Which of the following procedures involves transferring amounts recorded in the general journal to ledger accounts?
Answer
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a.
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preparing a trial balance
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b.
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journalizing
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c.
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posting
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d.
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cross-indexing
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Question
Which of the following statements about accrual basis accounting is true?
Answer
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a.
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Accrual basis accounting is used only by small hospitality businesses.
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b.
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Accrual basis accounting is reflected on the statement of cash flows.
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c.
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Accrual basis accounting generally requires that several adjusting entries be recorded at the end of the accounting period.
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d.
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Accrual basis accounting allows a business to show greater profits than cash basis accounting.
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Question
A meeting planner made a deposit with a hotel to reserve exhibit space and the hotel has hosted the meeting. Now that the meeting has taken place, accountants should make an adjustment:
Answer
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a.
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to record liabilities and expenses not previously recorded.
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b.
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to record assets and revenues not previously provided.
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c.
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in which previously recorded liabilities become revenue.
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