Question 1

The cost of a depreciable asset less accumulated depreciation reflects the book value of the asset.

Accepted Answer

A) True 
 B)False

Question 2

Expenses incurred but not yet paid or recorded are called

Accepted Answer

A)  prepaid expenses. 
B)  accrued expenses. 
C)  interim expenses. 
D)  unearned expenses. 
A)  prepaid expenses. 
B)  accrued expenses. 
C)  interim expenses. 
D)  unearned expenses.

Question 3

Depreciation expense for a period is the

Accepted Answer

A)  original cost of an asset - accumulated depreciation. 
B)  book value of the asset ÷ useful life. 
C)  portion of an asset's cost that expired during the period. 
D)  market value of the asset ÷ useful life. 
A)  original cost of an asset - accumulated depreciation. 
B)  book value of the asset ÷ useful life. 
C)  portion of an asset's cost that expired during the period. 
D)  market value of the asset ÷ useful life.

Question 4

The difference between the cost of a depreciable asset and its related accumulated depreciation is referred to as the

Accepted Answer

A)  market value of the asset. 
B)  blue book value of the asset. 
C)  book value of the asset. 
D)  depreciated difference of the asset. 
A)  market value of the asset. 
B)  blue book value of the asset. 
C)  book value of the asset. 
D)  depreciated difference of the asset.

Question 5

A small company may be able to justify using a cash-basis of accounting if they have

Accepted Answer

A)  sales under $1,000,000. 
B)  no accountants on staff. 
C)  few receivables and payables. 
D)  all sales and purchases on account. 
A)  sales under $1,000,000. 
B)  no accountants on staff. 
C)  few receivables and payables. 
D)  all sales and purchases on account.

Question 6

An adjusting entry recording accrued salaries for a period indicates that Salaries Expense has been ________________ but has not yet been ________________ or recorded.

Accepted Answer

The answer of An adjusting entry recording accrued salaries for...

Question 7

If accounting information has relevance, it is useful in making predictions about

Accepted Answer

A)  future tax audits. 
B)  new accounting principles. 
C)  foreign currency exchange rates. 
D)  the future events of a company. 
A)  future tax audits. 
B)  new accounting principles. 
C)  foreign currency exchange rates. 
D)  the future events of a company.

Question 8

An item is considered material if

Accepted Answer

A)  it doesn't cost a lot of money. 
B)  it is of a tangible good. 
C)  it is likely to influence the decision of an investor or creditor. 
D)  the cost of reporting the item is greater than its benefits. 
A)  it doesn't cost a lot of money. 
B)  it is of a tangible good. 
C)  it is likely to influence the decision of an investor or creditor. 
D)  the cost of reporting the item is greater than its benefits.

Question 9

The income statement of Annette Co, for the month of July shows net income of $2,400 based on Service Revenue $7,200, Salaries and Wages Expense $2,900 Supplies Expense $1,400, and Utilities Expense $500.In reviewing the statement, you discover the following.
1. Insurance expired during July of $600 was omitted.
2. Supplies expense includes $300 of supplies that are still on hand at July 31.
3. Depreciation on equipment of $250 was omitted.
4. Accrued but unpaid salaries and wages at July 31 of $400 were not included.
5. Services performed but unrecorded totaled $700.
Instructions
A. Prepare a correct income statement for July 2018.
B. What effect do the corrections have on the amount reported as total assets on the balance sheet?
C. What effect do the corrections have on the amount reported as total liabilities on the balance sheet?

Accepted Answer

A. @#IMG-DLM& Note to instructor: Net in

Question 10

Adjusting entries are

Accepted Answer

A)  not necessary if the accounting system is operating properly. 
B)  usually required before financial statements are prepared. 
C)  made whenever management desires to change an account balance. 
D)  made to balance sheet accounts only. 
A)  not necessary if the accounting system is operating properly. 
B)  usually required before financial statements are prepared. 
C)  made whenever management desires to change an account balance. 
D)  made to balance sheet accounts only.

Question 11

Failure to adjust a prepaid expense account for the amount expired will cause ______________ to be understated and ________________ to be overstated.

Accepted Answer

The answer of Failure to adjust a prepaid expense account...

Question 12

Fugazi City College sold season tickets for the 2018 football season for $240,000. A total of 8 games will be played during September, October and November. In September, two games were played. In October, three games were played. The balance in Unearned Ticket Revenue at October 31 is

Accepted Answer

A)  $0. 
B)  $60,000. 
C)  $90,000. 
D)  $150,000. 
A)  $0. 
B)  $60,000. 
C)  $90,000. 
D)  $150,000.

Question 13

Depreciation based on revaluation of land and buildings is permitted under

Accepted Answer

A)  GAAP but not IFRS. 
B)  IFRS but not GAAP. 
C)  both IFRS and GAAP. 
D)  neither IFRS nor GAAP.
IFRS, 
A)  GAAP but not IFRS. 
B)  IFRS but not GAAP. 
C)  both IFRS and GAAP. 
D)  neither IFRS nor GAAP.
IFRS,

Question 14

Lake of Fire Company purchased supplies costing $7,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $1,900 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be

Accepted Answer

A)  Debit Supplies Expense, $1,900; Credit Supplies, $1,900. 
B)  Debit Supplies, $5,100; Credit Supplies Expense, $5,100. 
C)  Debit Supplies Expense, $5,100; Credit Supplies, $5,100. 
D)  Debit Supplies, $1,900; Credit Supplies Expense, $1,900. 
A)  Debit Supplies Expense, $1,900; Credit Supplies, $1,900. 
B)  Debit Supplies, $5,100; Credit Supplies Expense, $5,100. 
C)  Debit Supplies Expense, $5,100; Credit Supplies, $5,100. 
D)  Debit Supplies, $1,900; Credit Supplies Expense, $1,900.

Question 15

Fugazi City College sold season tickets for the 2018 football season for $240,000. A total of 8 games will be played during September, October and November. In September, three games were played. The adjusting journal entry at September 30

Accepted Answer

A)  is not required. No adjusting entries will be made until the end of the season in November. 
B)  will include a debit to Cash and a credit to Ticket Revenue for $60,000. 
C)  will include a debit to Unearned Ticket Revenue and a credit to Ticket Revenue for $90,000. 
D)  will include a debit to Ticket Revenue and a credit to Unearned Ticket Revenue for $80,000. 
A)  is not required. No adjusting entries will be made until the end of the season in November. 
B)  will include a debit to Cash and a credit to Ticket Revenue for $60,000. 
C)  will include a debit to Unearned Ticket Revenue and a credit to Ticket Revenue for $90,000. 
D)  will include a debit to Ticket Revenue and a credit to Unearned Ticket Revenue for $80,000.

Question 16

A company usually determines the amount of supplies used during a period by

Accepted Answer

A)  adding the supplies on hand to the balance of the Supplies account. 
B)  summing the amount of supplies purchased during the period. 
C)  taking the difference between the supplies purchased and the supplies paid for during the period. 
D)  taking the difference between the balance of the Supplies account and the cost of supplies on hand. 
A)  adding the supplies on hand to the balance of the Supplies account. 
B)  summing the amount of supplies purchased during the period. 
C)  taking the difference between the supplies purchased and the supplies paid for during the period. 
D)  taking the difference between the balance of the Supplies account and the cost of supplies on hand.

Question 17

Crue Company had the following transactions during 2018:
.Sales of $4,500 on account
.Collected $2,500 for services to be performed in 2019
.Paid $1,625 cash in salaries
.Purchased airline tickets for $250 in December for a trip to take place in 2019
What is Crue's 2018 net income using cash-basis accounting after cash?

Accepted Answer

A)  $625. 
B)  $875. 
C)  $5,125. 
D)  $5,375. 
A)  $625. 
B)  $875. 
C)  $5,125. 
D)  $5,375.

Question 18

Presented below is the Trial Balance and Adjusted Trial Balance for Morning Jacket Company on December 31.   Instructions
Prepare in journal form, with explanations, the adjusting entries that explain the changes in the balances from the trial balance to the adjusted trial balance.

Accepted Answer

The answer of Presented below is the Trial Balance and...

Question 19

Yo La Corporation issued a one-year, 6%, $100,000 note on August 31, 2018. Interest expense for the year ended December 31, 2018 was

Accepted Answer

A)  $6,000. 
B)  $2,500. 
C)  $2,000. 
D)  $1,500. 
A)  $6,000. 
B)  $2,500. 
C)  $2,000. 
D)  $1,500.

Question 20

An adjusted trial balance proves the ______________ of the total debit and credit balances after all ______________ entries have been made.

Accepted Answer

The answer of An adjusted trial balance proves the ______________...

The cost of a depreciable asset less accumulated depreciation reflects the book value of the asset.

Expenses incurred but not yet paid or recorded are called

Depreciation expense for a period is the

The difference between the cost of a depreciable asset and its related accumulated depreciation is referred to as the

A small company may be able to justify using a cash-basis of accounting if they have

An adjusting entry recording accrued salaries for a period indicates that Salaries Expense has been but has not yet been or recorded.

If accounting information has relevance, it is useful in making predictions about

An item is considered material if

Adjusting entries are

Failure to adjust a prepaid expense account for the amount expired will cause to be understated and __ to be overstated.

Fugazi City College sold season tickets for the 2018 football season for $240,000. A total of 8 games will be played during September, October and November. In September, two games were played. In October, three games were played. The balance in Unearned Ticket Revenue at October 31 is

Depreciation based on revaluation of land and buildings is permitted under

Lake of Fire Company purchased supplies costing $7,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $1,900 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be

Fugazi City College sold season tickets for the 2018 football season for $240,000. A total of 8 games will be played during September, October and November. In September, three games were played. The adjusting journal entry at September 30

A company usually determines the amount of supplies used during a period by

Presented below is the Trial Balance and Adjusted Trial Balance for Morning Jacket Company on December 31. Instructions Prepare in journal form, with explanations, the adjusting entries that explain the changes in the balances from the trial balance to the adjusted trial balance.

Yo La Corporation issued a one-year, 6%, $100,000 note on August 31, 2018. Interest expense for the year ended December 31, 2018 was

An adjusted trial balance proves the of the total debit and credit balances after all entries have been made.

Accounting in Action

The Recording Process

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

Exam 3: Adjusting the Accounts

The cost of a depreciable asset less accumulated depreciation reflects the book value of the asset.

Expenses incurred but not yet paid or recorded are called

Depreciation expense for a period is the

The difference between the cost of a depreciable asset and its related accumulated depreciation is referred to as the

A small company may be able to justify using a cash-basis of accounting if they have

An adjusting entry recording accrued salaries for a period indicates that Salaries Expense has been ________________ but has not yet been ________________ or recorded.

If accounting information has relevance, it is useful in making predictions about

An item is considered material if

Adjusting entries are

Failure to adjust a prepaid expense account for the amount expired will cause ______________ to be understated and ________________ to be overstated.

Fugazi City College sold season tickets for the 2018 football season for $240,000. A total of 8 games will be played during September, October and November. In September, two games were played. In October, three games were played. The balance in Unearned Ticket Revenue at October 31 is

Depreciation based on revaluation of land and buildings is permitted under

Lake of Fire Company purchased supplies costing $7,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $1,900 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be

Fugazi City College sold season tickets for the 2018 football season for $240,000. A total of 8 games will be played during September, October and November. In September, three games were played. The adjusting journal entry at September 30

A company usually determines the amount of supplies used during a period by

Presented below is the Trial Balance and Adjusted Trial Balance for Morning Jacket Company on December 31. Instructions Prepare in journal form, with explanations, the adjusting entries that explain the changes in the balances from the trial balance to the adjusted trial balance.

Yo La Corporation issued a one-year, 6%, $100,000 note on August 31, 2018. Interest expense for the year ended December 31, 2018 was

An adjusted trial balance proves the ______________ of the total debit and credit balances after all ______________ entries have been made.

Accounting in Action

The Recording Process

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

An adjusting entry recording accrued salaries for a period indicates that Salaries Expense has been but has not yet been or recorded.

Failure to adjust a prepaid expense account for the amount expired will cause to be understated and __ to be overstated.

An adjusted trial balance proves the of the total debit and credit balances after all entries have been made.