Exam 3: The Adjusting Process

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Smith Technical Services is working on a six-month job for a client, starting February 1. They will collect $30,000 from their customer when the job is finished. On March 1, their Accounts Receivable account had a debit balance of $5,000. At the end of March, after monthly adjusting entries have been made, what will be the balance in Accounts Receivable?

(Multiple Choice)

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Question 141

The entry to record depreciation includes a debit to:

(Multiple Choice)

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Question 142

The following extract was taken from the worksheet of Dutch Inc. for the year 2014. From the above information, determine the amount of the Rent Expense adjustment.

(Multiple Choice)

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Question 143

Ursula Tax Planning Service has the following plant assets: Communications equipment: Cost, $6,720 with useful life of 8 years; Furniture: Cost, $18,000 with useful life of 12 years; and Computer: Cost, $12,000 with useful life of 4 years. Assume the salvage value of all the assets is zero and the straight-line method is used. Ursula's monthly depreciation journal entry will include a:

(Multiple Choice)

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Question 144

The accountant of Isabella Consulting Company failed to make an adjusting entry to record $6,000 for unearned service revenues that were earned before the end of the fiscal year. Assume the company initially recorded a liability. Which of the following statements is true?

(Multiple Choice)

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Question 145

An adjusted trial balance does not list the revenues and expenses of a business.

(True/False)

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Question 146

Robert Rogers, CPA, performed accounting services for a client in December. A bill was mailed to the client on December 30. Roberts received a check by mail on January 5. As per the revenue recognition principle, the related account that should appear on the balance sheet as of December 31 is:

(Multiple Choice)

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Question 147

In cash basis accounting, revenue is recognized when cash is received and expenses are recognized when they are paid.

(True/False)

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Question 148

Revenue that has been earned but not yet collected in cash is called a(n):

(Multiple Choice)

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Question 149

Which of the following is considered a fiscal year?

(Multiple Choice)

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Question 150

Classic Artists' Services has hired a maintenance man to maintain a building they use for instruction. He will begin work on February 1 and work through till May 31. Classic Artists' will pay the maintenance man $4,000 at the end of May. It accrues Maintenance Expense at the end of every month. What is the balance in the Accounts Payable account for amounts owed to the maintenance man at the end of March?

(Multiple Choice)

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Question 151

Unearned revenue is revenue that:

(Multiple Choice)

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Question 152

Showing 141 - 152 of 152

The entry to record depreciation includes a debit to:

The following extract was taken from the worksheet of Dutch Inc. for the year 2014. From the above information, determine the amount of the Rent Expense adjustment.

The accountant of Isabella Consulting Company failed to make an adjusting entry to record $6,000 for unearned service revenues that were earned before the end of the fiscal year. Assume the company initially recorded a liability. Which of the following statements is true?

An adjusted trial balance does not list the revenues and expenses of a business.

Robert Rogers, CPA, performed accounting services for a client in December. A bill was mailed to the client on December 30. Roberts received a check by mail on January 5. As per the revenue recognition principle, the related account that should appear on the balance sheet as of December 31 is:

In cash basis accounting, revenue is recognized when cash is received and expenses are recognized when they are paid.

Revenue that has been earned but not yet collected in cash is called a(n):

Which of the following is considered a fiscal year?

Unearned revenue is revenue that:

Accounting and the Business Environment

Recording Business Transactions

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

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