Exam 4: Adjusting the Accounts and Preparing Financial Statements

The portion of a non-current asset,such as plant and equipment,which is transferred to an expense account during an accounting period,is known as:

The publishers of 'Guide to the Stock Market',a magazine published monthly, received $121 in advance,including $11 GST on 1 March,for a 1 year's subscription (11 issues)beginning with the March issue.On receipt of the subscription which entry will the company make?

The office supplies inventory account of Tan Traders shows a balance of $1600 on 31 December 2014.The adjusting entry to record office supplies of $550 issued to staff in the 12 months up to 31 December 2014 is which of the following?

Assets that do not have a physical subsistence but which are expected to provide future benefits are known as:

Harry Company uses cleaning supplies on a daily basis.Under the accrual basis of accounting these supplies would be an expense of the period in which they are:

On a worksheet used in a manual accounting system to prepare the financial statements:

The publishers of 'Guide to the Stock Market',a magazine published monthly, received $121 in advance,including $11 GST on 1 March,for a 1 year's subscription (11 issues)beginning with the March issue.At the end of the financial year on 30 June what entry will the company make?

The two main accounting assumptions that underpin the accrual approach to profit measurement are:

Under the cash approach to profit measurement income is recorded in the accounting period when:

The office supplies inventory account of Tan Traders shows a balance of $1600 on 31 December 2014.Office supplies of $550 were issued to staff in the 12 months up to 31 December 2014.After adjustment on 31 December 2014,the close of the annual accounting period:

Which statement relating to the accumulated depreciation account is correct?

Profit is measured as:

Newark Company purchased a machine for $35 000 on 1 January 2012 with an estimated life of 5 years and a residual value of $5000.The straight-line method of depreciation is used.What is the carrying value of the machine on the 31 December 2014 in the balance sheet of Newark Company?

The wages expense account for Gerry Mander,political consultants,showed the following entries for 2014.What was the portion of wages that was treated as an expense in 2013 but was not paid until 2014? Wages expense Date Particulars Debit Credit Balance 2014 \ \ \ Jarn.1 Accred expenses 1200 1200 Year Various cash payments 51000 49800 Dec. 31 Accrued expenses 2200 52000

Michael Myers & Co paid salaries of $150 000 during the year and owes $2200 for three days work carried out before the 31 December 2014 which will not be paid until January 3 2015.After the adjusting entry for the year ended 31 December 2014:

Which of the following is not an advantage of preparing an adjusted trial balance?

To facilitate the evaluation of an entity's liquidity assets and liabilities are classified as:

The office supplies inventory account is a/an:

Which of these is not a name for the original cost of an asset less its accumulated depreciation (if any)?

During 2014 The Style Hairdressing Salon paid out $41 000 in wages from its bank account.At year-end 2014 wages owing but unpaid were $1600.The salon uses accrual accounting.How much would be reported as wages expense for 2014?