A. Dividends Payable B. Rental Expense C. Retained Earnings D. Accounts Receivable 25. Which of the following statements best describes the revenue principle? A. Expenses must be matched to the revenues that they helped generate B. Revenues must be recorded only when cash is received C. Revenue must be recorded only when earned, regardless of the timing of cash receipts D. Revenue results from any receipt of cash from any source 26. Our building depreciates at a rate of $10,000 per year. The entry to record depreciation at year end would result in: A. A credit to depreciation expense B. A credit to the Building account C. No effect on total assets D. A credit to accumulated depreciation 27. Which of the following is not considered a current asset? A. Cash B. Inventory C. Equipment D. Accounts Receivable 28. If a company forgot to record an adjusting entry for depreciation, which of the following would be true? A. Assets would be understated B. Liabilities would be overstated C. Net Income would be understated D. Expenses would be understated 29. If a company began operations in 2012, assets increased by $35,000, liabilities increased by $17,000, and the owners of the company invested $5,000 in the company during the year. Revenues were $50,000 and expenses were $30,000. How much were dividends during the year? A. $7,000 B. $5,000 C. $13,000 D. $20,000 30. Which of the following is not included as a rule or principle under GAAP? A. Accrual-basis accounting B. Cash-basis accounting C. Matching principle D. Revenue principle
A. Dividends Payable B. Rental Expense C. Retained Earnings D. Accounts Receivable 25. Which of the following statements best describes the revenue principle? A. Expenses must be matched to the revenues that they helped generate B. Revenues must be recorded only when cash is received C. Revenue must be recorded only when earned, regardless of the timing of cash receipts D. Revenue results from any receipt of cash from any source 26. Our building depreciates at a rate of $10,000 per year. The entry to record depreciation at year end would result in: A. A credit to depreciation expense B. A credit to the Building account C. No effect on total assets D. A credit to accumulated depreciation 27. Which of the following is not considered a current asset? A. Cash B. Inventory C. Equipment D. Accounts Receivable 28. If a company forgot to record an adjusting entry for depreciation, which of the following would be true? A. Assets would be understated B. Liabilities would be overstated C. Net Income would be understated D. Expenses would be understated 29. If a company began operations in 2012, assets increased by $35,000, liabilities increased by $17,000, and the owners of the company invested $5,000 in the company during the year. Revenues were $50,000 and expenses were $30,000. How much were dividends during the year? A. $7,000 B. $5,000 C. $13,000 D. $20,000 30. Which of the following is not included as a rule or principle under GAAP? A. Accrual-basis accounting B. Cash-basis accounting C. Matching principle D. Revenue principle
acct_201_unit_1_review_with_answer_key.docx