The Accounting Process, Part One - Module 2 of 6

Question 1

In order for a business to properly record income, there must be a

Question 2

An approach to recording income based on the final critical event is called the

Question 3

Using the cost of goods sold account to allocate costs to revenue is an example of

Question 4

Depreciation expense is an example of

Question 5

The next 3 questions pertain to the operations of Sonia’s Real Estate Brokerage firm. Sonia normally collects her sales fee after selling a property. This fee would be an example of

Question 6

Sonia often collects a fee up front as a retainer for certain wealthy clients. This fee would be an example of

Question 7

Sonia uses an independent appraisal service called Larry’s Real Estate Appraisers to compare different properties to gauge the market value of the properties’ she intends to sell. She pays the fee when she is billed, which is typically within 30 days after an appraisal. This fee is an example of

Question 8

Sonia’s prepays her liability insurance premiums, which is an example of a(n)

Question 9

The percentage of sales method gives the

Question 10

Acme Corporation borrows $100,000 on a short-term discounted note for First Bank but only receives $95,000. The other $5,000 is