Question 1

When a prepaid expense is initially debited to an expense account, expenses and assets are both overstated prior to adjustment.

Accepted Answer

A) True 
 B)False

Question 2

If a business has several types of long-term assets such as equipment, buildings, and trucks,

Accepted Answer

A) there should be only one accumulated depreciation account. 
B) there should be a separate accumulated depreciation account for each type of asset. 
C) all the long-term asset accounts will be recorded in one general ledger account. 
D) there won't be a need for an accumulated depreciation account. 
A) there should be only one accumulated depreciation account. 
B) there should be a separate accumulated depreciation account for each type of asset. 
C) all the long-term asset accounts will be recorded in one general ledger account. 
D) there won't be a need for an accumulated depreciation account.

Question 3

In an adjusted trial balance, all assets and liabilities reported on the statement of financial position are properly stated.

Accepted Answer

A) True 
 B)False

Question 4

Accrued expenses are

Accepted Answer

A) paid and recorded in an asset account before they are used or consumed. 
B) paid and recorded in an asset account after they are used or consumed. 
C) incurred but not yet paid or recorded. 
D) incurred and already paid or recorded. 
A) paid and recorded in an asset account before they are used or consumed. 
B) paid and recorded in an asset account after they are used or consumed. 
C) incurred but not yet paid or recorded. 
D) incurred and already paid or recorded.

Question 5

RAS Corporation issued a one-year, 12%, €200,000 note on August 31, 2011.Interest expense for the year ended December 31, 2011 was

Accepted Answer

A) € 24,000. 
B) € 10,000. 
C) € 8,000. 
D) € 6,000. 
A) € 24,000. 
B) € 10,000. 
C) € 8,000. 
D) € 6,000.

Question 6

The ______________ assumption divides the economic life of a business into artificial time periods.

Accepted Answer

The answer of The ______________ assumption divides the economic life...

Question 7

On January 2, 2011, National Credit and Cash purchased a general liability insurance policy for $ £ 3,600 $ for coverage for the calendar year. The entire $ £ 3,600 $ was charged to Insurance Expense on January 2, 2011. If the firm prepares monthly financial statements, the proper adjusting entry on January 31, 2011, will be:

Accepted Answer

A)   
B)   
C)   
D)   
A)   
B)   
C)   
D)

When a prepaid expense is initially debited to an expense account, expenses and assets are both overstated prior to adjustment.

If a business has several types of long-term assets such as equipment, buildings, and trucks,

In an adjusted trial balance, all assets and liabilities reported on the statement of financial position are properly stated.

Accrued expenses are

RAS Corporation issued a one-year, 12%, €200,000 note on August 31, 2011.Interest expense for the year ended December 31, 2011 was

The ______________ assumption divides the economic life of a business into artificial time periods.

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

Payroll Accounting

Other Significant Liabilities

Filters

Exam 3: Adjusting the Accounts

When a prepaid expense is initially debited to an expense account, expenses and assets are both overstated prior to adjustment.

If a business has several types of long-term assets such as equipment, buildings, and trucks,

In an adjusted trial balance, all assets and liabilities reported on the statement of financial position are properly stated.

Accrued expenses are

RAS Corporation issued a one-year, 12%, €200,000 note on August 31, 2011.Interest expense for the year ended December 31, 2011 was

The ______________ assumption divides the economic life of a business into artificial time periods.

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

Payroll Accounting

Other Significant Liabilities

Filters