Question 1

Adjusting entries impact at least one income statement and at least one statement of financial position account.

Accepted Answer

A) True 
 B)False

Question 2

An accumulated depreciation account

Accepted Answer

A)  is a contra-liability account. 
B)  increases on the debit side. 
C)  is offset against total assets on the statement of financial position. 
D)  has a normal credit balance. 
A)  is a contra-liability account. 
B)  increases on the debit side. 
C)  is offset against total assets on the statement of financial position. 
D)  has a normal credit balance.

Question 3

Which of the following time periods would not be referred to as an interim period?

Accepted Answer

A)  Monthly 
B)  Quarterly 
C)  Semi-annually 
D)  Annually 
A)  Monthly 
B)  Quarterly 
C)  Semi-annually 
D)  Annually

Question 4

Jenni's Music Store borrowed $12,000 from the bank signing a 7%, 3-month note on September 1. Principal and interest are payable to the bank on December 1. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on September 30, would be

Accepted Answer

A)  Debit Interest Expense, $840; Credit Interest Payable, $840. 
B)  Debit Interest Expense, $70; Credit Interest Payable, $70. 
C)  Debit Note Payable, $840; Credit Cash, $840 
D)  Debit Cash, $210; Credit Interest Payable, $210. 
A)  Debit Interest Expense, $840; Credit Interest Payable, $840. 
B)  Debit Interest Expense, $70; Credit Interest Payable, $70. 
C)  Debit Note Payable, $840; Credit Cash, $840 
D)  Debit Cash, $210; Credit Interest Payable, $210.

Question 5

On January 1, 2014, Dimes and Quarters Corp. purchased a general liability insurance policy for $9,000 to provide coverage for the calendar year.
1. If the company recorded the policy as an asset when purchased, what is the adjusting journal entry that should be recorded at January 31, 2014?
*2. If the company expensed the cost of the policy on January 1, 2014, what is the adjusting entry that should be recorded at January 31, 2014?

Accepted Answer

The answer of On January 1, 2014, Dimes and Quarters...

Question 6

Jeff Anderer Enterprises purchased computer equipment on May 1, 2014 for $5,400. The company expects to use the equipment for 3 years. It has no residual value.
1. What adjusting journal entry should the company make at the end of each month if monthly financials are prepared (annual depreciation is $1,800)?
2. What is the book value of the equipment at May 31, 2014?

Accepted Answer

The answer of Jeff Anderer Enterprises purchased computer equipment on...

Question 7

In a service company, revenue is recognized when the service is ______________.

Accepted Answer

The answer of In a service company, revenue is recognized...

Question 8

An adjusted trial balance proves the ______________ of the total debit and credit balances after all ______________ entries have been made.

Accepted Answer

The answer of An adjusted trial balance proves the ______________...

Question 9

In accounting, _________________ results when different companies use the same accounting principles.

Accepted Answer

The answer of In accounting, _________________ results when different companies...

Question 10

All of the following are characteristics of accounting information except

Accepted Answer

A)  faithful representation. 
B)  comparability. 
C)  relevance. 
D)  flexibility. 
A)  faithful representation. 
B)  comparability. 
C)  relevance. 
D)  flexibility.

Question 11

Wave Inn is a resort located in Canada. During December 2014 Spin Jammers held its annual conference at the resort. The charges related to the conference total $360,000, of which 25% has been paid by Spin Jammers. When Wave Inn makes the appropriate adjusting entry, which of the following is a part of the adjustment made to its December 31, 2014 statement of financial position?

Accepted Answer

A)  Debit Cash $270,000. 
B)  Credit revenues $270,000. 
C)  Credit Cash $270,000. 
D)  Debit Cash and credit revenue $270,000. 
A)  Debit Cash $270,000. 
B)  Credit revenues $270,000. 
C)  Credit Cash $270,000. 
D)  Debit Cash and credit revenue $270,000.

Question 12

Expenses incurred but not yet paid or recorded are called

Accepted Answer

A)  prepaid expenses. 
B)  accrued expenses. 
C)  interim expenses. 
D)  unearned expenses. 
A)  prepaid expenses. 
B)  accrued expenses. 
C)  interim expenses. 
D)  unearned expenses.

Question 13

Adjusting entries

Accepted Answer

A)  ensure that the revenue recognition and expense recognition principles are followed. 
B)  are necessary to enable the financial statements to conform to International Financial Reporting Standards (IFRS). 
C)  include both accruals and deferrals 
D)  all of these answer choices are correct. 
A)  ensure that the revenue recognition and expense recognition principles are followed. 
B)  are necessary to enable the financial statements to conform to International Financial Reporting Standards (IFRS). 
C)  include both accruals and deferrals 
D)  all of these answer choices are correct.

Question 14

The accounts in the adjusted trial balance contain all the data the company needs to prepare its statement of financial position.

Accepted Answer

A) True 
 B)False

Question 15

Gwynn Company has an accounting fiscal year which ends on June 30. The company also has a policy of paying the weekly payroll on Friday. Payroll records indicate the following salary costs were incurred.   Instructions
(a) Prepare any necessary adjusting journal entries that should be made at year end on June 30.
(b) Prepare the journal entry to record the payment of the weekly payroll on July 2.

Accepted Answer

@#IMG-DLM& (To recor

Question 16

Failure to prepare an adjusting entry at the end of a period to record an accrued revenue would cause

Accepted Answer

A)  net income to be overstated. 
B)  an understatement of assets and an understatement of revenues. 
C)  an understatement of revenues and an understatement of liabilities. 
D)  an understatement of revenues and an overstatement of liabilities. 
A)  net income to be overstated. 
B)  an understatement of assets and an understatement of revenues. 
C)  an understatement of revenues and an understatement of liabilities. 
D)  an understatement of revenues and an overstatement of liabilities.

Question 17

Accrued expenses are

Accepted Answer

A)  paid and recorded in an asset account before they are used or consumed. 
B)  paid and recorded in an asset account after they are used or consumed. 
C)  incurred but not yet paid or recorded. 
D)  incurred and already paid or recorded. 
A)  paid and recorded in an asset account before they are used or consumed. 
B)  paid and recorded in an asset account after they are used or consumed. 
C)  incurred but not yet paid or recorded. 
D)  incurred and already paid or recorded.

Question 18

RAS Corporation issued a one-year, 6%, €200,000 note on August 31, 2014. Interest expense for the year ended December 31, 2014 was

Accepted Answer

A)  € 12,000. 
B)  € 5,000. 
C)  € 4,000. 
D)  € 3,000. 
A)  € 12,000. 
B)  € 5,000. 
C)  € 4,000. 
D)  € 3,000.

Question 19

An adjusting entry requiring a credit to Insurance Expense indicates that the initial transaction was charged to an asset account.

Accepted Answer

A) True 
 B)False

Question 20

If an adjusting entry is not made for an accrued revenue,

Accepted Answer

A)  assets will be overstated. 
B)  expenses will be understated. 
C)  equity will be understated. 
D)  revenues will be overstated. 
A)  assets will be overstated. 
B)  expenses will be understated. 
C)  equity will be understated. 
D)  revenues will be overstated.

Adjusting entries impact at least one income statement and at least one statement of financial position account.

An accumulated depreciation account

Which of the following time periods would not be referred to as an interim period?

Jenni's Music Store borrowed $12,000 from the bank signing a 7%, 3-month note on September 1. Principal and interest are payable to the bank on December 1. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on September 30, would be

In a service company, revenue is recognized when the service is ______________.

An adjusted trial balance proves the of the total debit and credit balances after all entries have been made.

In accounting, _________________ results when different companies use the same accounting principles.

All of the following are characteristics of accounting information except

Expenses incurred but not yet paid or recorded are called

Adjusting entries

The accounts in the adjusted trial balance contain all the data the company needs to prepare its statement of financial position.

Failure to prepare an adjusting entry at the end of a period to record an accrued revenue would cause

Accrued expenses are

RAS Corporation issued a one-year, 6%, €200,000 note on August 31, 2014. Interest expense for the year ended December 31, 2014 was

An adjusting entry requiring a credit to Insurance Expense indicates that the initial transaction was charged to an asset account.

If an adjusting entry is not made for an accrued revenue,

Accounting in Action

The Recording Process

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Accounting and Financial Reporting for Contingent Liabilities and Leases

Filters

Exam 3: Adjusting the Accounts

Adjusting entries impact at least one income statement and at least one statement of financial position account.

An accumulated depreciation account

Which of the following time periods would not be referred to as an interim period?

Jenni's Music Store borrowed $12,000 from the bank signing a 7%, 3-month note on September 1. Principal and interest are payable to the bank on December 1. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on September 30, would be

In a service company, revenue is recognized when the service is ______________.

An adjusted trial balance proves the ______________ of the total debit and credit balances after all ______________ entries have been made.

In accounting, _________________ results when different companies use the same accounting principles.

All of the following are characteristics of accounting information except

Expenses incurred but not yet paid or recorded are called

Adjusting entries

The accounts in the adjusted trial balance contain all the data the company needs to prepare its statement of financial position.

Failure to prepare an adjusting entry at the end of a period to record an accrued revenue would cause

Accrued expenses are

RAS Corporation issued a one-year, 6%, €200,000 note on August 31, 2014. Interest expense for the year ended December 31, 2014 was

An adjusting entry requiring a credit to Insurance Expense indicates that the initial transaction was charged to an asset account.

If an adjusting entry is not made for an accrued revenue,

Accounting in Action

The Recording Process

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Accounting and Financial Reporting for Contingent Liabilities and Leases

Filters

An adjusted trial balance proves the of the total debit and credit balances after all entries have been made.