Reference no: EM132782478

Problem 1: The accrual basis of accounting recognizes

Option 1: revenues when cash is received.
Option 2: expenses when cash is paid.
Option 3: revenues when products are produced as part of operating activities.
Option 4: expenses when resources are consumed as part of operating activities.

Problem 2: An error of original entry occurs when

Option 1: either the debit entry or the credit entry for a particular transaction is recorded in the wrong class of account.
Option 2: a correct figure is entered in the double entry accounting records, once in the correct ledger account and once in the wrong person's account
Option 3: an incorrect figure is entered on the correct sides of the correct ledger accounts
Option 4: None of the above

Problem 3: Which of the following statements is true about a proper journal entry?

Option 1: An explaination must follow each debit and each credit.
Option 2: The name of the month should be reapeted for each entry.
Option 3: The Posting Reference column is filled in prior to posting
Option 4: All debits are listed before any credits.