Question 1

Under the ____________________ basis of accounting, revenues are recognized when earned and expenses when incurred.

Accepted Answer

The answer of Under the ____________________ basis of accounting, revenues...

Question 2

What effect does "recognizing revenue at the end of the accounting period for rent previously received in advance" have on the accounting equation for the insurance company?

Accepted Answer

A) Assets increase and liabilities decrease. 
B) Assets increase and Stockholders' equity increases. 
C) Assets decrease and liabilities decrease. 
D) Liabilities decrease and Stockholders' equity increases. 
A) Assets increase and liabilities decrease. 
B) Assets increase and Stockholders' equity increases. 
C) Assets decrease and liabilities decrease. 
D) Liabilities decrease and Stockholders' equity increases.

Question 3

Match each statement to the item listed below
-Refers to the process of assigning the cost of an asset such as a building to expense over the asset's useful life

Accepted Answer

A) Accrual basis accounting 
B) Adjusted trial balance 
C) Adjusting entries 
D) Cash basis accounting 
E) Contra accounts
F)Depreciation
G)Matching principle
H)Revenue recognition principle
I)Time period assumption
J)Worksheet 
A) Accrual basis accounting 
B) Adjusted trial balance 
C) Adjusting entries 
D) Cash basis accounting 
E) Contra accounts
F)Depreciation
G)Matching principle
H)Revenue recognition principle
I)Time period assumption
J)Worksheet

Question 4

Assets become expenses when?

Accepted Answer

A) Purchased for cash or on credit. 
B) Asset is delivered. 
C) They are paid for in cash. 
D) Their economic benefits expire. 
A) Purchased for cash or on credit. 
B) Asset is delivered. 
C) They are paid for in cash. 
D) Their economic benefits expire.

Question 5

A landscaping company operates five days per week with a daily payroll of $16,000. Employees are paid every Saturday for the workweek just completed (Monday through Friday). The last day of the month is Wednesday, March 31. What is the amount of Wages Expense recorded on the next payday, Saturday, April 3?

Accepted Answer

A) $ -0- 
B) $48,000 
C) $32,000 
D) $80,000 
A) $ -0- 
B) $48,000 
C) $32,000 
D) $80,000

Question 6

Chicago Works employs 20 workers. Each employee is paid wages of $25 per hour and works an 8-hour workday, Monday through Friday. Employee wages are paid every Friday for the workweek just ending.
A)Compute the dollar amount of the weekly payroll.
B)The last payday of the year was Friday, December 26. Prepare the adjusting entry for wages on Wednesday, December 31, the last day of the fiscal period.

Accepted Answer

The answer of Chicago Works employs 20 workers. Each employee...

Question 7

If the Income Summary account has a credit balance just prior to closing it to retained earnings, the company must have incurred a net income for the year.

Accepted Answer

A) True 
 B)False

Question 8

The following are selected data from a large company's financial statements:   Identify the steps in the accounting cycle that must have been completed prior to determining these amounts.

Accepted Answer

Steps in accounting cycle are:
1.Collect

Question 9

The amount of interest accrued is added to the note payable account and reported in the liabilities section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 10

Which one of the following is the last step in the accounting cycle?

Accepted Answer

A) analyze transactions 
B) recording and posting adjustments 
C) closing the accounts 
D) preparing financial statements 
A) analyze transactions 
B) recording and posting adjustments 
C) closing the accounts 
D) preparing financial statements

Question 11

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

Accepted Answer

A) a deferred (prepaid) expense 
B) a deferred (unearned) revenue 
C) an accrued expense 
D) an accrued revenue 
A) a deferred (prepaid) expense 
B) a deferred (unearned) revenue 
C) an accrued expense 
D) an accrued revenue

Question 12

When an expense is incurred prior to the payment of cash for that expense, an adjustment that increases an expense account and increases a liability is prepared.

Accepted Answer

A) True 
 B)False

Question 13

Adjusting entries are prepared using the accrual basis of accounting for preparing financial statements.

Accepted Answer

A) True 
 B)False

Question 14

What happens to the accounting equation when the adjustment for depreciation expense for the accounting period is recorded?

Accepted Answer

A) assets decrease and stockholders' equity decreases 
B) assets increase and stockholders' equity increases 
C) assets decrease and liabilities decrease 
D) liabilities increase and stockholders' equity decreases 
A) assets decrease and stockholders' equity decreases 
B) assets increase and stockholders' equity increases 
C) assets decrease and liabilities decrease 
D) liabilities increase and stockholders' equity decreases

Question 15

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.)
-Interest is earned on notes receivable, but not yet received

Accepted Answer

A) a deferred (prepaid) expense 
B) a deferred (unearned) revenue 
C) an accrued expense 
D) an accrued revenue 
A) a deferred (prepaid) expense 
B) a deferred (unearned) revenue 
C) an accrued expense 
D) an accrued revenue

Question 16

Which one of the following is an example of a deferred revenue?

Accepted Answer

A) Sales are made to customers on credit. 
B) Revenue has been earned but not yet recorded. 
C) Payments are received prior to providing the services to customers. 
D) Cash sales are made to customers. 
A) Sales are made to customers on credit. 
B) Revenue has been earned but not yet recorded. 
C) Payments are received prior to providing the services to customers. 
D) Cash sales are made to customers.

Question 17

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, there was a $0 balance in the salaries payable account. How much cash did the company pay for salaries during the year?

Accepted Answer

$41,000
$45,000 (Sal

Question 18

Match each statement to the item listed below
-Without these, some of the account balances will not be up-to-date at the time financial statements are prepared

Accepted Answer

A) Accrual basis accounting 
B) Adjusted trial balance 
C) Adjusting entries 
D) Cash basis accounting 
E) Contra accounts
F)Depreciation
G)Matching principle
H)Revenue recognition principle
I)Time period assumption
J)Worksheet 
A) Accrual basis accounting 
B) Adjusted trial balance 
C) Adjusting entries 
D) Cash basis accounting 
E) Contra accounts
F)Depreciation
G)Matching principle
H)Revenue recognition principle
I)Time period assumption
J)Worksheet

Question 19

Cozy Corporation purchased supplies at a cost of $15,000 during the year. At January 1, supplies on hand were $5,000. At December 31, supplies on hand are $2,000. Calculate supplies expense for the year.

Accepted Answer

A) $18,000 
B) $15,000 
C) $13,000 
D) $2,000 
A) $18,000 
B) $15,000 
C) $13,000 
D) $2,000

Question 20

____________________ are journal entries made at the end of the accounting period to return the balance in all temporary accounts to zero.

Accepted Answer

The answer of ____________________ are journal entries made at the...

Under the ____________________ basis of accounting, revenues are recognized when earned and expenses when incurred.

What effect does "recognizing revenue at the end of the accounting period for rent previously received in advance" have on the accounting equation for the insurance company?

Match each statement to the item listed below -Refers to the process of assigning the cost of an asset such as a building to expense over the asset's useful life

Assets become expenses when?

If the Income Summary account has a credit balance just prior to closing it to retained earnings, the company must have incurred a net income for the year.

The following are selected data from a large company's financial statements: Identify the steps in the accounting cycle that must have been completed prior to determining these amounts.

The amount of interest accrued is added to the note payable account and reported in the liabilities section of the balance sheet.

Which one of the following is the last step in the accounting cycle?

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

When an expense is incurred prior to the payment of cash for that expense, an adjustment that increases an expense account and increases a liability is prepared.

Adjusting entries are prepared using the accrual basis of accounting for preparing financial statements.

What happens to the accounting equation when the adjustment for depreciation expense for the accounting period is recorded?

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.) -Interest is earned on notes receivable, but not yet received

Which one of the following is an example of a deferred revenue?

Match each statement to the item listed below -Without these, some of the account balances will not be up-to-date at the time financial statements are prepared

Cozy Corporation purchased supplies at a cost of $15,000 during the year. At January 1, supplies on hand were $5,000. At December 31, supplies on hand are $2,000. Calculate supplies expense for the year.

____________________ are journal entries made at the end of the accounting period to return the balance in all temporary accounts to zero.

Accounting and The Financial Statements

The Accounting Information System

Internal Control And Cash

Sales And Receivables

Cost Of Goods Sold and Inventory

Operating Assets

Current and Contingent Liabilities

Long Term Liabilities

Stockholders Apos Equity

The Statement Of Cash Flows

Financial Statement Analysis

Finance and Stock Market Equilibrium

Filters

Exam 3: Accrual Accounting

Under the ____________________ basis of accounting, revenues are recognized when earned and expenses when incurred.

What effect does "recognizing revenue at the end of the accounting period for rent previously received in advance" have on the accounting equation for the insurance company?

Match each statement to the item listed below -Refers to the process of assigning the cost of an asset such as a building to expense over the asset's useful life

Assets become expenses when?

If the Income Summary account has a credit balance just prior to closing it to retained earnings, the company must have incurred a net income for the year.

The following are selected data from a large company's financial statements: Identify the steps in the accounting cycle that must have been completed prior to determining these amounts.

The amount of interest accrued is added to the note payable account and reported in the liabilities section of the balance sheet.

Which one of the following is the last step in the accounting cycle?

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

When an expense is incurred prior to the payment of cash for that expense, an adjustment that increases an expense account and increases a liability is prepared.

Adjusting entries are prepared using the accrual basis of accounting for preparing financial statements.

What happens to the accounting equation when the adjustment for depreciation expense for the accounting period is recorded?

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.) -Interest is earned on notes receivable, but not yet received

Which one of the following is an example of a deferred revenue?

Match each statement to the item listed below -Without these, some of the account balances will not be up-to-date at the time financial statements are prepared

Cozy Corporation purchased supplies at a cost of $15,000 during the year. At January 1, supplies on hand were $5,000. At December 31, supplies on hand are $2,000. Calculate supplies expense for the year.

____________________ are journal entries made at the end of the accounting period to return the balance in all temporary accounts to zero.

Accounting and The Financial Statements

The Accounting Information System

Internal Control And Cash

Sales And Receivables

Cost Of Goods Sold and Inventory

Operating Assets

Current and Contingent Liabilities

Long Term Liabilities

Stockholders Apos Equity

The Statement Of Cash Flows

Financial Statement Analysis

Finance and Stock Market Equilibrium

Filters