MCQ Questions
Q.1.
Using accrual accounting revenue is recorded and reported only
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    When they are incurred, whether or not cash is paid
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    After the income statement and before the balance sheet
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    Depreciation expense reflects the decrease in market value each year.
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    When the services are rendered without regard to when cash is received
Q.2.
Using accrual accounting, expenses are recorded and reported only
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    When they are incurred, whether or not cash is paid
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    When the services are rendered without regard to when cash is received
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    After the income statement and before the balance sheet
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    All real accounts are closed at the end of the period.
Q.3.
Unearned revenue is what type of an account?
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    Not earned but the cash has been received
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    Liability
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    Liabilities
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    Fees Earned
Q.4.
Accrued revenues would appear on the balance sheet as
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    Liabilities
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    Not earned but the cash has been received
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    Liability
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    Assets
Q.5.
The general term employed to indicate an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is
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    Deferral
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    Accrual
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    Book value
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    Accruals
Q.6.
Depreciation Expense and Accumulated Depreciation are classified, respectively, as
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    contra asset, expense
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    The net income or net loss for the period
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    Unearned Rent
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    Expense and Contra asset