Question 1

Complete the missing items in the Summary of Adjustments chart:
 11ea83a5_c2bd_4dbc_908c_3b738474d684

Accepted Answer

None

Question 2

For the year ending June 30,Island Clinical Services mistakenly omitted adjusting entries for 1 $1,500 of supplies that were used,2 unearned revenue of $4,200 that was earned,and 3 insurance of $5,000 that expired.What is the combined effect of these errors on a revenues,b expenses,and c net income for the year ending June 30?

Accepted Answer

a. Revenues were understated b

Question 3

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 4

The following adjusting journal entry found in the journal is missing an explanation.Select the best explanation for the entry.

Accepted Answer

A) Record payment of wages. 
B) Record wages paid last month. 
C) Record wages paid in advance. 
D) Record wages expense incurred and to be paid next month. 
A) Record payment of wages. 
B) Record wages paid last month. 
C) Record wages paid in advance. 
D) Record wages expense incurred and to be paid next month.

Question 5

Prior to the adjusting process,accrued revenue has

Accepted Answer

A) been earned and cash received 
B) been earned and not recorded as revenue 
C) not been earned but recorded as revenue 
D) not been recorded as revenue but cash has been received 
A) been earned and cash received 
B) been earned and not recorded as revenue 
C) not been earned but recorded as revenue 
D) not been recorded as revenue but cash has been received

Question 6

Unearned revenue is a liability.

Accepted Answer

A) True 
 B)False

Question 7

The adjusting entry to adjust supplies was omitted at the end of the year.This would affect the income statement by having

Accepted Answer

A) expenses understated and therefore net income overstated 
B) revenues understated and therefore net income understated 
C) expenses understated and therefore net income understated 
D) expenses overstated and therefore net income understated 
A) expenses understated and therefore net income overstated 
B) revenues understated and therefore net income understated 
C) expenses understated and therefore net income understated 
D) expenses overstated and therefore net income understated

Question 8

At the end of the fiscal year,the following adjusting entries were omitted:
a. No adjusting entry was made to transfer the $1,750 of prepaid insurance from the asset account to the expense account.
b. No adjusting entry was made to record accrued fees of $525 for services provided to customers.
Assuming that financial statements are prepared before the errors are discovered,indicate the effect of each error,considered individually,by inserting the dollar amount in the appropriate spaces.Insert "0" if the error does not affect the item.

Accepted Answer

None

Question 9

A company pays an employee $3,000 for a five day work week,Monday-Friday.The adjusting entry on December 31,which is a Wednesday,is a debit to Wages Expense,$1,800,and a credit to Wages Payable,$1,800.

Accepted Answer

A) True 
 B)False

Question 10

The difference between deferred revenue and accrued revenue is that accrued revenue has been recorded and needs adjusting and deferred revenue has never been recorded.

Accepted Answer

A) True 
 B)False

Question 11

The adjusting entry to record the depreciation of a building for the fiscal period is

Accepted Answer

A) debit Depreciation Expense; credit Building. 
B) debit Depreciation Expense; credit Accumulated Depreciation. 
C) debit Accumulated Depreciation; credit Depreciation Expense. 
D) debit Building; credit Depreciation Expense. 
A) debit Depreciation Expense; credit Building. 
B) debit Depreciation Expense; credit Accumulated Depreciation. 
C) debit Accumulated Depreciation; credit Depreciation Expense. 
D) debit Building; credit Depreciation Expense.

Question 12

Which of the following is an example of a prepaid expense?

Accepted Answer

A) Supplies 
B) Accounts Receivable 
C) Unearned Subscriptions 
D) Unearned Fees 
A) Supplies 
B) Accounts Receivable 
C) Unearned Subscriptions 
D) Unearned Fees

Question 13

On December 31,a business estimates depreciation on equipment used during the first year of operations to be $2,900.a Journalize the adjusting entry required on December 31.b If the adjusting entry in a were omitted,which items would be erroneously stated on 1 the income statement for the year and 2 the balance sheet as of December 31?

Accepted Answer

a
b
1. Depreciation expense would be und

Question 14

On March 1,a business paid $3,600 for a twelve-month liability insurance policy.On April 1,the business entered into a two-year rental contract for equipment at a total cost of $18,000.Determine the following amounts:
a. insurance expense for the month of March
b. prepaid insurance as of March 31
c. equipment rent expense for the month of April
d. prepaid equipment rental as of April 30

Accepted Answer

a.	$300 $3,600/12 = $300
b.	$3

Question 15

Which one of the accounts below would likely be included in an accrual adjusting entry?

Accepted Answer

A) Insurance Expense 
B) Prepaid Rent 
C) Interest Expense 
D) Unearned Rent 
A) Insurance Expense 
B) Prepaid Rent 
C) Interest Expense 
D) Unearned Rent

Question 16

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 17

The revenue recognition concept

Accepted Answer

A) is not in conflict with the cash method of accounting 
B) determines when revenue is credited to a revenue account 
C) states that revenue is not recorded until the cash is received 
D) controls all revenue reporting for the cash basis of accounting 
A) is not in conflict with the cash method of accounting 
B) determines when revenue is credited to a revenue account 
C) states that revenue is not recorded until the cash is received 
D) controls all revenue reporting for the cash basis of accounting

Question 18

The matching concept

Accepted Answer

A) addresses the relationship between the journal and the balance sheet 
B) determines whether the normal balance of an account is a debit or credit 
C) requires that the dollar amount of debits equal the dollar amount of credits on a trial balance 
D) states that the revenues and related expenses should be reported in the same period 
A) addresses the relationship between the journal and the balance sheet 
B) determines whether the normal balance of an account is a debit or credit 
C) requires that the dollar amount of debits equal the dollar amount of credits on a trial balance 
D) states that the revenues and related expenses should be reported in the same period

Question 19

Indicate whether the following error would cause the adjusted trial balance totals to be unequal.If the error would cause the adjusted trial balance totals to be unequal,indicate whether the debit or credit total is higher and by how much.
The adjustment for accrued fees of $1,170 was journalized as a debit to Accounts Receivable for $1,170 and a credit to Fees Earned for $1,107.

Accepted Answer

The total will be un

Question 20

Accumulated Depreciation and Depreciation Expense are classified,respectively,as

Accepted Answer

A) expense,contra asset 
B) asset,contra liability 
C) revenue,asset 
D) contra asset,expense 
A) expense,contra asset 
B) asset,contra liability 
C) revenue,asset 
D) contra asset,expense

Complete the missing items in the Summary of Adjustments chart: 11ea83a5_c2bd_4dbc_908c_3b738474d684

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

The following adjusting journal entry found in the journal is missing an explanation.Select the best explanation for the entry.

Prior to the adjusting process,accrued revenue has

Unearned revenue is a liability.

The adjusting entry to adjust supplies was omitted at the end of the year.This would affect the income statement by having

A company pays an employee $3,000 for a five day work week,Monday-Friday.The adjusting entry on December 31,which is a Wednesday,is a debit to Wages Expense,$1,800,and a credit to Wages Payable,$1,800.

The difference between deferred revenue and accrued revenue is that accrued revenue has been recorded and needs adjusting and deferred revenue has never been recorded.

The adjusting entry to record the depreciation of a building for the fiscal period is

Which of the following is an example of a prepaid expense?

Which one of the accounts below would likely be included in an accrual adjusting entry?

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

The revenue recognition concept

The matching concept

Accumulated Depreciation and Depreciation Expense are classified,respectively,as

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

Complete the missing items in the Summary of Adjustments chart: 11ea83a5_c2bd_4dbc_908c_3b738474d684

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

The following adjusting journal entry found in the journal is missing an explanation.Select the best explanation for the entry.

Prior to the adjusting process,accrued revenue has

Unearned revenue is a liability.

The adjusting entry to adjust supplies was omitted at the end of the year.This would affect the income statement by having

A company pays an employee $3,000 for a five day work week,Monday-Friday.The adjusting entry on December 31,which is a Wednesday,is a debit to Wages Expense,$1,800,and a credit to Wages Payable,$1,800.

The difference between deferred revenue and accrued revenue is that accrued revenue has been recorded and needs adjusting and deferred revenue has never been recorded.

The adjusting entry to record the depreciation of a building for the fiscal period is

Which of the following is an example of a prepaid expense?

Which one of the accounts below would likely be included in an accrual adjusting entry?

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

The revenue recognition concept

The matching concept

Accumulated Depreciation and Depreciation Expense are classified,respectively,as

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

Filters