Question 1

Adjusting entries are

Accepted Answer

A) the same as correcting entries 
B) needed to bring accounts up to date and match revenue and expense 
C) optional under generally accepted accounting principles 
D) rarely needed in large companies 
A) the same as correcting entries 
B) needed to bring accounts up to date and match revenue and expense 
C) optional under generally accepted accounting principles 
D) rarely needed in large companies

Question 2

The entry to adjust the accounts for salaries accrued at the end of the accounting period is

Accepted Answer

A) debit Salaries Payable; credit Cash 
B) debit Cash; credit Salaries Payable 
C) debit Salaries Payable; credit Salaries Expense 
D) debit Salaries Expense; credit Salaries Payable 
A) debit Salaries Payable; credit Cash 
B) debit Cash; credit Salaries Payable 
C) debit Salaries Payable; credit Salaries Expense 
D) debit Salaries Expense; credit Salaries Payable

Question 3

When is the adjusted trial balance prepared?

Accepted Answer

A) before adjusting journal entries are posted 
B) after adjusting journal entries are posted 
C) after the adjusting journal entries are journalized 
D) before the adjusting journal entries are journalized 
A) before adjusting journal entries are posted 
B) after adjusting journal entries are posted 
C) after the adjusting journal entries are journalized 
D) before the adjusting journal entries are journalized

Question 4

If the adjustment for depreciation for the year is inadvertently omitted,the assets on the balance sheet at the end of the period will be understated.

Accepted Answer

A) True 
 B)False

Question 5

The revenue recognition principle states that revenue should be recorded in the same period as the cash is received.

Accepted Answer

A) True 
 B)False

Question 6

Journalize the six entries to adjust the accounts at December 31.
(Hint: One of the accounts was affected by two different adjusting entries).​​   ​​​​​​​​​​​​​​​​​​​​​​​

Accepted Answer

The answer of Journalize the six entries to adjust the...

Question 7

Two income statements for Toby Sam Enterprises are shown below.​Prepare a vertical analysis of Toby Sam Enterprises' income statements.Has operating income increased or decreased as a percentage of revenue?

Accepted Answer

A) increased by 5% 
B) increased by 111% 
C) decreased by 5% 
D) decreased by 111% 
A) increased by 5% 
B) increased by 111% 
C) decreased by 5% 
D) decreased by 111%

Question 8

A business pays biweekly salaries of $20,000 every other Friday for a 10-day period ending on that day.The last payday of December is Friday,December 27.Assume the next pay period begins on Monday,December 30 and the proper adjusting entry is journalized at the end of the fiscal period 
(December 31).Journalize the entry for the payment of the payroll on Friday,January 10.

Accepted Answer

Accrued Salaries for December

Question 9

The entry to adjust for the cost of supplies used during the accounting period is

Accepted Answer

A) debit Supplies Expense; credit Supplies 
B) debit Owner's Equity; credit Supplies 
C) debit Accounts Payable; credit Supplies 
D) debit Supplies; credit Owner's Equity 
A) debit Supplies Expense; credit Supplies 
B) debit Owner's Equity; credit Supplies 
C) debit Accounts Payable; credit Supplies 
D) debit Supplies; credit Owner's Equity

Question 10

Which of the following accounts would likely be included in an accrual adjusting entry?

Accepted Answer

A) Insurance Expense 
B) Prepaid Rent 
C) Interest Expense 
D) Unearned Rent 
A) Insurance Expense 
B) Prepaid Rent 
C) Interest Expense 
D) Unearned Rent

Question 11

Prepaid rent,representing rent for the next six months' occupancy,would be reported on the tenant's balance sheet as a (n)

Accepted Answer

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

Question 12

The systematic allocation of land's cost to expense is called depreciation.

Accepted Answer

A) True 
 B)False

Question 13

Which account would normally not require an adjusting entry?

Accepted Answer

A) Wages Expense 
B) Accounts Receivable 
C) Accumulated Depreciation 
D) Cash 
A) Wages Expense 
B) Accounts Receivable 
C) Accumulated Depreciation 
D) Cash

Question 14

Which of the following is not a characteristic of the accrual basis of accounting?

Accepted Answer

A) Revenues and expenses are reported in the period in which cash is received or paid. 
B) Revenues are reported on the income statement in the period in which they are earned. 
C) The accrual basis of accounting supports the matching concept. 
D) Expenses are reported in the same period as the revenues to which they relate. 
A) Revenues and expenses are reported in the period in which cash is received or paid. 
B) Revenues are reported on the income statement in the period in which they are earned. 
C) The accrual basis of accounting supports the matching concept. 
D) Expenses are reported in the same period as the revenues to which they relate.

Question 15

The difference between the balance of a fixed asset account and the balance of its related accumulated depreciation account is termed the book value of the asset.

Accepted Answer

A) True 
 B)False

Question 16

If the adjustment to recognize expired insurance at the end of the period is inadvertently omitted,the assets at the end of the period will be understated.

Accepted Answer

A) True 
 B)False

Question 17

The cash basis of accounting records revenues and expenses when the cash is exchanged,while the accrual basis of accounting

Accepted Answer

A) records revenues when they are earned and expenses when they are paid 
B) records revenues and expenses when they are incurred 
C) records revenues when cash is received and expenses when they are incurred 
D) records revenues and expenses when the company needs to apply for a loan 
A) records revenues when they are earned and expenses when they are paid 
B) records revenues and expenses when they are incurred 
C) records revenues when cash is received and expenses when they are incurred 
D) records revenues and expenses when the company needs to apply for a loan

Question 18

Depreciation on equipment for the year is $6,300.
(a)Record the journal entry if the company prepares adjustments once a year.
(b)Record the journal entry if the company prepares adjustments on a monthly basis.

Accepted Answer

The answer of Depreciation on equipment for the year is...

Question 19

Match the type of account (a through e) with the business transactions that follow.
-Annual depreciation on equipment,recorded on a monthly basis.

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 20

Two income statements for Midnight Enterprises are shown below.​
(a)Prepare a vertical analysis of Midnight Enterprises' income statements.
(b)Does the vertical analysis indicate a favorable or unfavorable trend?

Accepted Answer

(a)​ @#IMG-DLM& (b)The vertical analysis is indica

Adjusting entries are

The entry to adjust the accounts for salaries accrued at the end of the accounting period is

When is the adjusted trial balance prepared?

If the adjustment for depreciation for the year is inadvertently omitted,the assets on the balance sheet at the end of the period will be understated.

The revenue recognition principle states that revenue should be recorded in the same period as the cash is received.

Journalize the six entries to adjust the accounts at December 31. (Hint: One of the accounts was affected by two different adjusting entries).

Two income statements for Toby Sam Enterprises are shown below.Prepare a vertical analysis of Toby Sam Enterprises' income statements.Has operating income increased or decreased as a percentage of revenue?

The entry to adjust for the cost of supplies used during the accounting period is

Which of the following accounts would likely be included in an accrual adjusting entry?

Prepaid rent,representing rent for the next six months' occupancy,would be reported on the tenant's balance sheet as a (n)

The systematic allocation of land's cost to expense is called depreciation.

Which account would normally not require an adjusting entry?

Which of the following is not a characteristic of the accrual basis of accounting?

The difference between the balance of a fixed asset account and the balance of its related accumulated depreciation account is termed the book value of the asset.

If the adjustment to recognize expired insurance at the end of the period is inadvertently omitted,the assets at the end of the period will be understated.

The cash basis of accounting records revenues and expenses when the cash is exchanged,while the accrual basis of accounting

Depreciation on equipment for the year is $6,300. (a)Record the journal entry if the company prepares adjustments once a year. (b)Record the journal entry if the company prepares adjustments on a monthly basis.

Match the type of account (a through e) with the business transactions that follow. -Annual depreciation on equipment,recorded on a monthly basis.

Two income statements for Midnight Enterprises are shown below. (a)Prepare a vertical analysis of Midnight Enterprises' income statements. (b)Does the vertical analysis indicate a favorable or unfavorable trend?

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

Adjusting entries are

The entry to adjust the accounts for salaries accrued at the end of the accounting period is

When is the adjusted trial balance prepared?

If the adjustment for depreciation for the year is inadvertently omitted,the assets on the balance sheet at the end of the period will be understated.

The revenue recognition principle states that revenue should be recorded in the same period as the cash is received.

Journalize the six entries to adjust the accounts at December 31. (Hint: One of the accounts was affected by two different adjusting entries).​​ ​​​​​​​​​​​​​​​​​​​​​​​

Two income statements for Toby Sam Enterprises are shown below.​Prepare a vertical analysis of Toby Sam Enterprises' income statements.Has operating income increased or decreased as a percentage of revenue?

The entry to adjust for the cost of supplies used during the accounting period is

Which of the following accounts would likely be included in an accrual adjusting entry?

Prepaid rent,representing rent for the next six months' occupancy,would be reported on the tenant's balance sheet as a (n)

The systematic allocation of land's cost to expense is called depreciation.

Which account would normally not require an adjusting entry?

Which of the following is not a characteristic of the accrual basis of accounting?

The difference between the balance of a fixed asset account and the balance of its related accumulated depreciation account is termed the book value of the asset.

If the adjustment to recognize expired insurance at the end of the period is inadvertently omitted,the assets at the end of the period will be understated.

The cash basis of accounting records revenues and expenses when the cash is exchanged,while the accrual basis of accounting

Depreciation on equipment for the year is $6,300. (a)Record the journal entry if the company prepares adjustments once a year. (b)Record the journal entry if the company prepares adjustments on a monthly basis.

Match the type of account (a through e) with the business transactions that follow. -Annual depreciation on equipment,recorded on a monthly basis.

Two income statements for Midnight Enterprises are shown below.​ (a)Prepare a vertical analysis of Midnight Enterprises' income statements. (b)Does the vertical analysis indicate a favorable or unfavorable trend?

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

Journalize the six entries to adjust the accounts at December 31. (Hint: One of the accounts was affected by two different adjusting entries).

Two income statements for Toby Sam Enterprises are shown below.Prepare a vertical analysis of Toby Sam Enterprises' income statements.Has operating income increased or decreased as a percentage of revenue?

Two income statements for Midnight Enterprises are shown below. (a)Prepare a vertical analysis of Midnight Enterprises' income statements. (b)Does the vertical analysis indicate a favorable or unfavorable trend?