Acctg 230 Exam 1

Revenues, expenses, and dividends are referred to as _____ accounts.

temporary

Which of the following is permitted under current U.S. GAAP?

Accrual-basis accounting

_____ occur when the cash flow occurs after either the expense is incurred or the revenue is earned.

Accruals

Which of the following are reported as stockholders' equity on a classified balance sheet?

Retained earnings, common stock.

Which of the following financial statements typically is prepared last?

Statement of cash flows

Reporting revenues when goods or services are provided and expenses in the period they are incurred to generate these revenues is referred to as ____-basis accounting.

accrual

The income statement, statement of stockholders' equity, and balance sheet typically are prepared utilizing information shown in the:

adjusted trial balance.

A prepayment that is originally recorded as an asset will be_______.

allocated to future accounting periods based on the value of the benefit used during the period

Accounts receivable are:

assets in the balance sheet.

Reporting revenues only when cash is received and expenses only when cash is paid is called the ____-basis accounting.

cash

A list of all the account names used to record transactions of a company is referred to as:

chart of accounts.

The entries that transfer the balances of all temporary accounts to retained earnings are referred to as:

closing entries.

Depreciation is an allocation of the ____ of buildings, vehicles, and equipment to expense over time as they are used.

cost

Accumulated Depreciation has a normal _______ balance which indicates that it ______ decreases total assets.

credit; decreases

A(n) ________ represents a payment of cash to the stockholders of a company.

dividend

A(n) _________ transaction involves an exchange between the company and a separate economic entity.

external

A classified balance sheet:

groups assets and liabilities into current and long-term categories.

An adjustment is necessary to record interest expenses at year-end because the interest:

has already been incurred.

The Accounts Receivable account should be ______ when adjusting at the end of the period for any revenues that have been earned but not yet collected or recorded.

increased

The process of transferring information from a journal entry to the specific accounts affected in the general ledger is referred to as:

posting.

The purpose of a journal is to:

record a chronological listing of every transaction for a company.

Closing entries move the balances from the _______ accounts into the Retained Earnings account.

temporary