Financial Accounting
Which statement best describes the difference between cash basis and accrual basis accounting?
Which of the following is a type of adjusting entry?
A company purchases a machine for \$50,000 with a useful life of 10 years. Using straight-line depreciation, what is the annual depreciation expense?
A company pays \$18,000 for a 12-month insurance policy on July 1st. What adjusting entry should be made on December 31st?
Which of the following is an example of an accrual?
A company pays \$3,600 for a 6-month advertising contract on February 1st. What is the monthly advertising expense, and what adjusting entry should be made on April 30th?
A company pays \$15,000 for a 10-month lease on May 1st. What adjusting entry should be made on October 31st?
Adjusting journal entries are necessary to ensure that:
Which statement best describes the advantage of accrual basis accounting over cash basis accounting?
Which of the following statements is true about adjusting journal entries?
