. Which of the following categories of people do NOT rely on a company's timely reporting of financial data?

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Question 21 21. Money earned in one accounting period but not received until another is called _____.

Question 22 22. Which principle states that any costs associated with doing business should be recorded in the same period as the revenue that those costs help generate?

Question 23 23. Which of the following is one of the most common forms of accrued revenues?

Question 24 24. Accounts whose balances are carried over from one accounting period to the next are called:

Question 25 25. The method of accounting that recognizes revenue when it is earned and expenses when they are incurred is called:

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Question 26 26. An account whose balance zeroes out at the end of an accounting period is called a(n) _____ account.

Question 27 27. On which financial statement are expenses reported?

Question 28 28. How is Adjusted Trial Balance used for preparing financial statements?

Question 29 29. What is the goal of the Balance Sheet?

Question 30 30. Which of the following is one of the most common forms of accrued expenses?

Adjusting Accounts and Preparing Financial Statements: Tutoring Solution Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Financial Accounting: Tutoring Solution  /  Business Courses
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