Question 1

Accumulated Depreciation is a liability account and has a credit normal account balance.

Accepted Answer

A) True 
 B)False

Question 2

The following information is from the Income Statement of the Dirt Poor Laundry Service:   The entry to close the Service Revenue account includes a:

Accepted Answer

A)  debit to Service Revenue for $5,500. 
B)  credit to Service Revenue for $5,500. 
C)  debit to Income Summary for $5,500. 
D)  debit to Retained Earnings for $5,500. 
A)  debit to Service Revenue for $5,500. 
B)  credit to Service Revenue for $5,500. 
C)  debit to Income Summary for $5,500. 
D)  debit to Retained Earnings for $5,500.

Question 3

The following information is from the Income Statement of the Dirt Poor Laundry Service:   The entry to close the expense accounts includes a:

Accepted Answer

A)  credit to Income Summary for $3,050. 
B)  debit to Income Summary for $3,050. 
C)  debit to Salaries and Wages Expense for $1,950. 
D)  credit to Retained Earnings for $3,050. 
A)  credit to Income Summary for $3,050. 
B)  debit to Income Summary for $3,050. 
C)  debit to Salaries and Wages Expense for $1,950. 
D)  credit to Retained Earnings for $3,050.

Question 4

A company usually determines the amount of supplies used during a period by:

Accepted Answer

A)  adding the supplies on hand to the balance of the Supplies account. 
B)  summing the amount of supplies purchased during the period. 
C)  taking the difference between the supplies purchased and the supplies paid for during the period. 
D)  taking the difference between the balance of the Supplies account and the cost of supplies on hand. 
A)  adding the supplies on hand to the balance of the Supplies account. 
B)  summing the amount of supplies purchased during the period. 
C)  taking the difference between the supplies purchased and the supplies paid for during the period. 
D)  taking the difference between the balance of the Supplies account and the cost of supplies on hand.

Question 5

The trial balance for Greenway Corporation appears as follows:   If the estimated depreciation for equipment were $800, the adjusting entry would contain a:

Accepted Answer

A)  credit to Accumulated Depreciation, Equipment for $800. 
B)  credit to Depreciation Expense, Equipment for $800. 
C)  debit to Accumulated Depreciation, Equipment for $800. 
D)  credit to Equipment for $800. 
A)  credit to Accumulated Depreciation, Equipment for $800. 
B)  credit to Depreciation Expense, Equipment for $800. 
C)  debit to Accumulated Depreciation, Equipment for $800. 
D)  credit to Equipment for $800.

Question 6

The adjusted trial balance shown below is for Rich Company at the end of its fiscal year:   Instructions:
Prepare the closing entries for the temporary accounts at March 31.

Accepted Answer

The answer of The adjusted trial balance shown below is...

Question 7

The ______________ assumption states that the economic life of a business can be divided into artificial time periods.

Accepted Answer

The answer of The ______________ assumption states that the economic...

Question 8

If a company fails to adjust for accrued expenses, what effect will this have on that month's financial statements?

Accepted Answer

A)  Failure to make an adjustment does not affect the financial statements. 
B)  Expenses will be understated and net income and stockholders' equity will be over- stated. 
C)  Assets will be overstated and net income and stockholders' equity will be under-stated. 
D)  Assets will be overstated and net income and stockholders' equity will be overstated. 
A)  Failure to make an adjustment does not affect the financial statements. 
B)  Expenses will be understated and net income and stockholders' equity will be over- stated. 
C)  Assets will be overstated and net income and stockholders' equity will be under-stated. 
D)  Assets will be overstated and net income and stockholders' equity will be overstated.

Question 9

Accrued revenues are:

Accepted Answer

A)  received and recorded as liabilities before they are recognized. 
B)  recognized and recorded as liabilities before they are received. 
C)  recognized but not yet received or recorded. 
D)  recognized and already received and recorded. 
A)  received and recorded as liabilities before they are recognized. 
B)  recognized and recorded as liabilities before they are received. 
C)  recognized but not yet received or recorded. 
D)  recognized and already received and recorded.

Question 10

Regions Inc. pays its rent of $48,000 annually on January 1 and makes monthly adjusting entries. If the February 28 monthly adjusting entry for prepaid rent is omitted, which of the following are true?

Accepted Answer

A)  Failure to make the adjustment does not affect the February financial statements. 
B)  Expenses will be overstated by $4,000 and net income and stockholders' equity will be understated by $4,000. 
C)  Assets will be overstated by $8,000 and net income and stockholders' equity will be understated by $8,000. 
D)  Assets will be overstated by $4,000 and net income and stockholders' equity will be overstated by $4,000. 
A)  Failure to make the adjustment does not affect the February financial statements. 
B)  Expenses will be overstated by $4,000 and net income and stockholders' equity will be understated by $4,000. 
C)  Assets will be overstated by $8,000 and net income and stockholders' equity will be understated by $8,000. 
D)  Assets will be overstated by $4,000 and net income and stockholders' equity will be overstated by $4,000.

Question 11

If prepaid costs are initially recorded as an asset, no adjusting entries will be required in the future.

Accepted Answer

A) True 
 B)False

Question 12

The primary difference between accrued revenues and unearned revenues is that accrued revenues have:

Accepted Answer

A)  not been recognized and accrued revenues have been. 
B)  been paid and unearned revenues have not. 
C)  been recorded and unearned revenues have not. 
D)  not been recorded and unearned revenues have. 
A)  not been recognized and accrued revenues have been. 
B)  been paid and unearned revenues have not. 
C)  been recorded and unearned revenues have not. 
D)  not been recorded and unearned revenues have.

Accumulated Depreciation is a liability account and has a credit normal account balance.

The following information is from the Income Statement of the Dirt Poor Laundry Service: The entry to close the Service Revenue account includes a:

The following information is from the Income Statement of the Dirt Poor Laundry Service: The entry to close the expense accounts includes a:

A company usually determines the amount of supplies used during a period by:

The trial balance for Greenway Corporation appears as follows: If the estimated depreciation for equipment were $800, the adjusting entry would contain a:

The adjusted trial balance shown below is for Rich Company at the end of its fiscal year: Instructions: Prepare the closing entries for the temporary accounts at March 31.

The ______________ assumption states that the economic life of a business can be divided into artificial time periods.

If a company fails to adjust for accrued expenses, what effect will this have on that month's financial statements?

Accrued revenues are:

Regions Inc. pays its rent of $48,000 annually on January 1 and makes monthly adjusting entries. If the February 28 monthly adjusting entry for prepaid rent is omitted, which of the following are true?

If prepaid costs are initially recorded as an asset, no adjusting entries will be required in the future.

The primary difference between accrued revenues and unearned revenues is that accrued revenues have:

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments and Acquisitions in Accounting

Filters

Exam 4: Accrual Accounting Concepts

Accumulated Depreciation is a liability account and has a credit normal account balance.

The following information is from the Income Statement of the Dirt Poor Laundry Service: The entry to close the Service Revenue account includes a:

The following information is from the Income Statement of the Dirt Poor Laundry Service: The entry to close the expense accounts includes a:

A company usually determines the amount of supplies used during a period by:

The trial balance for Greenway Corporation appears as follows: If the estimated depreciation for equipment were $800, the adjusting entry would contain a:

The adjusted trial balance shown below is for Rich Company at the end of its fiscal year: Instructions: Prepare the closing entries for the temporary accounts at March 31.

The ______________ assumption states that the economic life of a business can be divided into artificial time periods.

If a company fails to adjust for accrued expenses, what effect will this have on that month's financial statements?

Accrued revenues are:

Regions Inc. pays its rent of $48,000 annually on January 1 and makes monthly adjusting entries. If the February 28 monthly adjusting entry for prepaid rent is omitted, which of the following are true?

If prepaid costs are initially recorded as an asset, no adjusting entries will be required in the future.

The primary difference between accrued revenues and unearned revenues is that accrued revenues have:

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments and Acquisitions in Accounting

Filters