Question 1

Adjusting entries affect balance sheet accounts to the exclusion of income statement accounts.

Accepted Answer

A) True 
 B)False

Question 2

The adjusting entry for gym memberships earned that were previously recorded in the unearned gym memberships account is

Accepted Answer

A) debit Unearned Gym Memberships; credit Gym Memberships Revenue 
B) debit Gym Memberships Revenue; credit Unearned Gym Memberships 
C) debit Unearned Gym Memberships; credit Prepaid Gym Memberships 
D) debit Gym Memberships Expense; credit Unearned Gym Memberships 
A) debit Unearned Gym Memberships; credit Gym Memberships Revenue 
B) debit Gym Memberships Revenue; credit Unearned Gym Memberships 
C) debit Unearned Gym Memberships; credit Prepaid Gym Memberships 
D) debit Gym Memberships Expense; credit Unearned Gym Memberships

Question 3

An adjusting entry would adjust an expense account so the expense is reported when incurred.

Accepted Answer

A) True 
 B)False

Question 4

At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following is true?

Accepted Answer

A) total assets will be understated at the end of the current year 
B) the balance sheet and income statement will be misstated but the statement of stockholders' equity will be correct for the current year 
C) net income will be overstated for the current year 
D) total liabilities and total assets will be understated 
A) total assets will be understated at the end of the current year 
B) the balance sheet and income statement will be misstated but the statement of stockholders' equity will be correct for the current year 
C) net income will be overstated for the current year 
D) total liabilities and total assets will be understated

Question 5

All of the following statements regarding vertical analysis are true except

Accepted Answer

A) vertical analysis may be prepared for several periods to analyze changes in relationships over time 
B) in a vertical analysis of a balance sheet, each asset item is stated as a percent of total assets 
C) in a vertical analysis of an income statement, each item is stated as a percent of total expenses 
D) major differences between a company's vertical analysis and industry averages should be investigated 
A) vertical analysis may be prepared for several periods to analyze changes in relationships over time 
B) in a vertical analysis of a balance sheet, each asset item is stated as a percent of total assets 
C) in a vertical analysis of an income statement, each item is stated as a percent of total expenses 
D) major differences between a company's vertical analysis and industry averages should be investigated

Adjusting entries affect balance sheet accounts to the exclusion of income statement accounts.

The adjusting entry for gym memberships earned that were previously recorded in the unearned gym memberships account is

An adjusting entry would adjust an expense account so the expense is reported when incurred.

At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following is true?

All of the following statements regarding vertical analysis are true except

Introduction to Accounting and Business

Analyzing Transactions

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Support Department and Joint Cost Allocation

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

The Balanced Scorecard and Corporate Social Responsibility

Investments

Filters

Exam 3: The Adjusting Process

Adjusting entries affect balance sheet accounts to the exclusion of income statement accounts.

The adjusting entry for gym memberships earned that were previously recorded in the unearned gym memberships account is

An adjusting entry would adjust an expense account so the expense is reported when incurred.

At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following is true?

All of the following statements regarding vertical analysis are true except

Introduction to Accounting and Business

Analyzing Transactions

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Support Department and Joint Cost Allocation

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

The Balanced Scorecard and Corporate Social Responsibility

Investments

Filters