Exam 3: Accrual Accounting

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.) -Rent Revenue

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.) -Utility expense was incurred, but not yet paid at the end of the year

California Condos California Condos uses the accrual basis of accounting, and had the following account balances on its financial statements at December 31, 2019. -Refer to California Condos. On January 1, the balance of Unearned Rent Revenue was $0. The company collected cash from tenants of its apartment building totaling $600,000 during 2019. How much should be reported as unearned rent revenue as of December 31, 2019?

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.) -Revenue is earned for previously received advance cash collections

Select the correct revenue recognition principle for each of the following. (Choices may be used more than once.) -Interest

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.) -Depreciation Expense

Carlock Systems received a 6-month, 12% note for $50,000 from a customer on November 1, 2019. The note is due on April 30, 2020. Assuming the company's accounting period ends on December 31, how much interest revenue should be recognized during 2019 and 2020? ​ 2019 2020

Publicly traded companies must prepare an additional financial statement called The Worksheet.

During the closing process, revenues, expenses, and dividends must be closed to the Income Summary account.

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.) -Rent had been incurred, but not yet paid

Measurement of the economic effects on an entity involves each of the following except

Why is the cash basis of accounting too limited for proper financial reporting?

-Refer to Cabana Club. Identify three specific accounts in which the company might need to accrue additional expenses as a result of adjustments. Indicate the effects of these adjustments on the fundamental accounting equation. Ignore amounts.

Calmar Corporation sold merchandise to a customer for $30,000 on credit on July 15. The customer paid Calmar Corporation the amount due on July 31. Under the accrual basis of accounting, how should Calmar Corporation record the transaction?

Which one of the following steps in the accounting cycle is completed only at the end of an accounting period?

Since dividends do not impact income, the dividends account is not closed to the income summary account.

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.) -An office building was acquired for cash

Which one of the following is not a proper method of recognizing assets as expenses in a particular accounting period?

The ____________________ principle requires that expenses be recorded and reported in the same period as the revenue that it helped to generate.

Select the incorrect statement about worksheets.