Chapter 3: Q3-3DQ (page 139)
Question: What type of business is most likely to select a fiscal year that corresponds to its natural business year instead of the calendar year?
By seasonal businesses.
Over 30 million students worldwide already upgrade their learning with Vaia!
All the tools & learning materials you need for study success - in one app.
Get started for free
What is an accrued revenue? Give an example
Question: Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues (UR),
accrued
expenses (AE), or accrued revenues (AR).
a. To record revenue earned that was previously received as cash in advance.
b. To record wages expense incurred but not yet paid (nor recorded).
c. To record revenue earned but not yet billed (nor recorded).
d. To record expiration of prepaid insurance.
e. To record annual depreciation expense.
What contra account is used when recording and reporting the effects of depreciation? Why is it used?
Question: Choose from the following list of terms/phrases to best complete the statements below.
a. Fiscal year d. Accounting period g. Natural business year
b. Timeliness e. Annual financial statements h. Time period assumption
c. Calendar year f. Interim financial statements i. Quarterly statements
1. presumes that an organization’s activities can be divided into specific time periods.
2. Financial reports covering a one-year period are known as .
3. A(n)consists of any 12 consecutive months.
4. A(n)consists of 12 consecutive months ending on December 31.
5. The value of information is often linked to its .
In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.
A. Current assets E. Current liabilities
B. Long-term investments F. Long-term liabilities
C. Plant assets G. Equity
D. Intangible assets
15. Office supplies
What do you think about this solution?
We value your feedback to improve our textbook solutions.
