Question

Force Completion This test can be saved and resumed later. Question Completion Status QUESTION 1 A fiscal year is any consecutive 12-months in accounting. O True False QUESTION 2 One of the five types of account is the Liabilities account. O True O False QUESTION 3 Acerual basis accounting doey notapply adjustments (one example: unearned revenues) O True False QUESTION 4 Four types of accounting adjustments are: Deferred expense, Deferred revenue. Accrued expense, and Accrued revenue. O True O False

Answer 1

Question 1

Answer----------True

Its true that we call 12 months as fiscal year. It is not mandatory that fiscal year is always the calender year that is January to December.

Question 2

Answer----------True.

The five type of accounts are Asset, liability, equity, expense and revenue.

Question 3

Answer----------False.

Accrual accounting does apply adjustments. Cash accounting is the one that does not apply adjustments.

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Question 4

Answer----------True.

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Accrual expense are expenses that are incurred but not paid. Accrual revenue are revenue that are earned but not received in cash or not due to be received such as interest on loan.

Deferred revenue are revenue that are not yet earned but received in advance.Deferred expense are expenses that are paid in cash but not yet incurred.