Question 1

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 2

The prepaid insurance account had a beginning balance of $6,600 and was debited for $2,300 of premiums paid during the year. Journalize the adjusting entry required at the end of the year assuming the amount of unexpired insurance related to future periods is $4,100.

Accepted Answer

@#IMG-DLM&_TB2013_00

Question 3

Prepare adjusting entries for the following transactions:

Accepted Answer

The answer of Prepare adjusting entries for the following transactions:
...

Question 4

A company pays $36,000 for twelve month's rent on October 1. The adjusting entry on December 31 is debit Rent Expense, $9,000 and credit Prepaid Rent, $9,000.

Accepted Answer

A) True 
 B)False

Question 5

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

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

Prior to the adjusting process, accrued expenses have

Accepted Answer

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

Question 8

The supplies account has a balance of $2,100 at the beginning of the year and was debited during the year for $2,300, representing the total of supplies purchased during the year. If $400 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is

Accepted Answer

A)  $400 
B)  $200 
C)  $4,800 
D)  $4,000 
A)  $400 
B)  $200 
C)  $4,800 
D)  $4,000

Question 9

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

Accepted Answer

A)  asset 
B)  liability 
C)  capital account 
D)  contra liability 
A)  asset 
B)  liability 
C)  capital account 
D)  contra liability

Question 10

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 11

Adjusting entries affect at least one

Accepted Answer

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

Question 12

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 13

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 14

Which of the accounting steps in the accounting process below would be completed last?

Accepted Answer

A)  preparing the adjusted trial balance 
B)  posting 
C)  preparing the financial statements 
D)  journalizing 
A)  preparing the adjusted trial balance 
B)  posting 
C)  preparing the financial statements 
D)  journalizing

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

A contra asset account for Land will normally appear in the balance sheet.

Accepted Answer

A) True 
 B)False

Question 17

The updating of accounts is called the adjusting process.

Accepted Answer

A) True 
 B)False

Question 18

What effect will the following adjusting journal entry have on the accounting records?

Accepted Answer

A)  Increase net income 
B)  Increase revenues 
C)  Decrease expenses 
D)  Decrease net book value 
A)  Increase net income 
B)  Increase revenues 
C)  Decrease expenses 
D)  Decrease net book value

Question 19

Protonix Corp has a payroll of $8,000 for a five-day workweek. Its employees are paid each Friday for the five-day workweek. The adjusting entry on December 31, 2015 assuming the year ends on Thursday would be:

Accepted Answer

$8,000/5 =

Question 20

Indicate with a Yes or No whether or not each of the following accounts would, under normal circumstances, require an adjusting entry.
1. Cash
2. Prepaid Expenses
3. Depreciation Expense
4. Accounts Payable
5. Accumulated Depreciation
6. Equipment

Accepted Answer

1. No
2. Y

Exam 3: The Adjusting Process

When is the adjusted trial balance prepared?

The prepaid insurance account had a beginning balance of $6,600 and was debited for $2,300 of premiums paid during the year. Journalize the adjusting entry required at the end of the year assuming the amount of unexpired insurance related to future periods is $4,100.

Prepare adjusting entries for the following transactions:

A company pays $36,000 for twelve month's rent on October 1. The adjusting entry on December 31 is debit Rent Expense, $9,000 and credit Prepaid Rent, $9,000.

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

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.

Prior to the adjusting process, accrued expenses have

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

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

Adjusting entries affect at least one

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

Adjusting entries are

Which of the accounting steps in the accounting process below would be completed last?

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.

A contra asset account for Land will normally appear in the balance sheet.

The updating of accounts is called the adjusting process.

What effect will the following adjusting journal entry have on the accounting records?

Protonix Corp has a payroll of $8,000 for a five-day workweek. Its employees are paid each Friday for the five-day workweek. The adjusting entry on December 31, 2015 assuming the year ends on Thursday would be:

Indicate with a Yes or No whether or not each of the following accounts would, under normal circumstances, require an adjusting entry. 1. Cash 2. Prepaid Expenses 3. Depreciation Expense 4. Accounts Payable 5. Accumulated Depreciation 6. Equipment

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

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

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Filters