Accounting March

Prepaid Expenses are costs paid for in advance of receiving their benefit

• True

• False

Depreciation is calculated for land only

• True

• False

Straight Line Depreciation is the cost of an asset minus the estimated value or salvage value of the asset at the end of its useful life

• True

• False

What account(s) require adjustments at the end of the accounting period

• Depreciation

• Prepaid Rent

• Supplies

• All of the answers are correct

Accrual basis accounting recognizes revenues and expenses only when the cash is received or paid

• True

• False

The matching principle matches expenses in the same accounting period as the revenues they helped to earn

• True

• False

Financial records “MUST” reflect the “TRUE” financial position of a hospitality operation at a specific date.

• True

• False

An accelerated method to depreciate an expense

• Straight Line Depreciation

• Residual Value Depreciation

• Double Declining Depreciation

• Asset Depreciation

Cash based accounting records revenues regardless of when they are earned

• True

• False

A business does not plan on liquidating their assets

• Objectivity Principle

• Distinct Entity Principle

• Going Concern Principle

• Monetary Unit Principle