Exam 4: Adjusting the Accounts and Preparing Financial Statements

The correct set of column headings used in a worksheet to assist in the preparation of accounting reports in a manual accounting system are:

Which statement relating to the accumulated depreciation account is correct?

If an adjustment for accrued rent is omitted from the financial reports the effect is:

What type of account is Prepaid Rent?

Adjustments where income is earned or expenses incurred before the cash is received or paid are called:

To assist in evaluating an entity's liquidity, assets and liabilities are classified as:

Indicate the order that the following current assets should be listed in the balance sheet. I Accounts receivable II Cash at Bank III Prepaid expenses IV Inventory

The correct order of steps in the manual recording process is: I Post transactions to the ledger Ii Record transactions in the journal Iii Prepare financial statements Iv Record adjusting entries

When preparing the financial statements using a manual accounting system, the worksheet will show profit:

Which of the following is not an advantage of preparing an adjusted trial balance?

Which of the following statements relating to balance day adjustments is correct?

Which of the following is an intangible asset?

What type of account is Unearned Income?

Newsome Company purchased equipment for $105 000 on 1 January 2018 with an estimated life of 8 years and a residual value of $5 000. The straight-line method of depreciation is used. What is the carrying amount of the equipment in the balance sheet of Newsome Company at 30 June 2019?

The balance sheet may list current assets in their order of liquidity. Liquidity refers to:

The supplies inventory account of Forever Flowers shows a balance of $1800 on 30 June 2018, the end of the financial year. Supplies of $1550 were used during the month of June 2018. Which of the following is correct after recording the adjustment on 30 June 2018?

Which of the following statements relating to the cash basis of accounting is incorrect?

The capital account of Benjie Maintenance, a sole trader, was credited with $15 000. Which of the following would not give rise to such a CR?

Accountants prefer to calculate profitability using the________ basis rather than the____________ basis:

Which of the following items is the current liability?