Anexpenseincurredin2014isnotpaiduntil2015.Usingtheaccrualbasisofaccounting,theexpenseshouldappearon:
A. the2014incomestatement.
B. the2015incomestatement.
C. neitherthe2014northe2015incomestatement.
D. boththe2014and2015incomestatements.
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Ifacompanyforgottorecordasaleonaccount:
A. accountsreceivableonthebalancesheetwillbeoverstated.
B. assetsonthebalancesheetwillbeunderstated.
C. netincomeontheincomestatementwillstillbecorrect.
D. revenueontheincomestatementwillbeoverstated.
TheaccountingperiodthatendsonadateotherthanDecember31iscalleda:
A. calendaryear.
B. yearend.
C. fiscalyear.
D. revolvingyear.
Expensescan:
A. bepaidincash.
B. arisefromusingupanasset.
C. occurwhenacompanycreatesaliability.
D. bealloftheabove.
Thefollowingaccountsareup-to-dateandneednoadjustmentattheendoftheperiod:
A. cash,commonstockandprepaidrent.
B. prepaidrent,suppliesandunearnedrent.
C. cash,dividendsandunearnedrent.
D. cash,dividendsandcommonstock.
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