Answer to Question #215809 in Accounting for zuby

Question

1.

____ Determining when to recognize revenue can be difficult for accountants.

2.

____ Only permanent accounts are closed at the end of the financial statement cycle.

3.

____ Revenue may not be recorded until cash is collected.

4.

____ Some changes to accounts occur because of the passage of time.

5.

____ Accountants do not have to exercise much judgment because there are so many rules to follow.

6.

____ Assets, liabilities and owners’ equity accounts will start each financial statement cycle with the same balance they had at the end of the previous cycle.

7.

____ The word “accrue” means “to grow.”

8.

____ Companies have some discretion in how and when they record accruals.

9.

____ The purpose of adjusting entries is to bring the balance in temporary accounts to zero at the end of the reporting cycle.

10.

____ Only one trial balance is prepared during a financial statement cycle

true and false

Answer 1

Answer 1 - True

Answer 2 - False

Answer 3 - False

Answer 4 - True

Answer 5 - False

Answer 6 - True

Answer 7 - True

Answer 8 - True

Answer 9 - False

Answer 10 - False