2024 – 1 Adjustments would not be necessary if financial statements were prepared to reflect net

  1.  Adjustments would not be necessary if financial statements were prepared to reflect net         income
  from
  a. monthly operations.
  b. fiscal year operations.
  c. interim operations.
  d. lifetime operations.
 
 2.  Management usually desires ________ financial statements and the IRS requires all
 businesses to file _________ tax returns.
 a. annual, annual
 b. monthly, annual
 c. quarterly, monthly
 d. monthly, monthly
 
 3.  Which of the following are in accordance with generally accepted accounting principles?
 a. Accrual basis accounting
 b. Cash basis accounting
 c.  Both accrual basis and cash basis accounting
 d.  Neither accrual basis nor cash basis accounting

 4.  Joe’s Tune-up Shop follows the revenue recognition principle. Jim services a car on July 31. The customer picks up the vehicle on August 1 and mails the payment to Jim on August 5. Jim receives the check in the mail on August 6. When should Jim show that the revenue was earned?
 a. July 31
 b. August 1
 c. August 5
 d. August 6