Exam 3: The Adjusting Process

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account,which of the following describes the effect of the credit portion of the entry?

(Multiple Choice)

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Question 141

At year-end,the balance in the prepaid insurance account,prior to any adjustments,is $6,000.The amount of the journal entry required to record insurance expense will be $4,000 if the amount of unexpired insurance applicable to future periods is $2,000.

(True/False)

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Question 142

When preparing an income statement vertical analysis,each revenue and expense is expressed as a percent of net income.

(True/False)

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Question 143

Supplies are recorded as assets when purchased.Therefore,the credit to supplies in the adjusting entry is for the amount of supplies

(Multiple Choice)

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Question 144

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

(True/False)

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Question 145

Which of the accounts below would most likely appear on an adjusted trial balance but probably would not appear on the unadjusted trial balance?

(Multiple Choice)

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Question 146

Adjusting entries affect only expense and asset accounts.

(True/False)

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Question 147

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

(Multiple Choice)

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Question 148

Depreciation Expense and Accumulated Depreciation are classified,respectively,as

(Multiple Choice)

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Question 149

A company pays $6,500 for two season tickets on September 1.If $2,500 is earned by December 31,the adjusting entry made at that time is debit Cash,$2,500 and credit Ticket Revenue,$2,500.

(True/False)

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Question 150

Vertical analysis is useful for analyzing financial statement changes over time.

(True/False)

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Question 151

An adjusting entry would adjust an expense account so the expense is reported when incurred.

(True/False)

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Question 152

The financial statements are prepared from the unadjusted trial balance.

(True/False)

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Question 153

The matching concept supports matching expenses with the related revenues.

(True/False)

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Question 154

Deferred revenue is revenue that is

(Multiple Choice)

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Question 155

The adjustment for accrued fees was debited to Accounts Payable instead of Accounts Receivable.This error will be detected when the Adjusted Trial Balance is prepared.

(True/False)

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Question 156

Accumulated Depreciation accounts are liability accounts.

(True/False)

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Question 157

Adjusting entries always include

(Multiple Choice)

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Question 158

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

(True/False)

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Question 159

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

(Multiple Choice)

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Question 160

Showing 141 - 160 of 169

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account,which of the following describes the effect of the credit portion of the entry?

At year-end,the balance in the prepaid insurance account,prior to any adjustments,is $6,000.The amount of the journal entry required to record insurance expense will be $4,000 if the amount of unexpired insurance applicable to future periods is $2,000.

When preparing an income statement vertical analysis,each revenue and expense is expressed as a percent of net income.

Supplies are recorded as assets when purchased.Therefore,the credit to supplies in the adjusting entry is for the amount of supplies

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

Which of the accounts below would most likely appear on an adjusted trial balance but probably would not appear on the unadjusted trial balance?

Adjusting entries affect only expense and asset accounts.

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

Depreciation Expense and Accumulated Depreciation are classified,respectively,as

A company pays $6,500 for two season tickets on September 1.If $2,500 is earned by December 31,the adjusting entry made at that time is debit Cash,$2,500 and credit Ticket Revenue,$2,500.

Vertical analysis is useful for analyzing financial statement changes over time.

An adjusting entry would adjust an expense account so the expense is reported when incurred.

The financial statements are prepared from the unadjusted trial balance.

The matching concept supports matching expenses with the related revenues.

Deferred revenue is revenue that is

The adjustment for accrued fees was debited to Accounts Payable instead of Accounts Receivable.This error will be detected when the Adjusted Trial Balance is prepared.

Accumulated Depreciation accounts are liability accounts.

Adjusting entries always include

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

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

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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