Revenue/Gains = ____________ in cash.
increases
decreases
no changes/effect
Which system of accounting is used in GAAP?
Cash Method
Accrual Method
Neither Method
In the Cash method system of accounting, decreases/losses = _____________ in cash
no changes
In the Accrual Method system of accounting, revenues/gains are recognized when _____________________________
earned and measurable
incurred
not recognized
Using the Accrual method, expenses/losses are recognized when _______________.
Expenditure is _________________________
funds saved
funds spent
no effect on funds
Expense is a _______________ of earnings on the Income Statement
increase
reduction
no effect
Expenditure ________________ equal(s) expense
always
doesn't always
We record a journal entry because there has been either:
An accounting event
A required adjustment
Closing of temporary accounts at the end of the accounting period
All of the above
None of the above
