Question 1

The expected value of a depreciable asset at the end of its useful life is called ________.

Accepted Answer

A) book value 
B) residual value 
C) depreciation expense 
D) accrued expense 
A) book value 
B) residual value 
C) depreciation expense 
D) accrued expense

Question 2

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 3

The accountant of Residential Architectural Services failed to make an adjusting entry to record $7,000 of depreciation expense.Which of the following statements is TRUE?

Accepted Answer

A) The total liabilities will be overstated. 
B) The equity will be understated. 
C) The total assets will be overstated. 
D) The total assets will be understated. 
A) The total liabilities will be overstated. 
B) The equity will be understated. 
C) The total assets will be overstated. 
D) The total assets will be understated.

Question 4

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

Accepted Answer

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

Question 5

In applying the revenue recognition principle,which of the following statements regarding multiple performance obligations is incorrect?

Accepted Answer

A) If the transaction has multiple performance obligations,the transaction price is allocated among the different performance obligations. 
B) The business can recognize revenue when (or as)it satisfies each performance obligation by transferring a good or service to a customer. 
C) A contract might have multiple performance obligations. 
D) Revenue is recognized after all performance obligations are satisfied. 
A) If the transaction has multiple performance obligations,the transaction price is allocated among the different performance obligations. 
B) The business can recognize revenue when (or as)it satisfies each performance obligation by transferring a good or service to a customer. 
C) A contract might have multiple performance obligations. 
D) Revenue is recognized after all performance obligations are satisfied.

Question 6

Juniper Tree Service has a weekly payroll of $50,000.December 31,2018 falls on Thursday and Juniper will pay its employees the following Monday (January 4,2019)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 December 31,2018 adjusting entry.

Accepted Answer

The answer of Juniper Tree Service has a weekly payroll...

Question 7

Stallings Company purchased manufacturing equipment for $8,400.It has an estimated useful life of seven years and no residual value.The company should record depreciation expense of $50 per month.(Assume that the company uses the straight-line method. )

Accepted Answer

A) True 
 B)False

Question 8

An adjusting entry that debits Accounts Receivable is an example of a(n)________.

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

Adjusting entries either credit a revenue account or debit an expense account.

Accepted Answer

A) True 
 B)False

Question 11

A contra account's normal balance (debit or credit)is the opposite of the normal balance of the related account.

Accepted Answer

A) True 
 B)False

Question 12

A contract can only have one performance obligation.

Accepted Answer

A) True 
 B)False

Question 13

Unearned Revenue is a(n)________ account and carries a normal ________ balance.

Accepted Answer

A) liability;credit 
B) asset;credit 
C) revenue;debit 
D) asset;debit 
A) liability;credit 
B) asset;credit 
C) revenue;debit 
D) asset;debit

Question 14

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 15

The accounts that are used in a worksheet are taken from and listed in the same order as the ________.

Accepted Answer

A) balance sheet 
B) audit report 
C) journal 
D) chart of accounts 
A) balance sheet 
B) audit report 
C) journal 
D) chart of accounts

Question 16

Which of the following accounts would be used under the accrual basis of accounting,but not under cash basis accounting?

Accepted Answer

A) Cash 
B) Unearned Revenue 
C) Service Revenue 
D) Salaries Expense 
A) Cash 
B) Unearned Revenue 
C) Service Revenue 
D) Salaries Expense

Question 17

On October 1,2019 Ranger Service Company paid $5,000 in rent for the next five months,beginning with October 2019.On that date,Ranger debited Prepaid Rent and credited Cash.If Ranger fails to make an adjusting entry on December 31,2019,indicate the effect on assets,liabilities,equity,and net income.

Accepted Answer

The answer of On October 1,2019 Ranger Service Company paid...

Question 18

The following Office Supplies account information is available for Nabors Company.   From the above information,calculate the amount of office supplies purchased.

Accepted Answer

A) $7,000 
B) $8,000 
C) $2,000 
D) $1,000 
A) $7,000 
B) $8,000 
C) $2,000 
D) $1,000

Question 19

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.

Accepted Answer

A) True 
 B)False

Question 20

Deferred revenues are assets because the business has collected the cash before earning the revenue.

Accepted Answer

A) True 
 B)False

The expected value of a depreciable asset at the end of its useful life is called ________.

The time period concept states that ________.

The accountant of Residential Architectural Services failed to make an adjusting entry to record $7,000 of depreciation expense.Which of the following statements is TRUE?

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

In applying the revenue recognition principle,which of the following statements regarding multiple performance obligations is incorrect?

Stallings Company purchased manufacturing equipment for $8,400.It has an estimated useful life of seven years and no residual value.The company should record depreciation expense of $50 per month.(Assume that the company uses the straight-line method. )

An adjusting entry that debits Accounts Receivable is an example of a(n)________.

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

Adjusting entries either credit a revenue account or debit an expense account.

A contra account's normal balance (debit or credit)is the opposite of the normal balance of the related account.

A contract can only have one performance obligation.

Unearned Revenue is a(n) account and carries a normal balance.

The adjusted trial balance shows ________.

The accounts that are used in a worksheet are taken from and listed in the same order as the ________.

Which of the following accounts would be used under the accrual basis of accounting,but not under cash basis accounting?

On October 1,2019 Ranger Service Company paid $5,000 in rent for the next five months,beginning with October 2019.On that date,Ranger debited Prepaid Rent and credited Cash.If Ranger fails to make an adjusting entry on December 31,2019,indicate the effect on assets,liabilities,equity,and net income.

The following Office Supplies account information is available for Nabors Company. From the above information,calculate the amount of office supplies purchased.

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.

Deferred revenues are assets because the business has collected the cash before earning the revenue.

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

Filters

Exam 3: The Adjusting Process

The expected value of a depreciable asset at the end of its useful life is called ________.

The time period concept states that ________.

The accountant of Residential Architectural Services failed to make an adjusting entry to record $7,000 of depreciation expense.Which of the following statements is TRUE?

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

In applying the revenue recognition principle,which of the following statements regarding multiple performance obligations is incorrect?

Stallings Company purchased manufacturing equipment for $8,400.It has an estimated useful life of seven years and no residual value.The company should record depreciation expense of $50 per month.(Assume that the company uses the straight-line method. )

An adjusting entry that debits Accounts Receivable is an example of a(n)________.

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

Adjusting entries either credit a revenue account or debit an expense account.

A contra account's normal balance (debit or credit)is the opposite of the normal balance of the related account.

A contract can only have one performance obligation.

Unearned Revenue is a(n)________ account and carries a normal ________ balance.

The adjusted trial balance shows ________.

The accounts that are used in a worksheet are taken from and listed in the same order as the ________.

Which of the following accounts would be used under the accrual basis of accounting,but not under cash basis accounting?

The following Office Supplies account information is available for Nabors Company. From the above information,calculate the amount of office supplies purchased.

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.

Deferred revenues are assets because the business has collected the cash before earning the revenue.

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

Filters

Unearned Revenue is a(n) account and carries a normal balance.