Question 1

Respectively, Cash, Rent Expense and Accounts Payable are:

Accepted Answer

A) all permanent accounts. 
B) permanent, temporary, and temporary accounts. 
C) temporary, permanent, and temporary accounts. 
D) permanent, temporary, and permanent accounts. 
A) all permanent accounts. 
B) permanent, temporary, and temporary accounts. 
C) temporary, permanent, and temporary accounts. 
D) permanent, temporary, and permanent accounts.

Question 2

Recording Social Security Taxes Payable would be an example of a(n):

Accepted Answer

A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue. 
A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue.

Question 3

Which of the following accounts is NOT affected by an accrued expense?

Accepted Answer

A) Sales Tax Payable 
B) Supplies 
C) Interest Expense 
D) Wages Payable 
A) Sales Tax Payable 
B) Supplies 
C) Interest Expense 
D) Wages Payable

Question 4

Under accrual accounting, the most important GAAP concepts to remember are the recognition principle for expenses and the matching principle for revenues.

Accepted Answer

A) True 
 B)False

Question 5

Recording Unearned Subscriptions Revenue would be an example of a(n):

Accepted Answer

A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue. 
A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue.

Question 6

The Statement of Retained Earnings that is prepared from the adjusted trial balance begins with the:

Accepted Answer

A) first stock account listed on the adjusted trial balance. 
B) Retained Earnings balance on the adjusted trial balance. 
C) first dividend account listed on the adjusted trial balance. 
D) net income listed on the adjusted trial balance. 
A) first stock account listed on the adjusted trial balance. 
B) Retained Earnings balance on the adjusted trial balance. 
C) first dividend account listed on the adjusted trial balance. 
D) net income listed on the adjusted trial balance.

Question 7

An example of a contra-account would be Accumulated Depreciation.

Accepted Answer

A) True 
 B)False

Question 8

Dogs R' Us walked 11 dogs a week this past month. They charge $11 per walk. The company's only expenses incurred during the month were $180 wages, $26 for waste bags, and $18 to repair a broken leash. The wages and leash replacement were paid during the month, but the waste bags were not. What is Dogs R' Us' net income or loss for the month? (Assume four weeks in the month.)

Accepted Answer

A) It is impossible to determine from the given information. 
B) $103 net loss 
C) $260 net income 
D) $304 net income 
A) It is impossible to determine from the given information. 
B) $103 net loss 
C) $260 net income 
D) $304 net income

Question 9

Closing entries included debits to revenues for a total of $8,000 credits to expenses for a total of $4,100, and a credit to dividends for $650. The net change in Retained Earnings for the month was:

Accepted Answer

A) cannot be calculated with the information provided. 
B) $3,250. 
C) $3,900. 
D) $4,550. 
A) cannot be calculated with the information provided. 
B) $3,250. 
C) $3,900. 
D) $4,550.

Question 10

The value of an asset after all allowable depreciation has been taken is called:

Accepted Answer

A) depreciable value. 
B) market value. 
C) salvage value. 
D) trade-in value. 
A) depreciable value. 
B) market value. 
C) salvage value. 
D) trade-in value.

Question 11

The total dollars in an Accumulated Depreciation account are:

Accepted Answer

A) added to the corresponding asset account. 
B) divided into the corresponding asset account. 
C) subtracted from the corresponding asset account. 
D) subtracted from the corresponding liability account. 
A) added to the corresponding asset account. 
B) divided into the corresponding asset account. 
C) subtracted from the corresponding asset account. 
D) subtracted from the corresponding liability account.

Question 12

A period of time, such as a month or quarter, could be considered a(n):

Accepted Answer

A) fiscal year. 
B) accounting period. 
C) revenue period. 
D) income period. 
A) fiscal year. 
B) accounting period. 
C) revenue period. 
D) income period.

Question 13

GAAP requires the use of accrual accounting.

Accepted Answer

A) True 
 B)False

Question 14

Recording Income Taxes Payable would be an example of a(n):

Accepted Answer

A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue. 
A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue.

Question 15

The unadjusted trial balance reflects a normal balance for Wages Expense of $750. Accrued wages for the period are $1,345. The adjusted balance for Wages Expense is now a:

Accepted Answer

A) $595 debit. 
B) $595 credit. 
C) $2,095 debit. 
D) $2,095 credit. 
A) $595 debit. 
B) $595 credit. 
C) $2,095 debit. 
D) $2,095 credit.

Question 16

The entry to close the expense accounts includes:

Accepted Answer

A) a debit to Retained Earnings and credits to the respective expense accounts. 
B) a debit to Dividends and credits to the respective expense accounts. 
C) debits to the respective expense accounts and a credit to Retained Earnings. 
D) debits to the respective expense accounts and a credit to Dividends. 
A) a debit to Retained Earnings and credits to the respective expense accounts. 
B) a debit to Dividends and credits to the respective expense accounts. 
C) debits to the respective expense accounts and a credit to Retained Earnings. 
D) debits to the respective expense accounts and a credit to Dividends.

Question 17

Adjusting entries always include a debit or credit to Cash.

Accepted Answer

A) True 
 B)False

Question 18

When cash is paid prior to incurring an expense, it is a deferral.

Accepted Answer

A) True 
 B)False

Question 19

Unearned Ticket Revenue must be adjusted to show how much of the deferred revenue has been earned during the period.

Accepted Answer

A) True 
 B)False

Question 20

________ entries transfer net income or net loss and dividends to the Retained Earnings account.

Accepted Answer

A) Adjusting 
B) Closing 
C) General 
D) Timely 
A) Adjusting 
B) Closing 
C) General 
D) Timely

Respectively, Cash, Rent Expense and Accounts Payable are:

Recording Social Security Taxes Payable would be an example of a(n):

Which of the following accounts is NOT affected by an accrued expense?

Under accrual accounting, the most important GAAP concepts to remember are the recognition principle for expenses and the matching principle for revenues.

Recording Unearned Subscriptions Revenue would be an example of a(n):

The Statement of Retained Earnings that is prepared from the adjusted trial balance begins with the:

An example of a contra-account would be Accumulated Depreciation.

Closing entries included debits to revenues for a total of $8,000 credits to expenses for a total of $4,100, and a credit to dividends for $650. The net change in Retained Earnings for the month was:

The value of an asset after all allowable depreciation has been taken is called:

The total dollars in an Accumulated Depreciation account are:

A period of time, such as a month or quarter, could be considered a(n):

GAAP requires the use of accrual accounting.

Recording Income Taxes Payable would be an example of a(n):

The unadjusted trial balance reflects a normal balance for Wages Expense of $750. Accrued wages for the period are $1,345. The adjusted balance for Wages Expense is now a:

The entry to close the expense accounts includes:

Adjusting entries always include a debit or credit to Cash.

When cash is paid prior to incurring an expense, it is a deferral.

Unearned Ticket Revenue must be adjusted to show how much of the deferred revenue has been earned during the period.

________ entries transfer net income or net loss and dividends to the Retained Earnings account.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

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Exam 3: Adjusting and Closing Entries

Respectively, Cash, Rent Expense and Accounts Payable are:

Recording Social Security Taxes Payable would be an example of a(n):

Which of the following accounts is NOT affected by an accrued expense?

Under accrual accounting, the most important GAAP concepts to remember are the recognition principle for expenses and the matching principle for revenues.

Recording Unearned Subscriptions Revenue would be an example of a(n):

The Statement of Retained Earnings that is prepared from the adjusted trial balance begins with the:

An example of a contra-account would be Accumulated Depreciation.

Closing entries included debits to revenues for a total of $8,000 credits to expenses for a total of $4,100, and a credit to dividends for $650. The net change in Retained Earnings for the month was:

The value of an asset after all allowable depreciation has been taken is called:

The total dollars in an Accumulated Depreciation account are:

A period of time, such as a month or quarter, could be considered a(n):

GAAP requires the use of accrual accounting.

Recording Income Taxes Payable would be an example of a(n):

The unadjusted trial balance reflects a normal balance for Wages Expense of $750. Accrued wages for the period are $1,345. The adjusted balance for Wages Expense is now a:

The entry to close the expense accounts includes:

Adjusting entries always include a debit or credit to Cash.

When cash is paid prior to incurring an expense, it is a deferral.

Unearned Ticket Revenue must be adjusted to show how much of the deferred revenue has been earned during the period.

________ entries transfer net income or net loss and dividends to the Retained Earnings account.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters