Question 1

Which of the following is an example of a prepaid expense?

Accepted Answer

A)  Supplies 
B)  Accounts Receivable 
C)  Unearned Subscription Revenue 
D)  Unearned Fees 
A)  Supplies 
B)  Accounts Receivable 
C)  Unearned Subscription Revenue 
D)  Unearned Fees

Question 2

Match the type of account (a through e) with the business transactions that follow.
-Electric bill to be paid next month.

Accepted Answer

A) Prepaid expense 
B) Accrued expense 
C) Unearned revenue 
D) Accrued revenue 
E) None of these choices 
A) Prepaid expense 
B) Accrued expense 
C) Unearned revenue 
D) Accrued revenue 
E) None of these choices

Question 3

The supplies account balance on December 31, $4,750; supplies on hand, $960.3. Wages accrued but not paid, $2,700.4. Depreciation of office equipment, $1,650.5. Rent expired during year, $10,800.?

Accepted Answer

The answer of The supplies account balance on December 31,...

Question 4

The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is

Accepted Answer

A)  depreciation 
B)  deferral 
C)  accrual 
D)  inventory 
A)  depreciation 
B)  deferral 
C)  accrual 
D)  inventory

Question 5

The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry.

Accepted Answer

A)  Record payment of wages. 
B)  Record wages paid last month. 
C)  Record wages paid in advance. 
D)  Record wages expense incurred and to be paid next month. 
A)  Record payment of wages. 
B)  Record wages paid last month. 
C)  Record wages paid in advance. 
D)  Record wages expense incurred and to be paid next month.

Question 6

Match the type of account (a through e) with the business transactions that follow.
-Received six months of rental payments from a tenant.

Accepted Answer

A) Prepaid expense 
B) Accrued expense 
C) Unearned revenue 
D) Accrued revenue 
E) None of these choices 
A) Prepaid expense 
B) Accrued expense 
C) Unearned revenue 
D) Accrued revenue 
E) None of these choices

Question 7

Two income statements for Midnight Enterprises are shown below.?
(a) Prepare a vertical analysis of Midnight Enterprises' income statements.
(b) Does the vertical analysis indicate a favorable or unfavorable trend?

Accepted Answer

(a)? @#IMG-DLM&  (b) The vertical analysis is indi

Question 8

On January 2, Safe Motorcycling Monthly received a check for $72 from a subscriber for a 12-month subscription. The January issue was mailed on January 15. Prepare the necessary entries for the month of January.

Accepted Answer

​​ @#IMG-DLM& ​ @#IMG-DLM& The second entry can be

Question 9

The company determines that the interest expense on a note payable for the period ending December 31 is $775. This amount is payable on January 1. Prepare the journal entries required on December 31 and January 1.

Accepted Answer

The answer of The company determines that the interest expense...

Question 10

On November 15, Great Designs Company purchased an advertising campaign for the month of December. Great Designs paid cash of $2,700 in advance. The advertising campaign ran in December and was completed on December 31.​
(a) Prepare all necessary journal entries for the advertising campaign for November and December.
(b) Explain why you prepared this/these journal entries.

Accepted Answer

(a)Nov. 15Prepaid Advertising2,700Cash2,

Question 11

On January 1, Newman Company estimated its property tax to be $5,100 for the year.​
(a)How much should the company accrue each month for property taxes?
(b)Calculate the balance in Property Tax Payable as of August 31.
(c)Prepare the adjusting journal entry for September.

Accepted Answer

(a) $425 
($5,100/12)
(b) $3,4

Question 12

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet.
-A tenant paid six months' rent in advance when he moved in on the first day of the month. No entry was made on the last day of the month.

Accepted Answer

A) Assets and owner's equity overstated 
B) Assets and owner's equity understated 
C) Assets overstated and owner's equity understated 
D) Assets understated and owner's equity overstated 
E) Liabilities and owner's equity overstated
F)Liabilities and owner's equity understated
G)Liabilities overstated and owner's equity understated
H)Liabilities understated and owner's equity overstated 
A) Assets and owner's equity overstated 
B) Assets and owner's equity understated 
C) Assets overstated and owner's equity understated 
D) Assets understated and owner's equity overstated 
E) Liabilities and owner's equity overstated
F)Liabilities and owner's equity understated
G)Liabilities overstated and owner's equity understated
H)Liabilities understated and owner's equity overstated

Question 13

Adjusting entries affect at least one

Accepted Answer

A)  income statement account and one balance sheet account 
B)  revenue and the dividends account 
C)  asset and one owner's equity account 
D)  revenue and one owner's equity account 
A)  income statement account and one balance sheet account 
B)  revenue and the dividends account 
C)  asset and one owner's equity account 
D)  revenue and one owner's equity account

Question 14

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the following describes the effect of the credit portion of the entry?

Accepted Answer

A)  decreases the balance of an owner's equity account 
B)  increases the balance of a liability account 
C)  increases the balance of an asset account 
D)  decreases the balance of an expense account 
A)  decreases the balance of an owner's equity account 
B)  increases the balance of a liability account 
C)  increases the balance of an asset account 
D)  decreases the balance of an expense account

Question 15

Indicate with a Yes or No whether or not each of the following accounts would, under normal circumstances, require an adjusting entry.1. Cash2. Prepaid Expenses3. Depreciation Expense4. Accounts Payable5. Accumulated Depreciation6. Equipment

Accepted Answer

1. No2. Ye

Question 16

Which account would normally not require an adjusting entry?

Accepted Answer

A)  Wages Expense 
B)  Accounts Receivable 
C)  Accumulated Depreciation 
D)  Cash 
A)  Wages Expense 
B)  Accounts Receivable 
C)  Accumulated Depreciation 
D)  Cash

Question 17

Two income statements for Toby Sam Enterprises are shown below.​Prepare a vertical analysis of Toby Sam Enterprises' income statements. Has operating income increased or decreased as a percentage of revenue?

Accepted Answer

A)  increased by 5% 
B)  increased by 111% 
C)  decreased by 5% 
D)  decreased by 111% 
A)  increased by 5% 
B)  increased by 111% 
C)  decreased by 5% 
D)  decreased by 111%

Question 18

Which of the following pairs of accounts could not appear in the same adjusting entry?

Accepted Answer

A)  Fees Earned and Unearned Fees 
B)  Interest Income and Interest Expense 
C)  Rent Expense and Prepaid Rent 
D)  Salaries Payable and Salaries Expense 
A)  Fees Earned and Unearned Fees 
B)  Interest Income and Interest Expense 
C)  Rent Expense and Prepaid Rent 
D)  Salaries Payable and Salaries Expense

Question 19

Accrued expenses affect ________ on the balance sheet.

Accepted Answer

A)  assets 
B)  liabilities 
C)  fixed assets 
D)  prepaid expenses 
A)  assets 
B)  liabilities 
C)  fixed assets 
D)  prepaid expenses

Question 20

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet.
-Depreciation on equipment was not recorded.

Accepted Answer

A) Assets and owner's equity overstated 
B) Assets and owner's equity understated 
C) Assets overstated and owner's equity understated 
D) Assets understated and owner's equity overstated 
E) Liabilities and owner's equity overstated
F)Liabilities and owner's equity understated
G)Liabilities overstated and owner's equity understated
H)Liabilities understated and owner's equity overstated 
A) Assets and owner's equity overstated 
B) Assets and owner's equity understated 
C) Assets overstated and owner's equity understated 
D) Assets understated and owner's equity overstated 
E) Liabilities and owner's equity overstated
F)Liabilities and owner's equity understated
G)Liabilities overstated and owner's equity understated
H)Liabilities understated and owner's equity overstated

Exam 3: The Adjusting Process

Which of the following is an example of a prepaid expense?

Match the type of account (a through e) with the business transactions that follow. -Electric bill to be paid next month.

The supplies account balance on December 31, $4,750; supplies on hand, $960.3. Wages accrued but not paid, $2,700.4. Depreciation of office equipment, $1,650.5. Rent expired during year, $10,800.?

The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is

The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry.

Match the type of account (a through e) with the business transactions that follow. -Received six months of rental payments from a tenant.

Two income statements for Midnight Enterprises are shown below.? (a) Prepare a vertical analysis of Midnight Enterprises' income statements. (b) Does the vertical analysis indicate a favorable or unfavorable trend?

On January 2, Safe Motorcycling Monthly received a check for $72 from a subscriber for a 12-month subscription. The January issue was mailed on January 15. Prepare the necessary entries for the month of January.

The company determines that the interest expense on a note payable for the period ending December 31 is $775. This amount is payable on January 1. Prepare the journal entries required on December 31 and January 1.

On January 1, Newman Company estimated its property tax to be $5,100 for the year.​ (a)How much should the company accrue each month for property taxes? (b)Calculate the balance in Property Tax Payable as of August 31. (c)Prepare the adjusting journal entry for September.

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet. -A tenant paid six months' rent in advance when he moved in on the first day of the month. No entry was made on the last day of the month.

Adjusting entries affect at least one

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the following describes the effect of the credit portion of the entry?

Indicate with a Yes or No whether or not each of the following accounts would, under normal circumstances, require an adjusting entry.1. Cash2. Prepaid Expenses3. Depreciation Expense4. Accounts Payable5. Accumulated Depreciation6. Equipment

Which account would normally not require an adjusting entry?

Two income statements for Toby Sam Enterprises are shown below.​Prepare a vertical analysis of Toby Sam Enterprises' income statements. Has operating income increased or decreased as a percentage of revenue?

Which of the following pairs of accounts could not appear in the same adjusting entry?

Accrued expenses affect ________ on the balance sheet.

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet. -Depreciation on equipment was not recorded.

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters

On January 1, Newman Company estimated its property tax to be $5,100 for the year. (a)How much should the company accrue each month for property taxes? (b)Calculate the balance in Property Tax Payable as of August 31. (c)Prepare the adjusting journal entry for September.

Two income statements for Toby Sam Enterprises are shown below.Prepare a vertical analysis of Toby Sam Enterprises' income statements. Has operating income increased or decreased as a percentage of revenue?