Run the accounting gates

Exercise and reference answers

Questions

1. Correct

   Accrual

   Choices

   1. Accrual
   2. Cash basis
   3. Neither

2. Correct

   Cash basis

   Choices

   1. Accrual
   2. Cash basis
   3. Neither

3. Correct

   Deferral

   Choices

   1. Deferral
   2. Accrual entry
   3. Neither

4. Correct

   Accrual entry

   Choices

   1. Deferral
   2. Accrual entry
   3. Neither

5. Correct

   Asset

   Choices

   1. Asset
   2. Contra asset
   3. Neither

6. Correct

   Contra asset

   Choices

   1. Asset
   2. Contra asset
   3. Neither

Instructions

Pick the basis, then the adjustment, then the account.

Explanation