Question 1

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 2

Revenues and expenses should be recorded in the same period to which they relate.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is considered to be unearned revenue?

Accepted Answer

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

Question 4

What is the purpose of an adjusted trial balance? What types of errors does it detect? What types of errors does it not detect?

Accepted Answer

The purpose of an adjusted trial balance

Question 5

Accrued revenues would appear on the balance sheet as

Accepted Answer

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

Question 6

At the end of the fiscal year, the usual adjusting entry to Prepaid Insurance to record expired insurance was omitted. Which of the following statements is true?

Accepted Answer

A)  Total assets at the end of the year will be understated. 
B)  Stockholders' equity at the end of the year will be understated. 
C)  Net income for the year will be overstated. 
D)  Insurance Expense will be overstated. 
A)  Total assets at the end of the year will be understated. 
B)  Stockholders' equity at the end of the year will be understated. 
C)  Net income for the year will be overstated. 
D)  Insurance Expense will be overstated.

Question 7

Unearned revenue is a liability.

Accepted Answer

A) True 
 B)False

Question 8

Vertical analysis compares each item in a financial statement with a total amount from the same statement.

Accepted Answer

A) True 
 B)False

Question 9

Depreciation Expense and Accumulated Depreciation are classified, respectively, as

Accepted Answer

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

Question 10

Salaries of $6,400 are paid for a five-day week on Friday. Prepare the adjusting journal entry that is required if the month ends on Thursday.

Accepted Answer

The answer of Salaries of $6,400 are paid for a...

Question 11

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 12

The unexpired insurance at the end of the fiscal period represents

Accepted Answer

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

Question 13

The financial statements are prepared from the unadjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Revenue recognition concept 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 16

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

Accepted Answer

(a)
 @#IMG-DLM& (b) A favorable trend on

Question 17

Fees receivable 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 18

Which of the following is considered to be an accrued expense?

Accepted Answer

A)  A computer technician has installed the latest software updates and was paid on the same day. 
B)  A computer technician has been paid in advance to install software updates as they become available. 
C)  A computer technician has just signed an agreement with you regarding pricing for future work. 
D)  A computer technician has installed the latest software updates, but you have not received their invoice for payment. 
A)  A computer technician has installed the latest software updates and was paid on the same day. 
B)  A computer technician has been paid in advance to install software updates as they become available. 
C)  A computer technician has just signed an agreement with you regarding pricing for future work. 
D)  A computer technician has installed the latest software updates, but you have not received their invoice for payment.

Question 19

Explain the difference between
(a) Accrued revenues and unearned revenues.
(b) Accrued expenses and prepaid expenses.
(c) Give an example of each.

Accepted Answer

The answer of Explain the difference between
(a) Accrued revenues and...

Question 20

The net income reported on the income statement is $85,000. However, adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $800. Net income, as corrected, is

Accepted Answer

A)  $84,200 
B)  $85,000 
C)  $82,800 
D)  $82,000 
A)  $84,200 
B)  $85,000 
C)  $82,800 
D)  $82,000

Accrued expenses are ordinarily reported on the balance sheet as

Revenues and expenses should be recorded in the same period to which they relate.

Which of the following is considered to be unearned revenue?

What is the purpose of an adjusted trial balance? What types of errors does it detect? What types of errors does it not detect?

Accrued revenues would appear on the balance sheet as

At the end of the fiscal year, the usual adjusting entry to Prepaid Insurance to record expired insurance was omitted. Which of the following statements is true?

Unearned revenue is a liability.

Vertical analysis compares each item in a financial statement with a total amount from the same statement.

Depreciation Expense and Accumulated Depreciation are classified, respectively, as

Salaries of $6,400 are paid for a five-day week on Friday. Prepare the adjusting journal entry that is required if the month ends on Thursday.

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

The unexpired insurance at the end of the fiscal period represents

The financial statements are prepared from the unadjusted trial balance.

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

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

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

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

Which of the following is considered to be an accrued expense?

Explain the difference between (a) Accrued revenues and unearned revenues. (b) Accrued expenses and prepaid expenses. (c) Give an example of each.

The net income reported on the income statement is $85,000. However, adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $800. Net income, as corrected, is

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

Accrued expenses are ordinarily reported on the balance sheet as

Revenues and expenses should be recorded in the same period to which they relate.

Which of the following is considered to be unearned revenue?

What is the purpose of an adjusted trial balance? What types of errors does it detect? What types of errors does it not detect?

Accrued revenues would appear on the balance sheet as

At the end of the fiscal year, the usual adjusting entry to Prepaid Insurance to record expired insurance was omitted. Which of the following statements is true?

Unearned revenue is a liability.

Vertical analysis compares each item in a financial statement with a total amount from the same statement.

Depreciation Expense and Accumulated Depreciation are classified, respectively, as

Salaries of $6,400 are paid for a five-day week on Friday. Prepare the adjusting journal entry that is required if the month ends on Thursday.

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

The unexpired insurance at the end of the fiscal period represents

The financial statements are prepared from the unadjusted trial balance.

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

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

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

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

Which of the following is considered to be an accrued expense?

Explain the difference between (a) Accrued revenues and unearned revenues. (b) Accrued expenses and prepaid expenses. (c) Give an example of each.

The net income reported on the income statement is $85,000. However, adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $800. Net income, as corrected, is

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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