FAR — Financial Accounting & Reporting — Quiz 55

Questions in this quiz (10)

1. Which of the following best describes accrued expenses?

   • Expenses paid in advance
   • Expenses incurred but not yet paid
   • Long-term liabilities
   • Expenses recorded only after payment

2. Which account records salaries earned but not yet paid to employees?

   • Salaries expense
   • Salaries payable
   • Accounts receivable
   • Revenue

3. Which best describes deferred revenue?

   • Revenue earned but not collected
   • Cash received before services are performed
   • Revenue recognized at year-end only
   • Revenue earned and collected

4. Which account is credited when a company receives advance payment from customers?

   • Revenue
   • Unearned revenue
   • Accounts receivable
   • Expense

5. Which journal entry recognizes revenue previously recorded as unearned?

   • Debit Revenue; Credit Cash
   • Debit Unearned Revenue; Credit Revenue
   • Debit Cash; Credit Revenue
   • Debit Revenue; Credit Unearned Revenue

6. Which best describes notes payable?

   • Written promise to pay a specified amount
   • Amounts owed by customers
   • Cash received in advance
   • Long-term investments

7. Which formula calculates interest on a note?

   • Principal × Rate × Time
   • Revenue × Rate × Time
   • Assets × Rate × Time
   • Sales × Rate × Time

8. Which account is debited when interest expense is recorded?

   • Interest expense
   • Interest payable
   • Cash
   • Accounts payable

9. Which account is credited when interest expense is recorded but unpaid?

   • Cash
   • Interest payable
   • Accounts receivable
   • Revenue

10. Which financial statement lists liabilities?

    • Income statement
    • Balance sheet
    • Statement of cash flows
    • Statement of retained earnings