Quiz Ch 02 – T/F Revenue Recognition for Services Performed on Account
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
Revenue from services performed on the account is recognized only when the cash is received.
Revenue from services performed on the account is recognized only when the cash is received.
The process of recording a transaction in the journal is commonly referred to as booking or journalizing the entry.
In T-Accounts, the left-hand side represents the debit side, while the right-hand side represents the credit side.
In T-Accounts, the balance of an account is determined by subtracting the total credits from the total debits.
The process of posting accounting transactions negates the requirement of journalizing them.
Accounting transactions have an equal effect on both sides of the equation or an offsetting effect on the same side.
The journal is where original entries are recorded.
Transactions offer unbiased financial information regarding an entity’s exchange impact.
The account serves as the fundamental summarizing tool in accounting.
Prepaid rent is considered an expense since the payment confers a future benefit to the company.