Chapter 03 Accounting 26e Carl Warren James M Reeve Jonathan Duchac

Chapter 03 Accounting 26e Carl Warren James M Reeve Jonathan Duchac

 

Complete Chapter Questions With Answers

 

Sample Questions Are Posted Below

 

1. The system of accounting where revenues are recorded when they are earned and expenses are recorded when they are incurred is called the cash basis of accounting.
   1. True
   2. False

 

ANSWER:                                  False

DIFFICULTY:                           Moderate

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.03-01 – 03-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.04 – Cash vs. Accrual

ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

2. Generally accepted accounting principles require accrual-basis accounting.
   1. True
   2. False

 

ANSWER:                                  True

DIFFICULTY:                           Moderate

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.03-01 – 03-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.02 – GAAP

ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

3. The revenue recognition concept states that revenue should be recorded in the same period as the cash is received.
   1. True
   2. False

 

ANSWER:                                  False

DIFFICULTY:                           Moderate

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.03-01 – 03-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.02 – GAAP

ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

 

 

 

4. The matching concept requires expenses be recorded in the same period that the related revenue is recorded.
   1. True
   2. False

 

ANSWER:                                  True

DIFFICULTY:                           Moderate

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.03-01 – 03-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.02 – GAAP

ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

5. For most large businesses, the cash basis of accounting will provide accurate financial statements for user needs.
   1. True
   2. False

 

ANSWER:                                  False

DIFFICULTY:                           Moderate

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.03-01 – 03-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.09 – Financial Statements

ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic