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ACC290 Phoenix Orion Chapter 4 Accrual Accounting Concepts Questions

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Orion Chapter #4 Accrual Accounting Concepts 1. Which of the following statements about accrual-basis accounting is NOT true? Accrual-basis accounting recognizes expenses when they are paid. 2. If a company spends $12 million dollars for a warehouse, when should the cost be written off? Over the useful life of the warehouse 3. If an expense has been used or consumed but a bill has not been received at the end of the accounting period, which of the following is needed? An adjusting entry should be made recognizing the expense 4. Which of the following is true about unearned revenues? They are received and recorded as liabilities before they are earned. 5. Which of the following exemplify an asset-expense relationship? Prepaid expense adjusting entries 6. If an adjustment is needed for unearned revenues, the liability is ________ and the related revenue is understated before adjustme ...
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20 pages

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