Question 1

The financial statements are prepared from the unadjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

An adjusting entry would adjust revenue so it is reported when earned and not when cash is received.

Accepted Answer

A) True 
 B)False

Question 4

On January 1,Power House Co.prepaid the annual rent of $10,140.Prepare the journal entry to record this transaction.

Accepted Answer

The answer of On January 1,Power House Co.prepaid the annual...

Question 5

For each of the following,journalize the necessary adjusting entry:

Accepted Answer

The answer of For each of the following,journalize the necessary...

Question 6

If there is a balance in the prepaid rent account after adjusting entries are made,it represents a (n)

Accepted Answer

A) deferral 
B) accrual 
C) revenue 
D) liability 
A) deferral 
B) accrual 
C) revenue 
D) liability

Question 7

How will the following adjusting journal entry affect the accounting equation?

Accepted Answer

A) increase assets, increase revenues 
B) increase liabilities, increase revenues 
C) decrease liabilities, increase revenues 
D) decrease liabilities, decrease revenues 
A) increase assets, increase revenues 
B) increase liabilities, increase revenues 
C) decrease liabilities, increase revenues 
D) decrease liabilities, decrease revenues

Question 8

Adjusting journal entries are dated on the last day of the period.

Accepted Answer

A) True 
 B)False

Question 9

Match the type of account (a through e) with the business transactions that follow.
-Electric bill to be paid next month.

Accepted Answer

A) Prepaid expense 
B) Accrued expense 
C) Unearned revenue 
D) Accrued revenue 
E) None of these choices 
A) Prepaid expense 
B) Accrued expense 
C) Unearned revenue 
D) Accrued revenue 
E) None of these choices

Question 10

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet.
-Services provided to customers on the last day of the month were not billed.

Accepted Answer

A) Assets and owner's equity overstated 
B) Assets and owner's equity understated 
C) Assets overstated and owner's equity understated 
D) Assets understated and owner's equity overstated 
E) Liabilities and owner's equity overstated
F)Liabilities and owner's equity understated
G)Liabilities overstated and owner's equity understated
H)Liabilities understated and owner's equity overstated 
A) Assets and owner's equity overstated 
B) Assets and owner's equity understated 
C) Assets overstated and owner's equity understated 
D) Assets understated and owner's equity overstated 
E) Liabilities and owner's equity overstated
F)Liabilities and owner's equity understated
G)Liabilities overstated and owner's equity understated
H)Liabilities understated and owner's equity overstated

Question 11

The revenue recognition principle requires that the reporting of revenue be included in the period when cash for the service is received.

Accepted Answer

A) True 
 B)False

Question 12

Two income statements for Danielle's Design Services are shown below.​
(a) Prepare a vertical analysis of Danielle's Design Services income statements.
(b) What types of trends are indicated: favorable or unfavorable?
(c) What other information would enhance the analysis?

Accepted Answer

(a)*Differences due to rounding @#IMG-DLM& ​
(b)Th

Question 13

Prepaid expenses are eventually expected to become

Accepted Answer

A) expenses when their future economic value expires or is used up 
B) revenues when services are performed 
C) expenses in the period when they are paid 
D) revenues when the liability is no longer owed 
A) expenses when their future economic value expires or is used up 
B) revenues when services are performed 
C) expenses in the period when they are paid 
D) revenues when the liability is no longer owed

Question 14

Which of the following is an example of an accrued expense?

Accepted Answer

A) salary owed but not yet paid 
B) fees received but not yet earned 
C) supplies on hand 
D) a two-year premium paid on a fire insurance policy 
A) salary owed but not yet paid 
B) fees received but not yet earned 
C) supplies on hand 
D) a two-year premium paid on a fire insurance policy

Question 15

Match the type of account (a through e) with the business transactions that follow.
-A contract to provide tutoring services beginning next month was signed.

Accepted Answer

A) Prepaid expense 
B) Accrued expense 
C) Unearned revenue 
D) Accrued revenue 
E) None of these choices 
A) Prepaid expense 
B) Accrued expense 
C) Unearned revenue 
D) Accrued revenue 
E) None of these choices

Question 16

At the end of the current year,fees of $3,700 have been earned but have not been billed to clients.Journalize the adjusting entry to record the accrued fees.

Accepted Answer

The answer of At the end of the current year,fees...

Question 17

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 18

If the adjustment for accrued salaries at the end of the period is inadvertently omitted,both liabilities and stockholders' equity will be understated for the period.

Accepted Answer

A) True 
 B)False

Question 19

Indicate with a Yes or No whether or not each of the following accounts would,under normal circumstances,require an adjusting entry.1.Cash2.Prepaid Expenses3.Depreciation Expense4.Accounts Payable5.Accumulated Depreciation6.Equipment

Accepted Answer

1.No2.Yes3

Question 20

Prepaid advertising,representing payment for the next quarter,would be reported on the balance sheet as

Accepted Answer

A) an asset 
B) a liability 
C) a contra asset 
D) owner's equity 
A) an asset 
B) a liability 
C) a contra asset 
D) owner's equity

The financial statements are prepared from the unadjusted trial balance.

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

An adjusting entry would adjust revenue so it is reported when earned and not when cash is received.

On January 1,Power House Co.prepaid the annual rent of $10,140.Prepare the journal entry to record this transaction.

For each of the following,journalize the necessary adjusting entry:

If there is a balance in the prepaid rent account after adjusting entries are made,it represents a (n)

How will the following adjusting journal entry affect the accounting equation?

Adjusting journal entries are dated on the last day of the period.

Match the type of account (a through e) with the business transactions that follow. -Electric bill to be paid next month.

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet. -Services provided to customers on the last day of the month were not billed.

The revenue recognition principle requires that the reporting of revenue be included in the period when cash for the service is received.

Two income statements for Danielle's Design Services are shown below. (a) Prepare a vertical analysis of Danielle's Design Services income statements. (b) What types of trends are indicated: favorable or unfavorable? (c) What other information would enhance the analysis?

Prepaid expenses are eventually expected to become

Which of the following is an example of an accrued expense?

Match the type of account (a through e) with the business transactions that follow. -A contract to provide tutoring services beginning next month was signed.

At the end of the current year,fees of $3,700 have been earned but have not been billed to clients.Journalize the adjusting entry to record the accrued fees.

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

If the adjustment for accrued salaries at the end of the period is inadvertently omitted,both liabilities and stockholders' equity will be understated for the period.

Indicate with a Yes or No whether or not each of the following accounts would,under normal circumstances,require an adjusting entry.1.Cash2.Prepaid Expenses3.Depreciation Expense4.Accounts Payable5.Accumulated Depreciation6.Equipment

Prepaid advertising,representing payment for the next quarter,would be reported on the balance sheet as

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

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

Exam 3: The Adjusting Process

The financial statements are prepared from the unadjusted trial balance.

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

An adjusting entry would adjust revenue so it is reported when earned and not when cash is received.

On January 1,Power House Co.prepaid the annual rent of $10,140.Prepare the journal entry to record this transaction.

For each of the following,journalize the necessary adjusting entry:

If there is a balance in the prepaid rent account after adjusting entries are made,it represents a (n)

How will the following adjusting journal entry affect the accounting equation?

Adjusting journal entries are dated on the last day of the period.

Match the type of account (a through e) with the business transactions that follow. -Electric bill to be paid next month.

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet. -Services provided to customers on the last day of the month were not billed.

The revenue recognition principle requires that the reporting of revenue be included in the period when cash for the service is received.

Two income statements for Danielle's Design Services are shown below.​ (a) Prepare a vertical analysis of Danielle's Design Services income statements. (b) What types of trends are indicated: favorable or unfavorable? (c) What other information would enhance the analysis?

Prepaid expenses are eventually expected to become

Which of the following is an example of an accrued expense?

Match the type of account (a through e) with the business transactions that follow. -A contract to provide tutoring services beginning next month was signed.

At the end of the current year,fees of $3,700 have been earned but have not been billed to clients.Journalize the adjusting entry to record the accrued fees.

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

If the adjustment for accrued salaries at the end of the period is inadvertently omitted,both liabilities and stockholders' equity will be understated for the period.

Indicate with a Yes or No whether or not each of the following accounts would,under normal circumstances,require an adjusting entry.1.Cash2.Prepaid Expenses3.Depreciation Expense4.Accounts Payable5.Accumulated Depreciation6.Equipment

Prepaid advertising,representing payment for the next quarter,would be reported on the balance sheet as

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

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

Two income statements for Danielle's Design Services are shown below. (a) Prepare a vertical analysis of Danielle's Design Services income statements. (b) What types of trends are indicated: favorable or unfavorable? (c) What other information would enhance the analysis?