When We Come to a Conclusion About What We Don't

question 14

Multiple Choice

When we come to a conclusion about what we don't know by reasoning from what we do know, we make

• A) an inference.
• B) a claim.
• C) an analysis.
• D) an average.
• E) a fallacy.

Recognize and record adjusting entries for accrued expenses and revenues, including the impact on financial statements.

Understand the alternative methods for accounting for prepaid expenses and unearned revenue.

Describe the characteristics and purposes of adjusted and unadjusted trial balances and their role in the preparation of financial statements.

Explain the principles of revenue recognition and expense recognition (matching) in accrual basis accounting.