The following Office Supplies account information is available for Nabors, Inc. \[\begin{array} { | l | r| } \hline \text { Beginning balance } & \$ 1,100 \\ \hline \text { Office Supplies expensed } & 7,000 \\ \hline \text { Ending balance } & 2,000 \\ \hline \end{array}\] From the above information, calculate the amount of office supplies purchased.

A) $7,900 B) $7,000 C) $1,100 D) $2,000 A) $7,900 B) $7,000 C) $1,100 D) $2,000

Exam 3: The Adjusting Process

At the end of the current year, the accountant for Computer Graphics, Inc. forgot to make an adjusting entry to accrue Wages Payable for the company's employees for the last week in December. The wages will be paid to the employees in January. Which of the following is an effect of this error?

(Multiple Choice)

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Question 41

The accountant for Barnes Auto Repair, Inc. failed to make an adjusting entry to record $5,000 of unpaid salaries for the last two weeks of the year. Which of the following is an effect of this omission?

(Multiple Choice)

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Question 42

Under the revenue recognition principle, a good or service is considered transferred when ________.

(Multiple Choice)

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Question 43

On July 1, Lamba, Inc. paid rent of $15,000 for an equipment storage building from July 1 until December 31. Prepare the adjusting journal entry on July 31. (Ignore explanation). Assume the deferred expense is initially recorded as an asset.

(Essay)

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Question 44

In the case of a deferred expense, the adjusting entry required at the end of a period will consist of a credit to the Prepaid Expense account. Assume the deferred expense was initially recorded as an asset.

(True/False)

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Question 45

The accountant for Eagle Financial Services, Inc. failed to make an adjusting entry to record $3,000 of telephone expenses for the last two months of the year. Which of the following statements is true?

(Multiple Choice)

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Question 46

On January 1, 2018, the Prepaid Insurance account of Dogwood, Inc. had a beginning balance of $2,700. Three months of insurance premiums remain in this beginning balance. On February 21, 2018, the company paid an annual insurance premium in the amount of $4,300 for the period beginning March 1. On February 28, 2018, the balance in Prepaid Insurance is $1,800.

(True/False)

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Question 47

Which of the following accounting terms assumes that a business's activities can be divided into small segments and that financial statements can be prepared for specific periods, such as a month, quarter, or year?

(Multiple Choice)

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Question 48

Prepaid Rent is an expense account that appears on the income statement.

(True/False)

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Question 49

Accrual basis accounting requires the business to review the unadjusted trial balance and determine whether any additional revenues and expenses need to be recorded.

(True/False)

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Question 50

Mason Painting Services has a weekly payroll of $28,000. December 31 falls on Wednesday and Mason will pay its employees the following Monday (January 5) for the previous full week. Assume that Mason has a five-day workweek and has an unadjusted balance in Salaries Expense of $800,000 at December 31. What amount should be debited to Salaries Expense on December 31?

(Multiple Choice)

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Question 51

Adkins Company is hired on December 15, 2018 to perform services, beginning on December 16, 2018. Under this agreement, Adkins will earn $4,400 monthly and receive payment on January 15, 2019. What amount of service revenue should be recorded for the year ending December 31, 2018?

(Multiple Choice)

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Question 52

To match expenses against revenues means to add expenses paid in cash during one month to revenues earned during that same month.

(True/False)

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Question 53

Armstrong Services has a weekly payroll of $50,000. December 31 falls on Thursday and Armstrong will pay its employees the following Monday (January 4) for the previous full week. Assume that the company has a five-day workweek and has an unadjusted balance in Salaries Expense of $845,000 at December 31. Prepare the January 4 journal entry. Reversing entries are not made.

(Essay)

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Question 54

Revenue is earned when ________.

(Multiple Choice)

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Question 55

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

(True/False)

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Question 56

The following Office Supplies account information is available for Nabors, Inc. Beginning balance \ 1,100 Office Supplies expensed 7,000 Ending balance 2,000 From the above information, calculate the amount of office supplies purchased.

(Multiple Choice)

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Question 57

The worksheet is a useful step in preparing adjusting entries and the unadjusted trial balance.

(True/False)

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Question 58

Big Rig Delivery Service has the following plant assets: Communications Equipment: Cost, $3,840 with useful life of 8 years; Delivery Equipment: Cost, $17,568 with useful life of 12 years; and Computer: Cost, $13,440 with useful life of 4 years. Assume the residual value of all the assets is zero and the straight-line method is used. Big Rig's monthly depreciation journal entry will include a ________.

(Multiple Choice)

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Question 59

The accountant for Watson Electrical Repair, Inc. failed to make an adjusting entry to record $5,000 of unpaid salaries for the last two weeks of the year. Which of the following statements is true?

(Multiple Choice)

4.8/5

(44)

Question 60

Showing 41 - 60 of 225

Exam 3: The Adjusting Process

At the end of the current year, the accountant for Computer Graphics, Inc. forgot to make an adjusting entry to accrue Wages Payable for the company's employees for the last week in December. The wages will be paid to the employees in January. Which of the following is an effect of this error?

The accountant for Barnes Auto Repair, Inc. failed to make an adjusting entry to record $5,000 of unpaid salaries for the last two weeks of the year. Which of the following is an effect of this omission?

Under the revenue recognition principle, a good or service is considered transferred when ________.

On July 1, Lamba, Inc. paid rent of $15,000 for an equipment storage building from July 1 until December 31. Prepare the adjusting journal entry on July 31. (Ignore explanation). Assume the deferred expense is initially recorded as an asset.

In the case of a deferred expense, the adjusting entry required at the end of a period will consist of a credit to the Prepaid Expense account. Assume the deferred expense was initially recorded as an asset.

The accountant for Eagle Financial Services, Inc. failed to make an adjusting entry to record $3,000 of telephone expenses for the last two months of the year. Which of the following statements is true?

Which of the following accounting terms assumes that a business's activities can be divided into small segments and that financial statements can be prepared for specific periods, such as a month, quarter, or year?

Prepaid Rent is an expense account that appears on the income statement.

Accrual basis accounting requires the business to review the unadjusted trial balance and determine whether any additional revenues and expenses need to be recorded.

Adkins Company is hired on December 15, 2018 to perform services, beginning on December 16, 2018. Under this agreement, Adkins will earn $4,400 monthly and receive payment on January 15, 2019. What amount of service revenue should be recorded for the year ending December 31, 2018?

To match expenses against revenues means to add expenses paid in cash during one month to revenues earned during that same month.

Revenue is earned when ________.

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

The following Office Supplies account information is available for Nabors, Inc. Beginning balance \ 1,100 Office Supplies expensed 7,000 Ending balance 2,000 From the above information, calculate the amount of office supplies purchased.

The worksheet is a useful step in preparing adjusting entries and the unadjusted trial balance.

The accountant for Watson Electrical Repair, Inc. failed to make an adjusting entry to record $5,000 of unpaid salaries for the last two weeks of the year. Which of the following statements is true?

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

Cost Volume Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

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Understanding Accounting Information Systems and their Components

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