Question 1

Reynolds Company experienced an accounting event that affected its financial statements as indicated below:

Which of the following accounting events could have caused these effects on the elements of Reynolds' statements?

Accepted Answer

A)   Paid a cash dividend.
B)   Earned cash revenue.
C)   Borrowed money from a bank.
D)   The information provided does not represent a completed event.

Question 2

Tandem Company borrowed $32,000 of cash from a local bank.Which of the following accurately reflects how this event affects the company's horizontal financial statements model?

Accepted Answer

A)   Option A
B)   Option B
C)   Option C
D)   Option D

Question 3

Which of the following statements is true regarding accrual accounting?

Accepted Answer

A)   Revenue is recorded only when cash is collected.
B)   Expenses are recorded when they are incurred.
C)   Revenue is recorded in the period when it is earned.
D)   Revenue is recorded in the period when it is earned and expenses are recorded when they are incurred.

Question 4

Which of the following is frequently used to describe the expenses that are matched in the same accounting period in which they are incurred?

Accepted Answer

A)   Market expenses
B)   Matching expenses
C)   Period costs
D)   Working costs

Exam 2: Accounting for Accruals

Tandem Company borrowed $32,000 of cash from a local bank.Which of the following accurately reflects how this event affects the company's horizontal financial statements model?

Correct Answer
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Reynolds Company experienced an accounting event that affected its financial statements as indicated below: Which of the following accounting events could have caused these effects on the elements of Reynolds' statements?

Correct Answer
verified

Which of the following is frequently used to describe the expenses that are matched in the same accounting period in which they are incurred?

Correct Answer
verified

Which of the following statements is true regarding accrual accounting?

Correct Answer
verified

Exam 2: Accounting for Accruals

Tandem Company borrowed $32,000 of cash from a local bank.Which of the following accurately reflects how this event affects the company's horizontal financial statements model?

Correct AnswerverifiedShow Answer

Reynolds Company experienced an accounting event that affected its financial statements as indicated below: Which of the following accounting events could have caused these effects on the elements of Reynolds' statements?

Correct AnswerverifiedShow Answer

Which of the following is frequently used to describe the expenses that are matched in the same accounting period in which they are incurred?

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding accrual accounting?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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