Question 1

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

Accepted Answer

A) Adjust supplies inventory to actual. 
B) Record purchase of supplies. 
C) Reduce supplies expense. 
D) Record sale of supplies. 
A) Adjust supplies inventory to actual. 
B) Record purchase of supplies. 
C) Reduce supplies expense. 
D) Record sale of supplies.

Question 2

By matching revenue earned during the accounting period to related incurred expenses,

Accepted Answer

A) net income or loss will always be underestimated 
B) net income or loss will always be overestimated 
C) net income or loss will be properly reported on the income statement 
D) net income or loss will not be determined 
A) net income or loss will always be underestimated 
B) net income or loss will always be overestimated 
C) net income or loss will be properly reported on the income statement 
D) net income or loss will not be determined

Question 3

Adjusting entries affect balance sheet accounts to the exclusion of income statement accounts.

Accepted Answer

A) True 
 B)False

Question 4

The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as

Accepted Answer

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

Question 5

A company pays an employee $3,000 for a five-day workweek,Monday-Friday.The adjusting entry on December 31,which is a Wednesday,is a debit to Wages Expense of $1,800,and a credit to Wages Payable of $1,800.

Accepted Answer

A) True 
 B)False

Question 6

The system of accounting where revenues are recorded when they are earned and expenses are recorded when they are incurred is called the cash basis of accounting.

Accepted Answer

A) True 
 B)False

Question 7

On December 31,a business estimates depreciation on equipment used during the first year of operations to be $2,900.
(a)Journalize the adjusting entry required on December 31.
(b)If the adjusting entry in 
(a)were omitted,which items would be erroneously stated on 
(1)the income statement for the year and 
(2)the balance sheet as of December 31?

Accepted Answer

The answer of On December 31,a business estimates depreciation on...

Question 8

What is the purpose of the adjusted trial balance?

Accepted Answer

A) to verify that all of the adjusting entries have been posted 
B) to verify that the net income (loss) is correctly reported 
C) to verify that no adjusting journal entry has been omitted 
D) to verify that the debits and credits balance 
A) to verify that all of the adjusting entries have been posted 
B) to verify that the net income (loss) is correctly reported 
C) to verify that no adjusting journal entry has been omitted 
D) to verify that the debits and credits balance

Question 9

Match the type of account (a through e) with the business transactions that follow.
-Paid for one year's insurance policy.

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

The unexpired insurance at the end of the fiscal period represents a (n)

Accepted Answer

A) accrued asset 
B) accrued liability 
C) accrued expense 
D) deferred expense 
A) accrued asset 
B) accrued liability 
C) accrued expense 
D) deferred expense

Question 11

Fees payable would appear on the balance sheet as a (n)

Accepted Answer

A) asset 
B) liability 
C) fixed asset 
D) unearned revenue 
A) asset 
B) liability 
C) fixed asset 
D) unearned revenue

Question 12

Adjusting entries affect at least one

Accepted Answer

A) income statement account and one balance sheet account 
B) revenue and the dividends account 
C) asset and one owner's equity account 
D) revenue and one owner's equity account 
A) income statement account and one balance sheet account 
B) revenue and the dividends account 
C) asset and one owner's equity account 
D) revenue and one owner's equity account

Question 13

Data for an adjusting entry described as "accrued wages,$2,020" requires a

Accepted Answer

A) debit to Wages Expense and a credit to Wages Payable 
B) debit to Wages Payable and a credit to Wages Expense 
C) debit to Accounts Receivable and a credit to Wages Expense 
D) debit to Dividends and a credit to Wages Payable 
A) debit to Wages Expense and a credit to Wages Payable 
B) debit to Wages Payable and a credit to Wages Expense 
C) debit to Accounts Receivable and a credit to Wages Expense 
D) debit to Dividends and a credit to Wages Payable

Question 14

On January 1,DogMart Company purchased a two-year liability insurance policy for $22,800 cash.The purchase was recorded to Prepaid Insurance.Prepare the January 31 adjusting entry.

Accepted Answer

$22,800/24

Question 15

Which of the following pairs of accounts could not appear in the same adjusting entry?

Accepted Answer

A) Fees Earned and Unearned Fees 
B) Interest Income and Interest Expense 
C) Rent Expense and Prepaid Rent 
D) Salaries Payable and Salaries Expense 
A) Fees Earned and Unearned Fees 
B) Interest Income and Interest Expense 
C) Rent Expense and Prepaid Rent 
D) Salaries Payable and Salaries Expense

Question 16

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

Accepted Answer

A) Record payment of fees earned. 
B) Record fees earned at the end of the month. 
C) Record fees that have not been earned at the end of the month. 
D) Record payment of fees to be earned. 
A) Record payment of fees earned. 
B) Record fees earned at the end of the month. 
C) Record fees that have not been earned at the end of the month. 
D) Record payment of fees to be earned.

Question 17

The net book value of a fixed asset is determined by the original cost

Accepted Answer

A) less accumulated depreciation 
B) less market value 
C) less accumulated depreciation plus depreciation expense 
D) plus accumulated depreciation 
A) less accumulated depreciation 
B) less market value 
C) less accumulated depreciation plus depreciation expense 
D) plus accumulated depreciation

Question 18

The following adjusting journal entry found in the journal is missing an explanation.Select the best explanation for the entry.

Accepted Answer

A) Record payment of wages. 
B) Record wages paid last month. 
C) Record wages paid in advance. 
D) Record wages expense incurred and to be paid next month. 
A) Record payment of wages. 
B) Record wages paid last month. 
C) Record wages paid in advance. 
D) Record wages expense incurred and to be paid next month.

Question 19

A company depreciates its equipment $500 a year.The adjusting entry on December 31 is a debit to Depreciation Expense of $500 and a credit to Equipment of $500.

Accepted Answer

A) True 
 B)False

Question 20

Prior to the adjusting process,accrued expenses have

Accepted Answer

A) not yet been incurred, paid, or recorded 
B) been incurred, have not been paid, but have been recorded 
C) been incurred but not paid and not recorded 
D) been paid but have not yet been incurred 
A) not yet been incurred, paid, or recorded 
B) been incurred, have not been paid, but have been recorded 
C) been incurred but not paid and not recorded 
D) been paid but have not yet been incurred

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

By matching revenue earned during the accounting period to related incurred expenses,

Adjusting entries affect balance sheet accounts to the exclusion of income statement accounts.

The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as

A company pays an employee $3,000 for a five-day workweek,Monday-Friday.The adjusting entry on December 31,which is a Wednesday,is a debit to Wages Expense of $1,800,and a credit to Wages Payable of $1,800.

The system of accounting where revenues are recorded when they are earned and expenses are recorded when they are incurred is called the cash basis of accounting.

What is the purpose of the adjusted trial balance?

Match the type of account (a through e) with the business transactions that follow. -Paid for one year's insurance policy.

The unexpired insurance at the end of the fiscal period represents a (n)

Fees payable would appear on the balance sheet as a (n)

Adjusting entries affect at least one

Data for an adjusting entry described as "accrued wages,$2,020" requires a

On January 1,DogMart Company purchased a two-year liability insurance policy for $22,800 cash.The purchase was recorded to Prepaid Insurance.Prepare the January 31 adjusting entry.

Which of the following pairs of accounts could not appear in the same adjusting entry?

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

The net book value of a fixed asset is determined by the original cost

The following adjusting journal entry found in the journal is missing an explanation.Select the best explanation for the entry.

A company depreciates its equipment $500 a year.The adjusting entry on December 31 is a debit to Depreciation Expense of $500 and a credit to Equipment of $500.

Prior to the adjusting process,accrued expenses have

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

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Exam 3: The Adjusting Process

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

By matching revenue earned during the accounting period to related incurred expenses,

Adjusting entries affect balance sheet accounts to the exclusion of income statement accounts.

The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as

A company pays an employee $3,000 for a five-day workweek,Monday-Friday.The adjusting entry on December 31,which is a Wednesday,is a debit to Wages Expense of $1,800,and a credit to Wages Payable of $1,800.

The system of accounting where revenues are recorded when they are earned and expenses are recorded when they are incurred is called the cash basis of accounting.

What is the purpose of the adjusted trial balance?

Match the type of account (a through e) with the business transactions that follow. -Paid for one year's insurance policy.

The unexpired insurance at the end of the fiscal period represents a (n)

Fees payable would appear on the balance sheet as a (n)

Adjusting entries affect at least one

Data for an adjusting entry described as "accrued wages,$2,020" requires a

On January 1,DogMart Company purchased a two-year liability insurance policy for $22,800 cash.The purchase was recorded to Prepaid Insurance.Prepare the January 31 adjusting entry.

Which of the following pairs of accounts could not appear in the same adjusting entry?

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

The net book value of a fixed asset is determined by the original cost

The following adjusting journal entry found in the journal is missing an explanation.Select the best explanation for the entry.

A company depreciates its equipment $500 a year.The adjusting entry on December 31 is a debit to Depreciation Expense of $500 and a credit to Equipment of $500.

Prior to the adjusting process,accrued expenses have

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