BSA522- Comprehensive Managerial


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BSA522–A.doc Comprehensive Managerial Accounting Name:_______________________ I. Fill in the blanks using the most appropriately describing word. Accounting cycle, Accruals, Accrued assets, Accrued liabilities, Cash, Deferral, Deferred expense, Deferred revenue, Depreciation, Earned, Interest, Internal, Mark-to-Market Accounting, Nominal, Production method, Recognition, Trading securities Fair market, Expense, Realized, 1. The principle of revenue recognition requires that revenues must have been both _____________ and _______________. 2. An account receivable does not carry this, but a note receivable bears ________________. 3. The four types of adjustments are __________________, ___________________, _______________, and ________________. 4. The entire accounting process, from the recording of an economic event to the preparation of financial statements, is called the ___________________. 5. _______________ is the process of recording an item in the financial statements as an asset, liability, equity, revenue, or expense. 6. Adjusting entries are ____________ transactions and therefore never involve _________. 7. ____________ is used to refer to a situation where cash has either been paid or received, but where recognition of the expense or revenue is delayed to a later time. 8. ______________ involves the use of assets or incurring of liabilities in delivering goods and services. 9. _______________ is the name given to allocating the cost of a long-term asset over its life. 10. __________________ is the name given to revenue, expense, and dividends accounts because they are temporary and are closed at the end of the period. 11. ___________________ permits revenue recognition when gold, silver, and similar precious metals have been produced from mine, even though they have not yet been sold. GAAP also permits this method for certain grains and other corps. 12. GAAP set out explicit rules of ___________________ for the balance sheet valuation of marketable securities. So __________________ should be reported at market value, with any unrealized G/L of the period included in the calculation of the period’s income. II. True or False Question: 13. _____: Adjustments are concerned with ensuring that the cash account is up to date at the end of the period. 14. _____: Current value is both more relevant and more reliable than historical cost. 15. _____: Deferred expense is an asset that results from the payment of cash before the expense is incurred. 16. _____: Failing to adjust for depreciation in a period will overstate net income in that period and understate total assets at the end of the period. 17. _____: If a company has positive net income during a period, its retained earnings balance on the balance sheet will always increase from the previous year. 18. _____: Revenues or sales in the financial statements measure the cash received from customers during the accounting period. 19. _____: An asset is always involved when revenue is recognized. 20. _____: An adjusting entry does not include an entry to the cash account. 21. _____: Expenses may come both from using an asset and/or by incurring a liability. Read more

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