1. Accounting time period which is one year in length, but doesn't begin on January 1, is referred to as:
a. a fiscal year.
b. an interim period.
c. the time period assumption.
d. a reporting period.
2. Revenue recognition principle dictates that revenue must be recognized in accounting records:
a. when cash is received.
b. when it is earned.
c. at the end of the month.
d. in the period that income taxes are paid.
3. Matching principle matches:
a. customers with businesses.
b. expenses with revenues.
c. assets with liabilities.
d. creditors with businesses.
4. Suppose that there is a net loss for period, debits equal credits in all but which section of worksheet?
a. Income statement columns
b. Adjustments columns
c. Trial balance columns
d. Adjusted trial balance columns
5. The income statement and balance sheet columns of Pine Company's worksheet reflects following totals:
| |
Income Statement |
Balance Sheet |
| |
Dr. |
Cr. |
Dr. |
Cr. |
| Totals |
$58,000 |
$48,000 |
$34,000 |
$44,000 |
Net income (or loss) for period is
a. $48,000 income.
b. $10,000 income.
c. $10,000 loss.
d. not determinable.