Answer Happy

Questions 1-4. Choose between A through C
Questions 5-8. Choose between A through D
1) Companies tie expense recognition to revenue recognition. This Principle is known as: (a) Matching, (b) Deferral (C) Cash 2) Paying cash in advance for services, ie. Prepaid rent is an (a) Asset, (b) Income, (c) Expense 3) At the end of the accounting period, we close revenue and expenses into (a) Notes Payable, (b) Retained Earnings, (c) Accounts Payable 4) What cost must be shown on the Balance Sheet when purchasing a capital asset, ie. Equipment (a) Current Value, (b) Revenues, (c) Historical Cost 5) What is the normal balance for Revenues (a) debit, (b) credit 6) What is the normal balance for Accumulated Depreciation (a) debit, (b) credit 7) On what statement will dividends appear (a) Income Statement, (b) Statement of Retained Earnings 8) Unearned Revenue is (a) asset, (b) liability, (c) revenue, (d) expense