4.10: Review Questions
- Page ID
- 94590
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1.
Joe runs a small barbershop. Most of his customers pay with cash. He has only a few monthly expenses including wages for one employee and utilities. Which method of accounting should Joe use?
2.
Which method of accounting generally provides the most accurate information on organizational performance (income or loss)?
3.
Under the accrual basis of accounting, when is an expense recorded?
4.
Describe the basic elements of a T-account.
5.
What is double-entry accounting?
6.
What is the expense recognition principle?
7.
Why is ethics an important concept pertaining to revenue and expense recognition principles?
8.
What is the revenue recognition principle?
9.
What is the difference between a tangible and an intangible fixed asset? List common examples of each.
10.
How is the cost of a fixed asset recorded and recognized over time?