clicker Question Preparation Guide: Ch. 4 Clicker questions will be asked in class of this preparation guide. You wia not have time to complete this based on your oompletion guide in class! 1) Blue Airlines Company sells airline tickets online in July, collects the cash from customers in August, and provides the flight service in September Following the revenue recognition principle, in which month should Blue Airlines Company recognize the revenue? a, June b. July c. August d. September 2) Accrual-basis accounting means that transactions that change a company's financial statements are recorded in the periods in which the events occur: a. only if cash is exchanged b. only if cash is not exchanged c. even if cash was not exchanged 3) ABC Co. previously received & recorded $900 cash from a client for future consulting services. Now ABC Co. has provided the services and earned the revenue. What is the necessary adjusting entry? Debit Credit If this adjustment is not made, tive following are overstated, understated, or not impacted: (completed for you on this question) Revenue: understated Assets: not impacted Expense: not impacted Liabilities overstated Stockholders' Equity understated 4) The depreciation on ABC Co.'s office equipment is $650 per month. What is ation? the necessary adjusting entry to record monthly de Debit credit If this adjustment is not made, the following are overstated, understated, or not impacted: Revenue Assets: Expense Liabilities: Stockholders' Equity