Question 1

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

Accepted Answer

A) accrued revenue 
B) prepaid expense 
C) unearned revenue 
D) accrued expense 
A) accrued revenue 
B) prepaid expense 
C) unearned revenue 
D) accrued expense

Question 2

Henry Tax Planning Service bought production equipment for $9,600 on January 1,2015.It has an estimated useful life of 5 years and zero residual value.Henry uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of every month.As of June 30,2015,the book value of this equipment shown on its balance sheet will be ________.

Accepted Answer

A) $8,640 
B) $9,600 
C) $10,560 
D) $9,760 
A) $8,640 
B) $9,600 
C) $10,560 
D) $9,760

Question 3

The partial worksheet of Ruth Furniture is as follows:
   Accumulated
   Depreciation Expense-
   Calculate and enter the amounts for the Adjusted Trial Balance columns.

Accepted Answer

@#IMG-DLM& Accumulat

Question 4

An internal document that helps summarize data for the preparation of financial statements is called a ________.

Accepted Answer

A) journal 
B) ledger 
C) worksheet 
D) chart of accounts 
A) journal 
B) ledger 
C) worksheet 
D) chart of accounts

Question 5

An adjusting entry is completed ________.

Accepted Answer

A) at the beginning of the accounting period 
B) at the end of the accounting period 
C) when the balance sheet is prepared 
D) when accounts need to be balanced in the ledger 
A) at the beginning of the accounting period 
B) at the end of the accounting period 
C) when the balance sheet is prepared 
D) when accounts need to be balanced in the ledger

Question 6

Under accrual basis accounting,an expense is recorded only when cash is paid.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following would result in an increase in income under the accrual method of accounting,but would not result in an increase in income under cash basis accounting?

Accepted Answer

A) purchase of supplies for cash 
B) performance of services on account 
C) use of supplies purchased earlier 
D) receipt of cash for services that were performed earlier on account 
A) purchase of supplies for cash 
B) performance of services on account 
C) use of supplies purchased earlier 
D) receipt of cash for services that were performed earlier on account

Question 8

If a company fails to make an adjusting entry for accrued revenues,the net income will be overstated.

Accepted Answer

A) True 
 B)False

Question 9

Prepaid insurance is an asset account and hence it appears on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 10

Luminous Electrical Inc.performed services costing $8,000 on January 24 and invoiced the customer.It received the $8,000 on January 31.Provide the journal entry on January 24 when services were rendered.(Ignore explanation.)

Accepted Answer

The answer of Luminous Electrical Inc.performed services costing $8,000 on...

Question 11

On January 1,2014,Prepaid Insurance of Maywood Inc.had a beginning balance of $1,200.On February 1,2014,the company paid an annual insurance premium in the amount of $4,800 for the period beginning April 1.On February 28,2014,the balance in Prepaid Insurance is $2,000.The prepaid expense was initially recorded as an asset.

Accepted Answer

A) True 
 B)False

Question 12

Accrued revenue is the income that has been received but not earned.

Accepted Answer

A) True 
 B)False

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

The partial worksheet of Ruth Furniture is as follows: Accumulated Depreciation Expense- Calculate and enter the amounts for the Adjusted Trial Balance columns.

An internal document that helps summarize data for the preparation of financial statements is called a ________.

An adjusting entry is completed ________.

Under accrual basis accounting,an expense is recorded only when cash is paid.

Which of the following would result in an increase in income under the accrual method of accounting,but would not result in an increase in income under cash basis accounting?

If a company fails to make an adjusting entry for accrued revenues,the net income will be overstated.

Prepaid insurance is an asset account and hence it appears on the balance sheet.

Luminous Electrical Inc.performed services costing $8,000 on January 24 and invoiced the customer.It received the $8,000 on January 31.Provide the journal entry on January 24 when services were rendered.(Ignore explanation.)

Accrued revenue is the income that has been received but not earned.

Accounting and the Business Environment

Recording Business Transactions

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Investments

Current Liabilities and Payroll

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Accounting Information Systems

Filters

Exam 3: The Adjusting Process

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

The partial worksheet of Ruth Furniture is as follows: Accumulated Depreciation Expense- Calculate and enter the amounts for the Adjusted Trial Balance columns.

An internal document that helps summarize data for the preparation of financial statements is called a ________.

An adjusting entry is completed ________.

Under accrual basis accounting,an expense is recorded only when cash is paid.

Which of the following would result in an increase in income under the accrual method of accounting,but would not result in an increase in income under cash basis accounting?

If a company fails to make an adjusting entry for accrued revenues,the net income will be overstated.

Prepaid insurance is an asset account and hence it appears on the balance sheet.

Luminous Electrical Inc.performed services costing $8,000 on January 24 and invoiced the customer.It received the $8,000 on January 31.Provide the journal entry on January 24 when services were rendered.(Ignore explanation.)

Accrued revenue is the income that has been received but not earned.

Accounting and the Business Environment

Recording Business Transactions

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Investments

Current Liabilities and Payroll

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Accounting Information Systems

Filters