Question 1

Which of the following accounting elements does the matching principle help to match?

Accepted Answer

A) revenues and liabilities 
B) expenses and assets 
C) expenses and revenues 
D) expenses and liabilities 
A) revenues and liabilities 
B) expenses and assets 
C) expenses and revenues 
D) expenses and liabilities

Question 2

During December 2016,Carroll Service Company performed $1,500 of services,but as of December 31,2016,Carroll has not yet billed the clients.If Carroll fails to make an adjusting entry on December 31,2016,indicate the effect on assets,liabilities,equity,and net income.

Accepted Answer

The answer of During December 2016,Carroll Service Company performed $1,500...

Question 3

Unearned revenue is recorded when ________.

Accepted Answer

A) revenue will be both collected and earned in the future 
B) the business has collected cash,but not yet earned the revenue 
C) revenue has been collected and earned during the same accounting period 
D) the business has earned,but not collected,cash for the revenue 
A) revenue will be both collected and earned in the future 
B) the business has collected cash,but not yet earned the revenue 
C) revenue has been collected and earned during the same accounting period 
D) the business has earned,but not collected,cash for the revenue

Question 4

On October 1,2016,Smith Service Company paid $5,000 in rent for the next five months,beginning with October 2016.On that date,Smith debited Prepaid Rent and credited Cash.If Smith fails to make an adjusting entry on December 31,2016,indicate the effect on assets,liabilities,equity,and net income.

Accepted Answer

The answer of On October 1,2016,Smith Service Company paid $5,000...

Question 5

When does a company account for revenue if it uses cash basis accounting?

Accepted Answer

A) when services are performed,even though cash may be received at a later date 
B) when cash is received after the service is performed 
C) when the services are being performed 
D) when cash is received,either prior to,at the time of,or after the services are performed 
A) when services are performed,even though cash may be received at a later date 
B) when cash is received after the service is performed 
C) when the services are being performed 
D) when cash is received,either prior to,at the time of,or after the services are performed

Question 6

On June 1,Edison Company borrowed $24,000 on a one-year Note Payable with an interest rate of 10% per year.It will repay the principal and interest at the end of the one-year period.The company makes accrual adjustments at the end of each month.The company should record interest expense of $2,400 on June 30.

Accepted Answer

A) True 
 B)False

Question 7

The adjusted trial balance shows ________.

Accepted Answer

A) account balances after adjustments 
B) revenue and expense accounts only 
C) account balances before adjustments 
D) balance sheet accounts only 
A) account balances after adjustments 
B) revenue and expense accounts only 
C) account balances before adjustments 
D) balance sheet accounts only

Question 8

Bryan Consultants had the following balances before preparing adjusting entries in the books on December 31,2017.

Prepare the adjusted trial balance after considering these adjustments:
a.Office Supplies used,$800.Assume the office supplies were initially recorded as an asset.
b.Accrued salaries on December 31,$600.
c.Revenue earned but not recorded,$200.

Accepted Answer

The answer of Bryan Consultants had the following balances before...

Question 9

Anthony Delivery Service has a weekly payroll of $34,000.December 31 falls on Tuesday and Anthony will pay its employees the following Monday (January 6)for the previous full week.Assume that Anthony has a five-day workweek and has an unadjusted balance in Salaries Expense of $945,000.What is the December 31 balance of Salaries Expense after adjusting entries are recorded and posted?

Accepted Answer

A) $945,000 
B) $979,000 
C) $965,400 
D) $958,600 
A) $945,000 
B) $979,000 
C) $965,400 
D) $958,600

Question 10

Under cash basis accounting,revenue is recorded when it is earned,regardless of when cash is received.

Accepted Answer

A) True 
 B)False

Question 11

Wentlent Services Company records deferred expenses as expenses when payment is made in advance and deferred revenues as revenues when the payment is received in advance.At the end of the year,Wentlent Services Company makes the necessary adjustments based on accrual basis accounting.On July 1,it paid rent for an office in the amount of $24,000 for the period July 1 through June 30 of the following year.Provide the year-end adjusting entry for rent prepayment.

Accepted Answer

The answer of Wentlent Services Company records deferred expenses as...

Question 12

On January 1,2015,the Accounts Receivable of Linda Company had a debit balance of $150,000.During January,the company provided services for $600,000 on account.The company collected $230,000 from its customers on account in January.What was the ending balance in the Accounts Receivable account at the end of January?

Accepted Answer

A) $370,000 
B) $750,000 
C) $520,000 
D) $600,000 
A) $370,000 
B) $750,000 
C) $520,000 
D) $600,000

Question 13

On December 15,Duncan Services Company collected revenue of $3,000 in advance from a new client,and agreed to provide services to the client for the period of December 15 through January 15 of the following year.Assume that the company records deferred revenues using the alternative treatment,and journalize the adjusting entry recorded on December 31.

Accepted Answer

@#IMG-DLM&
Explanation:
Servic

Question 14

The liability created when a business collects cash from its customers before completing a service or delivering a product is called ________.

Accepted Answer

A) accrued revenue 
B) accrued expense 
C) deferred revenue 
D) deferred expense 
A) accrued revenue 
B) accrued expense 
C) deferred revenue 
D) deferred expense

Question 15

The accountant for Noble Jewelry Repair Services forgot to make an adjusting entry for Depreciation Expense for the current year.Which of the following is an effect of this error?

Accepted Answer

A) Revenues are understated. 
B) Total assets are understated. 
C) Net income is overstated. 
D) Total liabilities are understated. 
A) Revenues are understated. 
B) Total assets are understated. 
C) Net income is overstated. 
D) Total liabilities are understated.

Question 16

Deborah Consultants had the following accounts and account balances after adjusting entries.Assume all accounts have normal balances.Calculate the amount of service revenue and prepare the adjusted trial balance for Deborah Consultants as of December 31,2017.

Accepted Answer

@#IMG-DLM& Service Revenue = $

Question 17

The time period concept states that ________.

Accepted Answer

A) financial statements can be prepared for specific periods 
B) all expenses should be recorded when they are incurred during the period 
C) companies should record revenue when it has been earned 
D) expenses incurred during a period should be matched against the revenues of the period 
A) financial statements can be prepared for specific periods 
B) all expenses should be recorded when they are incurred during the period 
C) companies should record revenue when it has been earned 
D) expenses incurred during a period should be matched against the revenues of the period

Question 18

A company receives payment from one of its customers on August 5 for services performed on July 21.Which of the following entries would be recorded if the company uses accrual basis accounting?

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 19

A business purchased equipment for $120,000 on January 1,2017.The equipment will be depreciated over the five years of its estimated useful life using the straight-line depreciation method.The business records depreciation once a year on December 31.Which of the following is the adjusting entry required to record depreciation on equipment for the year 2017? (Assume the residual value of the acquired equipment to be zero. )

Accepted Answer

A) Debit $120,000 to Equipment,and credit $120,000 to Cash. 
B) Debit $24,000 to Depreciation Expense-Equipment,and credit $120,000 to Accumulated Depreciation-Equipment. 
C) Debit $24,000 to Depreciation Expense-Equipment,and credit $24,000 to Accumulated Depreciation-Equipment. 
D) Debit $24,000 to Depreciation Expense,and credit $24,000 to Equipment. 
A) Debit $120,000 to Equipment,and credit $120,000 to Cash. 
B) Debit $24,000 to Depreciation Expense-Equipment,and credit $120,000 to Accumulated Depreciation-Equipment. 
C) Debit $24,000 to Depreciation Expense-Equipment,and credit $24,000 to Accumulated Depreciation-Equipment. 
D) Debit $24,000 to Depreciation Expense,and credit $24,000 to Equipment.

Question 20

The entry to record depreciation includes a credit to the ________.

Accepted Answer

A) Depreciation Payable account 
B) Cash account 
C) Accumulated Depreciation account 
D) Depreciation Expense account 
A) Depreciation Payable account 
B) Cash account 
C) Accumulated Depreciation account 
D) Depreciation Expense account

Which of the following accounting elements does the matching principle help to match?

During December 2016,Carroll Service Company performed $1,500 of services,but as of December 31,2016,Carroll has not yet billed the clients.If Carroll fails to make an adjusting entry on December 31,2016,indicate the effect on assets,liabilities,equity,and net income.

Unearned revenue is recorded when ________.

On October 1,2016,Smith Service Company paid $5,000 in rent for the next five months,beginning with October 2016.On that date,Smith debited Prepaid Rent and credited Cash.If Smith fails to make an adjusting entry on December 31,2016,indicate the effect on assets,liabilities,equity,and net income.

When does a company account for revenue if it uses cash basis accounting?

The adjusted trial balance shows ________.

Under cash basis accounting,revenue is recorded when it is earned,regardless of when cash is received.

The liability created when a business collects cash from its customers before completing a service or delivering a product is called ________.

The accountant for Noble Jewelry Repair Services forgot to make an adjusting entry for Depreciation Expense for the current year.Which of the following is an effect of this error?

Deborah Consultants had the following accounts and account balances after adjusting entries.Assume all accounts have normal balances.Calculate the amount of service revenue and prepare the adjusted trial balance for Deborah Consultants as of December 31,2017.

The time period concept states that ________.

A company receives payment from one of its customers on August 5 for services performed on July 21.Which of the following entries would be recorded if the company uses accrual basis accounting?

The entry to record depreciation includes a credit to the ________.

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

Filters

Exam 3: The Adjusting Process

Which of the following accounting elements does the matching principle help to match?

During December 2016,Carroll Service Company performed $1,500 of services,but as of December 31,2016,Carroll has not yet billed the clients.If Carroll fails to make an adjusting entry on December 31,2016,indicate the effect on assets,liabilities,equity,and net income.

Unearned revenue is recorded when ________.

On October 1,2016,Smith Service Company paid $5,000 in rent for the next five months,beginning with October 2016.On that date,Smith debited Prepaid Rent and credited Cash.If Smith fails to make an adjusting entry on December 31,2016,indicate the effect on assets,liabilities,equity,and net income.

When does a company account for revenue if it uses cash basis accounting?

The adjusted trial balance shows ________.

Under cash basis accounting,revenue is recorded when it is earned,regardless of when cash is received.

The liability created when a business collects cash from its customers before completing a service or delivering a product is called ________.

The accountant for Noble Jewelry Repair Services forgot to make an adjusting entry for Depreciation Expense for the current year.Which of the following is an effect of this error?

Deborah Consultants had the following accounts and account balances after adjusting entries.Assume all accounts have normal balances.Calculate the amount of service revenue and prepare the adjusted trial balance for Deborah Consultants as of December 31,2017.

The time period concept states that ________.

A company receives payment from one of its customers on August 5 for services performed on July 21.Which of the following entries would be recorded if the company uses accrual basis accounting?

The entry to record depreciation includes a credit to the ________.

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

Filters