Question 1

If an adjustment is needed for unearned revenues, the

Accepted Answer

A)  liability and related revenue are overstated before adjustment. 
B)  liability and related revenue are understated before adjustment. 
C)  liability is overstated and the related revenue is understated before adjustment. 
D)  liability is understated and the related revenue is overstated before adjustment. 
A)  liability and related revenue are overstated before adjustment. 
B)  liability and related revenue are understated before adjustment. 
C)  liability is overstated and the related revenue is understated before adjustment. 
D)  liability is understated and the related revenue is overstated before adjustment.

Question 2

BJ, an employee of Walker Corp., will not receive her paycheck until April 2. Based on services performed from March 16 to March 31, her salary was $800. The adjusting entry for Walker Corp. on March 31 is

Accepted Answer

The answer of BJ, an employee of Walker Corp., will...

Question 3

In general, the shorter the time period, the difficulty of making the proper adjustments to accounts

Accepted Answer

A)  is increased. 
B)  is decreased. 
C)  is unaffected. 
D)  depends on if there is a profit or loss. 
A)  is increased. 
B)  is decreased. 
C)  is unaffected. 
D)  depends on if there is a profit or loss.

Question 4

What is Ling's 2013 net income using cash basis accounting?

Accepted Answer

A)  ¥23,500. 
B)  ¥5,500. 
C)  ¥22,500. 
D)  ¥4,500. 
A)  ¥23,500. 
B)  ¥5,500. 
C)  ¥22,500. 
D)  ¥4,500.

Question 5

Many business transactions affect more than one time period.

Accepted Answer

A) True 
 B)False

Question 6

The economic entity assumption states that economic events

Accepted Answer

A)  of different entities can be combined if all the entities are corporations. 
B)  must be reported to the IASB. 
C)  of a sole proprietorship cannot be distinguished from the personal economic events of its owners. 
D)  of every entity can be separately identified and accounted for. 
A)  of different entities can be combined if all the entities are corporations. 
B)  must be reported to the IASB. 
C)  of a sole proprietorship cannot be distinguished from the personal economic events of its owners. 
D)  of every entity can be separately identified and accounted for.

Question 7

Presented below is the Trial Balance and Adjusted Trial Balance for Matsui Company on December 31.   Instructions
Prepare in journal form, with explanations, the adjusting entries that explain the changes in the balances from the trial balance to the adjusted trial balance.

Accepted Answer

@#IMG-DLM& @#IMG-DLM& (To reco

Question 8

State whether each situation is a prepaid expense (PE), unearned revenue (UR), accrued revenue (AR) or an accrued expense (AE).
1. Unrecorded interest on savings bonds is $245.
2. Property taxes that have been incurred but that have not yet been paid or recorded amount to $300.
3. Legal fees of $1,000 were collected in advance. By year end 60 percent were still unearned.
4. Prepaid insurance had a $500 balance prior to adjustment. By year end, 40 percent was still unexpired.

Accepted Answer

1. AR
2. A

Question 9

The non-current liability section of Gamma Company's statement of financial position includes the following accounts:   Gamma Company is an established company and does not experience any financial difficulties or have any cash flow problems. Discuss at least two items that are questionable as non-current liabilities.

Accepted Answer

Salaries Payable should not be reported

Question 10

The balance in the supplies account on June 1 was $5,200, supplies purchased during June were $3,500, and the supplies on hand at June 30 were $2,000. The amount to be used for the appropriate adjusting entry is

Accepted Answer

A)  $5,500. 
B)  $3,500. 
C)  $10,700. 
D)  $6,700. 
A)  $5,500. 
B)  $3,500. 
C)  $10,700. 
D)  $6,700.

Question 11

Hardwood Supplies Inc. purchased a 12-month insurance policy on March 1, 2014 for ₤ 1,500. At March 31, 2014, the adjusting journal entry to record expiration of this asset will include a

Accepted Answer

A)  debit to Prepaid Insurance and a credit to Cash for ₤ 1,500. 
B)  debit to Prepaid Insurance and a credit to Insurance Expense for ₤ 150. 
C)  debit to Insurance Expense and a credit to Prepaid Insurance for ₤ 125 
D)  debit to Insurance Expense and a credit to Cash for ₤ 125. 
A)  debit to Prepaid Insurance and a credit to Cash for ₤ 1,500. 
B)  debit to Prepaid Insurance and a credit to Insurance Expense for ₤ 150. 
C)  debit to Insurance Expense and a credit to Prepaid Insurance for ₤ 125 
D)  debit to Insurance Expense and a credit to Cash for ₤ 125.

Question 12

Adjusting entries are required

Accepted Answer

A)  yearly. 
B)  quarterly. 
C)  monthly. 
D)  every time financial statements are prepared. 
A)  yearly. 
B)  quarterly. 
C)  monthly. 
D)  every time financial statements are prepared.

Question 13

An adjusted trial balance

Accepted Answer

A)  is prepared after the financial statements are completed. 
B)  proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made. 
C)  is a required financial statement under IFRS. 
D)  cannot be used to prepare financial statements. 
A)  is prepared after the financial statements are completed. 
B)  proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made. 
C)  is a required financial statement under IFRS. 
D)  cannot be used to prepare financial statements.

Question 14

The periodicity assumption states

Accepted Answer

A)  the business will remain in operation for the foreseeable future. 
B)  the life of a business can be divided into artificial time periods and that useful reports covering those periods can be prepared. 
C)  every economic entity can be separately identified and accounted for. 
D)  only those things that can be expressed in money are included in the accounting records. 
A)  the business will remain in operation for the foreseeable future. 
B)  the life of a business can be divided into artificial time periods and that useful reports covering those periods can be prepared. 
C)  every economic entity can be separately identified and accounted for. 
D)  only those things that can be expressed in money are included in the accounting records.

Question 15

On January 2, 2014, National Credit and Cash purchased a general liability insurance policy for ₤4,800 for coverage for the calendar year. The entire ₤4,800 was charged to Insurance Expense on January 2, 2014. If the firm prepares monthly financial statements, the proper adjusting entry on January 31, 2014, will be:

Accepted Answer

The answer of On January 2, 2014, National Credit and...

Question 16

Adjusting entries are needed to enable financial statements to conform to International Financial Reporting Standards (IFRS).

Accepted Answer

A) True 
 B)False

Question 17

Which one of the following is not an enhancing quality of useful information?

Accepted Answer

A)  Timelines 
B)  Understand ability 
C)  Monetary Unit 
D)  Comparability 
A)  Timelines 
B)  Understand ability 
C)  Monetary Unit 
D)  Comparability

Question 18

The book value of a depreciable asset is always equal to its market value because depreciation is a valuation technique.

Accepted Answer

A) True 
 B)False

Question 19

Expenses paid and recorded as assets before they are used are called

Accepted Answer

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

Question 20

The difference between the cost of a depreciable asset and its related accumulated depreciation is referred to as the

Accepted Answer

A)  fair value of the asset. 
B)  blue book value of the asset. 
C)  book value of the asset. 
D)  depreciated difference of the asset. 
A)  fair value of the asset. 
B)  blue book value of the asset. 
C)  book value of the asset. 
D)  depreciated difference of the asset.

If an adjustment is needed for unearned revenues, the

BJ, an employee of Walker Corp., will not receive her paycheck until April 2. Based on services performed from March 16 to March 31, her salary was $800. The adjusting entry for Walker Corp. on March 31 is

In general, the shorter the time period, the difficulty of making the proper adjustments to accounts

What is Ling's 2013 net income using cash basis accounting?

Many business transactions affect more than one time period.

The economic entity assumption states that economic events

Presented below is the Trial Balance and Adjusted Trial Balance for Matsui Company on December 31. Instructions Prepare in journal form, with explanations, the adjusting entries that explain the changes in the balances from the trial balance to the adjusted trial balance.

The balance in the supplies account on June 1 was $5,200, supplies purchased during June were $3,500, and the supplies on hand at June 30 were $2,000. The amount to be used for the appropriate adjusting entry is

Hardwood Supplies Inc. purchased a 12-month insurance policy on March 1, 2014 for ₤ 1,500. At March 31, 2014, the adjusting journal entry to record expiration of this asset will include a

Adjusting entries are required

An adjusted trial balance

The periodicity assumption states

Adjusting entries are needed to enable financial statements to conform to International Financial Reporting Standards (IFRS).

Which one of the following is not an enhancing quality of useful information?

The book value of a depreciable asset is always equal to its market value because depreciation is a valuation technique.

Expenses paid and recorded as assets before they are used are called

The difference between the cost of a depreciable asset and its related accumulated depreciation is referred to as the

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

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Exam 3: Adjusting the Accounts

If an adjustment is needed for unearned revenues, the

BJ, an employee of Walker Corp., will not receive her paycheck until April 2. Based on services performed from March 16 to March 31, her salary was $800. The adjusting entry for Walker Corp. on March 31 is

In general, the shorter the time period, the difficulty of making the proper adjustments to accounts

What is Ling's 2013 net income using cash basis accounting?

Many business transactions affect more than one time period.

The economic entity assumption states that economic events

Presented below is the Trial Balance and Adjusted Trial Balance for Matsui Company on December 31. Instructions Prepare in journal form, with explanations, the adjusting entries that explain the changes in the balances from the trial balance to the adjusted trial balance.

The balance in the supplies account on June 1 was $5,200, supplies purchased during June were $3,500, and the supplies on hand at June 30 were $2,000. The amount to be used for the appropriate adjusting entry is

Hardwood Supplies Inc. purchased a 12-month insurance policy on March 1, 2014 for ₤ 1,500. At March 31, 2014, the adjusting journal entry to record expiration of this asset will include a

Adjusting entries are required

An adjusted trial balance

The periodicity assumption states

Adjusting entries are needed to enable financial statements to conform to International Financial Reporting Standards (IFRS).

Which one of the following is not an enhancing quality of useful information?

The book value of a depreciable asset is always equal to its market value because depreciation is a valuation technique.

Expenses paid and recorded as assets before they are used are called

The difference between the cost of a depreciable asset and its related accumulated depreciation is referred to as the

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