Question 1

Given the following account balances for Garry's Tree Service,prepare a trial balance.

Accepted Answer

The answer of Given the following account balances for Garry's...

Question 2

Which of the following is not true regarding depreciation?

Accepted Answer

A) Depreciation allocates the cost of a fixed asset over its estimated life. 
B) Depreciation expense reflects the decrease in market value each year. 
C) Depreciation is an allocation not a valuation method. 
D) Depreciation expense does not measure changes in market value. 
A) Depreciation allocates the cost of a fixed asset over its estimated life. 
B) Depreciation expense reflects the decrease in market value each year. 
C) Depreciation is an allocation not a valuation method. 
D) Depreciation expense does not measure changes in market value.

Question 3

Unearned revenue is a liability.

Accepted Answer

A) True 
 B)False

Question 4

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 5

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

Accepted Answer

A) expense 
B) asset 
C) contra asset 
D) liability 
A) expense 
B) asset 
C) contra asset 
D) liability

Question 6

One of the accounting concepts upon which deferrals and accruals are based is

Accepted Answer

A) matching 
B) cost 
C) price-level adjustment 
D) conservatism 
A) matching 
B) cost 
C) price-level adjustment 
D) conservatism

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

Accrued expenses are ordinarily reported on the balance sheet as

Accepted Answer

A) assets 
B) liabilities 
C) fixed assets 
D) prepaid expenses 
A) assets 
B) liabilities 
C) fixed assets 
D) prepaid expenses

Question 9

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

Accepted Answer

A) Yes,increased by 5% 
B) Yes,increased by 111% 
C) No,decreased by 5%. 
D) None are correct. 
A) Yes,increased by 5% 
B) Yes,increased by 111% 
C) No,decreased by 5%. 
D) None are correct.

Question 10

The Supplies account had a beginning balance of $1,750.Supplies purchased during the period totaled $3,500.At the end of the period before adjustment,$350 of supplies were on hand.Prepare the adjusting entry for supplies.

Accepted Answer

$1,750 + $

Question 11

Which of the following is not a characteristic of 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 in the income statement in the period in which they are earned 
C) Supports the matching concept 
D) All are correct. 
A) Revenues and expenses are reported in the period in which cash is received or paid 
B) Revenues are reported in the income statement in the period in which they are earned 
C) Supports the matching concept 
D) All are correct.

Question 12

A company purchases a one-year insurance policy on June 1 for $2,760.The adjusting entry on December 31 is

Accepted Answer

A) debit Insurance Expense,$1,380 and credit Prepaid Insurance,$1,380. 
B) debit Insurance Expense,$1,150 and credit Prepaid Insurance,$1,150. 
C) debit Insurance Expense,$1,610,and credit Prepaid Insurance,$1,610. 
D) debit Prepaid Insurance,$1,380,and credit Cash,$1,380. 
A) debit Insurance Expense,$1,380 and credit Prepaid Insurance,$1,380. 
B) debit Insurance Expense,$1,150 and credit Prepaid Insurance,$1,150. 
C) debit Insurance Expense,$1,610,and credit Prepaid Insurance,$1,610. 
D) debit Prepaid Insurance,$1,380,and credit Cash,$1,380.

Question 13

Which of the following is considered to be unearned revenue?

Accepted Answer

A) Concert tickets sold last month for yesterday's performance. 
B) Concert tickets sold yesterday on credit for yesterday's performance. 
C) Concert tickets that were not sold for the current performance. 
D) Concert tickets sold for next month's performance. 
A) Concert tickets sold last month for yesterday's performance. 
B) Concert tickets sold yesterday on credit for yesterday's performance. 
C) Concert tickets that were not sold for the current performance. 
D) Concert tickets sold for next month's performance.

Question 14

The type of account and normal balance of Unearned Rent is

Accepted Answer

A) revenue,credit 
B) expense,debit 
C) liability,credit 
D) liability,debit 
A) revenue,credit 
B) expense,debit 
C) liability,credit 
D) liability,debit

Question 15

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

The answer of On January 1, DogMart Company purchased a...

Question 16

The adjusting entry to record the depreciation of equipment for the fiscal period is

Accepted Answer

A) debit Depreciation Expense;credit Equipment 
B) debit Depreciation Expense;credit Accumulated Depreciation 
C) debit Accumulated Depreciation;credit Depreciation Expense 
D) debit Equipment;credit Depreciation Expense 
A) debit Depreciation Expense;credit Equipment 
B) debit Depreciation Expense;credit Accumulated Depreciation 
C) debit Accumulated Depreciation;credit Depreciation Expense 
D) debit Equipment;credit Depreciation Expense

Question 17

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

Accepted Answer

A) Service Revenue and Unearned Revenue 
B) Interest Income and Interest Expense 
C) Rent Expense and Prepaid Rent 
D) Salaries Payable and Salaries Expense 
A) Service Revenue and Unearned Revenue 
B) Interest Income and Interest Expense 
C) Rent Expense and Prepaid Rent 
D) Salaries Payable and Salaries Expense

Question 18

For the year ending December 31,2010,Nathan Clinical Supplies Co.mistakenly omitted adjusting entries for (1)$8,900 of unearned revenue that was earned, (2)earned revenue that was not billed of $10,200,and (3)accrued wages of $7,000.Indicate the combined effect of the errors on (a)revenues, (b)expenses,and (c)net income for 2010.

Accepted Answer

(a)Revenues were understated b

Question 19

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 20

An example of deferred revenue is Unearned Rent.

Accepted Answer

A) True 
 B)False

Given the following account balances for Garry's Tree Service,prepare a trial balance.

Which of the following is not true regarding depreciation?

Unearned revenue is a liability.

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

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

One of the accounting concepts upon which deferrals and accruals are based is

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

Accrued expenses are ordinarily reported on the balance sheet as

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

The Supplies account had a beginning balance of $1,750.Supplies purchased during the period totaled $3,500.At the end of the period before adjustment,$350 of supplies were on hand.Prepare the adjusting entry for supplies.

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

A company purchases a one-year insurance policy on June 1 for $2,760.The adjusting entry on December 31 is

Which of the following is considered to be unearned revenue?

The type of account and normal balance of Unearned Rent is

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.

The adjusting entry to record the depreciation of equipment for the fiscal period is

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

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

An example of deferred revenue is Unearned Rent.

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

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

Given the following account balances for Garry's Tree Service,prepare a trial balance.

Which of the following is not true regarding depreciation?

Unearned revenue is a liability.

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

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

One of the accounting concepts upon which deferrals and accruals are based is

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

Accrued expenses are ordinarily reported on the balance sheet as

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

The Supplies account had a beginning balance of $1,750.Supplies purchased during the period totaled $3,500.At the end of the period before adjustment,$350 of supplies were on hand.Prepare the adjusting entry for supplies.

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

A company purchases a one-year insurance policy on June 1 for $2,760.The adjusting entry on December 31 is

Which of the following is considered to be unearned revenue?

The type of account and normal balance of Unearned Rent is

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.

The adjusting entry to record the depreciation of equipment for the fiscal period is

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

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

An example of deferred revenue is Unearned Rent.

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

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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