Question 1

Before adjusting for accrued revenues, both assets and equity are understated

Accepted Answer

A) True 
 B)False

Question 2

A contra-asset account has a normal debit balance

Accepted Answer

A) True 
 B)False

Question 3

Identify and explain the reasons for the order in which financial statements areprepared.

Accepted Answer

The income statement is prepared first.

Question 4

Computerized accounting systems should include controls to show when and wherecorrections are made.

Accepted Answer

A) True 
 B)False

Question 5

For a prepaid expense, the adjusting entry would

Accepted Answer

A) Cause a prepaid expense to be overstated and liabilities to be understated. 
B) Decrease cash. 
C) Result in a debit to an expense account and a credit to an asset account. 
D) Result in a debit to a liability account and a credit to an asset account. 
E) Result in a credit to an expense account and a debit to an asset account. 
A) Cause a prepaid expense to be overstated and liabilities to be understated. 
B) Decrease cash. 
C) Result in a debit to an expense account and a credit to an asset account. 
D) Result in a debit to a liability account and a credit to an asset account. 
E) Result in a credit to an expense account and a debit to an asset account.

Question 6

Accepted Answer

The answer of    ...

Question 7

The 12 consecutive months (or 52 weeks)selected as an organization's accountingperiod is called the fiscal year.

Accepted Answer

A) True 
 B)False

Question 8

Premium revenue for 2018 is

Accepted Answer

A) $60 
B) $900 
C) $1,440 
D) $360 
E) $540 
A) $60 
B) $900 
C) $1,440 
D) $360 
E) $540

Question 9

Salaries earned by employees, but unrecorded, are an example of an accrued expense

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is incorrect?

Accepted Answer

A) The fiscal year is any 12 consecutive months used by a business as its annual accounting period. 
B) Property, plant, and equipment are long term assets. 
C) Interim financial reports can be based on one-month or three-month accounting periods. 
D) An adjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments. 
E) The cash basis of accounting is consistent with GAAP. 
A) The fiscal year is any 12 consecutive months used by a business as its annual accounting period. 
B) Property, plant, and equipment are long term assets. 
C) Interim financial reports can be based on one-month or three-month accounting periods. 
D) An adjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments. 
E) The cash basis of accounting is consistent with GAAP.

Question 11

Depreciation expense is an example of accrued expense

Accepted Answer

A) True 
 B)False

Question 12

Cesar Cielo's consulting business receives an advance payment of 70% ofservices to be performed. In August, Cesar agreed to perform $20,000 worth of services to be performed in September. Record the entry for the receipt of cash during the month of August.

Accepted Answer

The answer of Cesar Cielo's consulting business receives an advance...

Question 13

Vanderet's Computer Business owns computer equipment which cost $3,240 and has an expected useful life of three years. No residual value is expected. At the company's year end, December 31, the equipment's book value is $2,520. In what month was thecomputer purchased using the straight-line depreciation method?

Accepted Answer

A) August 
B) January 
C) March 
D) June 
E) M ay 
A) August 
B) January 
C) March 
D) June 
E) M ay

Question 14

A receipt of $15,700 cash from a customer as a payment on account was incorrectly credit to service revenue. Which is the effect of this error on the company's financial statements?

Accepted Answer

A) Assets are understated by $15,700 and liabilities are understated by $15,700. 
B) Assets are overstated by $31,400 and owners' equity is overstated by $31,400. 
C) Assets are understated by $31,400 and liabilities are understated by $31,400. 
D) Assets are overstated by $15,700 and owners' equity is overstated by $15,700. 
E) Assets are understated by $15,700 and owners' equity is understated by $15,700. 
A) Assets are understated by $15,700 and liabilities are understated by $15,700. 
B) Assets are overstated by $31,400 and owners' equity is overstated by $31,400. 
C) Assets are understated by $31,400 and liabilities are understated by $31,400. 
D) Assets are overstated by $15,700 and owners' equity is overstated by $15,700. 
E) Assets are understated by $15,700 and owners' equity is understated by $15,700.

Question 15

Which of the following does not require an adjusting entry at year-end? 114)

Accepted Answer

A) Expired portion of prepaid insurance. 
B) Accrued interest on notes payable. 
C) Accrued wages. 
D) Cash invested by owner. 
E) Supplies used during the period. 
A) Expired portion of prepaid insurance. 
B) Accrued interest on notes payable. 
C) Accrued wages. 
D) Cash invested by owner. 
E) Supplies used during the period.

Question 16

During August, Gallery Corp. purchased $4,000 worth of supplies. At August 31 the adjusted balance in the Supplies account was $2,800. The adjusting entry included a$1,200 debit to Supplies Expense.

Accepted Answer

A) True 
 B)False

Question 17

A company's fiscal year must correspond with the calendar year

Accepted Answer

A) True 
 B)False

Question 18

Identify the types of adjusting entries and explain the purpose of each type

Accepted Answer

There are two major types of adjusting e

Question 19

Which of the following would be the effect of a transaction to expense Supplies for the period?

Accepted Answer

A) Increase Supplies, Decrease Supplies expense. 
B) Increase Supplies, Decrease Cash. 
C) Increase Supplies expense, Decrease Cash. 
D) Decrease Supplies expense, Decrease Cash. 
E) Increase Supplies expense, Decrease Supplies. 
A) Increase Supplies, Decrease Supplies expense. 
B) Increase Supplies, Decrease Cash. 
C) Increase Supplies expense, Decrease Cash. 
D) Decrease Supplies expense, Decrease Cash. 
E) Increase Supplies expense, Decrease Supplies.

Question 20

The adjusted trial balance contains information pertaining to

Accepted Answer

A) Income statement accounts only. 
B) All general ledger accounts. 
C) Asset accounts only. 
D) Revenue accounts only. 
E) Balance sheet accounts only. 
A) Income statement accounts only. 
B) All general ledger accounts. 
C) Asset accounts only. 
D) Revenue accounts only. 
E) Balance sheet accounts only.

Before adjusting for accrued revenues, both assets and equity are understated

A contra-asset account has a normal debit balance

Identify and explain the reasons for the order in which financial statements areprepared.

Computerized accounting systems should include controls to show when and wherecorrections are made.

For a prepaid expense, the adjusting entry would

The 12 consecutive months (or 52 weeks)selected as an organization's accountingperiod is called the fiscal year.

Premium revenue for 2018 is

Salaries earned by employees, but unrecorded, are an example of an accrued expense

Which of the following statements is incorrect?

Depreciation expense is an example of accrued expense

Cesar Cielo's consulting business receives an advance payment of 70% ofservices to be performed. In August, Cesar agreed to perform $20,000 worth of services to be performed in September. Record the entry for the receipt of cash during the month of August.

A receipt of $15,700 cash from a customer as a payment on account was incorrectly credit to service revenue. Which is the effect of this error on the company's financial statements?

Which of the following does not require an adjusting entry at year-end? 114)

During August, Gallery Corp. purchased $4,000 worth of supplies. At August 31 the adjusted balance in the Supplies account was $2,800. The adjusting entry included a$1,200 debit to Supplies Expense.

A company's fiscal year must correspond with the calendar year

Identify the types of adjusting entries and explain the purpose of each type

Which of the following would be the effect of a transaction to expense Supplies for the period?

The adjusted trial balance contains information pertaining to

Accounting in Business

Analyzing and Recording Transactions

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters

Exam 3: Adjusting Accounts for Financial Statements

Before adjusting for accrued revenues, both assets and equity are understated

A contra-asset account has a normal debit balance

Identify and explain the reasons for the order in which financial statements areprepared.

Computerized accounting systems should include controls to show when and wherecorrections are made.

For a prepaid expense, the adjusting entry would

The 12 consecutive months (or 52 weeks)selected as an organization's accountingperiod is called the fiscal year.

Premium revenue for 2018 is

Salaries earned by employees, but unrecorded, are an example of an accrued expense

Which of the following statements is incorrect?

Depreciation expense is an example of accrued expense

Cesar Cielo's consulting business receives an advance payment of 70% ofservices to be performed. In August, Cesar agreed to perform $20,000 worth of services to be performed in September. Record the entry for the receipt of cash during the month of August.

A receipt of $15,700 cash from a customer as a payment on account was incorrectly credit to service revenue. Which is the effect of this error on the company's financial statements?

Which of the following does not require an adjusting entry at year-end? 114)

During August, Gallery Corp. purchased $4,000 worth of supplies. At August 31 the adjusted balance in the Supplies account was $2,800. The adjusting entry included a$1,200 debit to Supplies Expense.

A company's fiscal year must correspond with the calendar year

Identify the types of adjusting entries and explain the purpose of each type

Which of the following would be the effect of a transaction to expense Supplies for the period?

The adjusted trial balance contains information pertaining to

Accounting in Business

Analyzing and Recording Transactions

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters