Posted: May 17th, 2016

The matching principle states that

1.
The matching principle states that
A)
expenses become costs when they expire.
B)
liabilities should be matched against assets on the balance sheet.
C)
expenses should be matched against the revenues they help generate.
D)
costs should be expensed when paid.

2.
Cerner Company showed the following balances at the end of its first year:
What did Cerner Company show as total credits on its trial balance?
A)
$21,500
B)
$21,000
C)
$20,500
D)
$22,000

3.
Hardy Company purchased office equipment for $4,800 on December 1. It is estimated that annual depreciation on the office equipment will be $960. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
A)
Debit Depreciation Expense, $960; Credit Accumulated Depreciation, $960.
B)
Debit Depreciation Expense, $80; Credit Accumulated Depreciation, $80.
C)
Debit Depreciation Expense, $3,840; Credit Accumulated Depreciation, $3,840.
D)
Debit Office Equipment, $4,800; Credit Accumulated Depreciation, $4,800.

4.
Each of the following accounts is closed to Income Summary except
A)
Expenses.
B)
Dividends.
C)
Revenues.
D)
All of these are closed to Income Summary.

5.
The usual sequence of steps in the transaction recording process is:
A)
journal

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