Question 1

Using accrual accounting,revenue is recorded and reported only

Accepted Answer

A) when cash is received without regard to when the services are rendered 
B) when the services are rendered without regard to when cash is received 
C) when cash is received at the time services are rendered 
D) if cash is received after the services are rendered 
A) when cash is received without regard to when the services are rendered 
B) when the services are rendered without regard to when cash is received 
C) when cash is received at the time services are rendered 
D) if cash is received after the services are rendered

Question 2

Prior to the adjusting process,accrued expenses have

Accepted Answer

A) not yet been incurred,paid,or recorded 
B) been incurred,not paid,but have been recorded 
C) been incurred,not paid,and not recorded 
D) been paid but have not yet been incurred 
A) not yet been incurred,paid,or recorded 
B) been incurred,not paid,but have been recorded 
C) been incurred,not paid,and not recorded 
D) been paid but have not yet been incurred

Question 3

The difference between the balance of a fixed asset account and the balance of its related accumulated depreciation account is termed the book value of the asset.

Accepted Answer

A) True 
 B)False

Question 4

The entry to adjust for the cost of supplies used during the accounting period is

Accepted Answer

A) debit Supplies Expense; credit Supplies 
B) debit Stockholders' Equity; credit Supplies 
C) debit Accounts Payable; credit Supplies 
D) debit Supplies; credit Stockholders' Equity 
A) debit Supplies Expense; credit Supplies 
B) debit Stockholders' Equity; credit Supplies 
C) debit Accounts Payable; credit Supplies 
D) debit Supplies; credit Stockholders' Equity

Question 5

For each of the following, journalize the necessary adjusting entry:
a.	A business pays weekly salaries of $22,000 on Friday for a five-day week ending on that day. Journalize the necessary adjusting entry at the end of the fiscal period, assuming that the fiscal period ends 1 on Tuesday, 2 on Wednesday.
b.	The balance in the prepaid insurance account before adjustment at the end of the year is $18,000. Journalize the adjusting entry required under each of the following alternatives: 1 the amount of insurance expired during the year is $5,300, 2 the amount of unexpired insurance applicable to a future period is $2,700.
c.	On July 1 of the current year, a business pays $54,000 to the city for license taxes for the coming fiscal year. The same business is also required to pay an annual property tax at the end of the year. The estimated amount of the current year's property tax allocated to July is $4,800. 1 Journalize the two adjusting entries required to bring the accounts affected by the taxes up to date as of July 31. 2 What is the amount of tax expense for July?
d.	The estimated depreciation on equipment for the year is $32,000.

Accepted Answer

The answer of For each of the following, journalize the...

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

What effect will this adjusting journal entry have on the accounting records?

Accepted Answer

A) increase income 
B) decrease net income 
C) decrease expenses 
D) increase assets 
A) increase income 
B) decrease net income 
C) decrease expenses 
D) increase assets

Question 8

Adjusting entries affect only expense and asset accounts.

Accepted Answer

A) True 
 B)False

Question 9

The systematic allocation of land's cost to expense is called depreciation.

Accepted Answer

A) True 
 B)False

Question 10

Gracie,Inc.made a prepaid rent payment of $2,800 on January 1.The company's monthly rent is $700.The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is

Accepted Answer

A) $2,100 
B) $700 
C) $2,800 
D) $1,400 
A) $2,100 
B) $700 
C) $2,800 
D) $1,400

Question 11

The balance in the supplies account before adjustment at the end of the year is $6,250.The proper adjusting entry if the amount of supplies on hand at the end of the year is $1,500 would be

Accepted Answer

A) debit Supplies,$1,500; credit Supplies Expense,$1,500 
B) debit Supplies Expense,$4,750; credit Supplies,$4,750 
C) debit Supplies Expense,$1,500; credit Supplies,$1,500 
D) debit Supplies,$4,750; credit Supplies Expense,$4,750 
A) debit Supplies,$1,500; credit Supplies Expense,$1,500 
B) debit Supplies Expense,$4,750; credit Supplies,$4,750 
C) debit Supplies Expense,$1,500; credit Supplies,$1,500 
D) debit Supplies,$4,750; credit Supplies Expense,$4,750

Question 12

The balance in the office supplies account on January 1 was $7,000,supplies purchased during January were $3,000,and the supplies on hand at January 30 were $2,000.The amount to be used for the appropriate adjusting entry is

Accepted Answer

A) $4,300 
B) $12,000 
C) $5,000 
D) $8,000 
A) $4,300 
B) $12,000 
C) $5,000 
D) $8,000

Question 13

The financial statements are prepared from the unadjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 14

What effect will this adjustment have on the accounting records?

Accepted Answer

A) increase net income 
B) increase revenues reported for the period 
C) decrease liabilities 
D) all of these are true 
A) increase net income 
B) increase revenues reported for the period 
C) decrease liabilities 
D) all of these are true

Question 15

Explain the difference between accrual basis accounting and cash basis accounting.

Accepted Answer

Accrual basis accounting reports revenue

Question 16

Accumulated depreciation is reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 17

Data for an adjusting entry described as "accrued wages,$2,020" requires a

Accepted Answer

A) debit to Wages Expense and a credit to Wages Payable 
B) debit to Wages Payable and a credit to Wages Expense 
C) debit to Accounts Receivable and a credit to Wages Expense 
D) debit to Dividends and a credit to Wages Payable 
A) debit to Wages Expense and a credit to Wages Payable 
B) debit to Wages Payable and a credit to Wages Expense 
C) debit to Accounts Receivable and a credit to Wages Expense 
D) debit to Dividends and a credit to Wages Payable

Question 18

As time passes,fixed assets other than land lose their capacity to provide useful services.To account for this decrease in usefulness,the cost of fixed assets is systematically allocated to expense through a process called

Accepted Answer

A) equipment allocation 
B) depreciation 
C) accumulation 
D) matching 
A) equipment allocation 
B) depreciation 
C) accumulation 
D) matching

Question 19

A company receives $360 for a 12-month trade magazine subscription on August 1.The adjusting entry on December 31 is a debit to Unearned Subscription Revenue,$150,and credit to Subscription Revenue,$150.

Accepted Answer

A) True 
 B)False

Question 20

If the adjustment for depreciation for the year is inadvertently omitted,the assets on the balance sheet at the end of the period will be understated.

Accepted Answer

A) True 
 B)False

Using accrual accounting,revenue is recorded and reported only

Prior to the adjusting process,accrued expenses have

The difference between the balance of a fixed asset account and the balance of its related accumulated depreciation account is termed the book value of the asset.

The entry to adjust for the cost of supplies used during the accounting period is

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

What effect will this adjusting journal entry have on the accounting records?

Adjusting entries affect only expense and asset accounts.

The systematic allocation of land's cost to expense is called depreciation.

Gracie,Inc.made a prepaid rent payment of $2,800 on January 1.The company's monthly rent is $700.The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is

The balance in the supplies account before adjustment at the end of the year is $6,250.The proper adjusting entry if the amount of supplies on hand at the end of the year is $1,500 would be

The balance in the office supplies account on January 1 was $7,000,supplies purchased during January were $3,000,and the supplies on hand at January 30 were $2,000.The amount to be used for the appropriate adjusting entry is

The financial statements are prepared from the unadjusted trial balance.

What effect will this adjustment have on the accounting records?

Explain the difference between accrual basis accounting and cash basis accounting.

Accumulated depreciation is reported on the income statement.

Data for an adjusting entry described as "accrued wages,$2,020" requires a

As time passes,fixed assets other than land lose their capacity to provide useful services.To account for this decrease in usefulness,the cost of fixed assets is systematically allocated to expense through a process called

A company receives $360 for a 12-month trade magazine subscription on August 1.The adjusting entry on December 31 is a debit to Unearned Subscription Revenue,$150,and credit to Subscription Revenue,$150.

If the adjustment for depreciation for the year is inadvertently omitted,the assets on the balance sheet at the end of the period will be understated.

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley,internal Control,and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization,stock Transactions,and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 3: The Adjusting Process

Using accrual accounting,revenue is recorded and reported only

Prior to the adjusting process,accrued expenses have

The difference between the balance of a fixed asset account and the balance of its related accumulated depreciation account is termed the book value of the asset.

The entry to adjust for the cost of supplies used during the accounting period is

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

What effect will this adjusting journal entry have on the accounting records?

Adjusting entries affect only expense and asset accounts.

The systematic allocation of land's cost to expense is called depreciation.

Gracie,Inc.made a prepaid rent payment of $2,800 on January 1.The company's monthly rent is $700.The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is

The balance in the supplies account before adjustment at the end of the year is $6,250.The proper adjusting entry if the amount of supplies on hand at the end of the year is $1,500 would be

The balance in the office supplies account on January 1 was $7,000,supplies purchased during January were $3,000,and the supplies on hand at January 30 were $2,000.The amount to be used for the appropriate adjusting entry is

The financial statements are prepared from the unadjusted trial balance.

What effect will this adjustment have on the accounting records?

Explain the difference between accrual basis accounting and cash basis accounting.

Accumulated depreciation is reported on the income statement.

Data for an adjusting entry described as "accrued wages,$2,020" requires a

As time passes,fixed assets other than land lose their capacity to provide useful services.To account for this decrease in usefulness,the cost of fixed assets is systematically allocated to expense through a process called

A company receives $360 for a 12-month trade magazine subscription on August 1.The adjusting entry on December 31 is a debit to Unearned Subscription Revenue,$150,and credit to Subscription Revenue,$150.

If the adjustment for depreciation for the year is inadvertently omitted,the assets on the balance sheet at the end of the period will be understated.

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley,internal Control,and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization,stock Transactions,and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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