Question 1

A(n) ____________________ revenue results when cash is received before it is earned and reported on the income statement.

Accepted Answer

The answer of A(n) ____________________ revenue results when cash is...

Question 2

One effect of recognizing depreciation is to decrease net income.

Accepted Answer

A) True 
 B)False

Question 3

A franchiser is permitted to recognize the revenue from the sale of a franchise whenever they wish under accrual-basis accounting.

Accepted Answer

A) True 
 B)False

Question 4

Adjustments are recorded for all transactions involving outside entities.

Accepted Answer

A) True 
 B)False

Question 5

What is the effect on the accounting equation when a company recognizes rent as earned that had previously been received in advance from customers?

Accepted Answer

A) Assets increase 
B) Revenues decrease 
C) Liabilities increase 
D) Net income increases 
A) Assets increase 
B) Revenues decrease 
C) Liabilities increase 
D) Net income increases

Question 6

Explain the differences between the cash and accrual basis of accounting and how the adjusting process fits in.

Accepted Answer

The cash basis of accounting assumes rev

Question 7

Match each statement to the item listed below
-A schedule that facilitates preparation of the financial statements

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 8

-Refer to Cabana Club. The company reported $210,000,000 and $120,000,000 of accrued interest payable in the liability section of its balance sheet at December 31, 2020 and 2019, respectively. How much cash did it pay during 2020 for interest?

Accepted Answer

$303,800,000
$393,800,000 (Int

Question 9

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

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 10

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.)
-Depreciation on a building is recorded

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 11

The ____________ basis of accounting recognizes revenue when it is received regardless of when the revenue is earned.

Accepted Answer

The answer of The ____________ basis of accounting recognizes revenue...

Question 12

Balance sheet accounts are also known as which of the following?

Accepted Answer

A) nominal accounts 
B) permanent accounts 
C) temporary accounts 
D) closing accounts 
A) nominal accounts 
B) permanent accounts 
C) temporary accounts 
D) closing accounts

Question 13

Which of the following places the steps in preparing a worksheet in the correct order: 
1 - Adjusted trial balance 4 - Income statement
2 - Adjustments 5 - Retained earnings
3 - Balance sheet 6 - Unadjusted trial balance

Accepted Answer

A) 6 - 2 - 1 - 3 - 4 - 5 
B) 6 - 1 - 2 - 5 - 4 - 3 
C) 6 - 2 - 1 - 4 - 5 - 3 
D) 6 - 2 - 1 - 4 - 3 - 1 
A) 6 - 2 - 1 - 3 - 4 - 5 
B) 6 - 1 - 2 - 5 - 4 - 3 
C) 6 - 2 - 1 - 4 - 5 - 3 
D) 6 - 2 - 1 - 4 - 3 - 1

Question 14

The following unadjusted account balance was taken from the accounting records at December 31, 2019:
 
A)Prepare any adjusting entries necessary at December 31, 2019, for each of the transactions that follow:
1.During the year, the company sold 12-month subscriptions for its flagship magazine. Half of the subscriptions began October 1, 2019, while the other half began December 1, 2019.
2.The company estimates its income taxes to be 40 percent of its estimated income of $500,000.
B)Prepare the current liabilities section of the balance sheet by listing any current liabilities and the related amounts as a result of the adjustments in Part A.

Accepted Answer

The answer of The following unadjusted account balance was taken...

Question 15

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

Accepted Answer

A) Recognize revenue over the passage of time. 
B) Recognize revenue when the customer takes possession of the product. 
C) Recognize revenue when cash is collected. 
D) Recognize revenue when service is performed. 
A) Recognize revenue over the passage of time. 
B) Recognize revenue when the customer takes possession of the product. 
C) Recognize revenue when cash is collected. 
D) Recognize revenue when service is performed.

Question 16

The worksheet facilitates preparation of all of the following financial statements except:

Accepted Answer

A) Cash Flow Statement 
B) Balance Sheet 
C) Retained Earnings Statement 
D) Income Statement 
A) Cash Flow Statement 
B) Balance Sheet 
C) Retained Earnings Statement 
D) Income Statement

Question 17

Dividends, like expenses, are closed to the income summary account during the end-of-period closing process.

Accepted Answer

A) True 
 B)False

Question 18

____________________ is the name given to balance sheet accounts because their balances are carried forward from the current accounting period to future accounting periods.

Accepted Answer

The answer of ____________________ is the name given to balance...

Question 19

Accumulated Depreciation

Accepted Answer

A) increases with a debit. 
B) decreases with a credit. 
C) increases with a credit. 
D) is a adjunct account. 
A) increases with a debit. 
B) decreases with a credit. 
C) increases with a credit. 
D) is a adjunct account.

Question 20

Failure to record the supplies used during the year would result in which of the following?

Accepted Answer

A) Net income being understated. 
B) An overstatement of liabilities. 
C) Assets and stockholders' equity being overstated. 
D) Total assets being understated. 
A) Net income being understated. 
B) An overstatement of liabilities. 
C) Assets and stockholders' equity being overstated. 
D) Total assets being understated.

A(n) ____________________ revenue results when cash is received before it is earned and reported on the income statement.

One effect of recognizing depreciation is to decrease net income.

A franchiser is permitted to recognize the revenue from the sale of a franchise whenever they wish under accrual-basis accounting.

Adjustments are recorded for all transactions involving outside entities.

What is the effect on the accounting equation when a company recognizes rent as earned that had previously been received in advance from customers?

Explain the differences between the cash and accrual basis of accounting and how the adjusting process fits in.

Match each statement to the item listed below -A schedule that facilitates preparation of the financial statements

-Refer to Cabana Club. The company reported $210,000,000 and $120,000,000 of accrued interest payable in the liability section of its balance sheet at December 31, 2020 and 2019, respectively. How much cash did it pay during 2020 for interest?

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

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.) -Depreciation on a building is recorded

The ____________ basis of accounting recognizes revenue when it is received regardless of when the revenue is earned.

Balance sheet accounts are also known as which of the following?

Which of the following places the steps in preparing a worksheet in the correct order: 1 - Adjusted trial balance 4 - Income statement 2 - Adjustments 5 - Retained earnings 3 - Balance sheet 6 - Unadjusted trial balance

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

The worksheet facilitates preparation of all of the following financial statements except:

Dividends, like expenses, are closed to the income summary account during the end-of-period closing process.

____________________ is the name given to balance sheet accounts because their balances are carried forward from the current accounting period to future accounting periods.

Accumulated Depreciation

Failure to record the supplies used during the year would result in which of the following?

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

A(n) ____________________ revenue results when cash is received before it is earned and reported on the income statement.

One effect of recognizing depreciation is to decrease net income.

A franchiser is permitted to recognize the revenue from the sale of a franchise whenever they wish under accrual-basis accounting.

Adjustments are recorded for all transactions involving outside entities.

What is the effect on the accounting equation when a company recognizes rent as earned that had previously been received in advance from customers?

Explain the differences between the cash and accrual basis of accounting and how the adjusting process fits in.

Match each statement to the item listed below -A schedule that facilitates preparation of the financial statements

-Refer to Cabana Club. The company reported $210,000,000 and $120,000,000 of accrued interest payable in the liability section of its balance sheet at December 31, 2020 and 2019, respectively. How much cash did it pay during 2020 for interest?

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

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.) -Depreciation on a building is recorded

The ____________ basis of accounting recognizes revenue when it is received regardless of when the revenue is earned.

Balance sheet accounts are also known as which of the following?

Which of the following places the steps in preparing a worksheet in the correct order: 1 - Adjusted trial balance 4 - Income statement 2 - Adjustments 5 - Retained earnings 3 - Balance sheet 6 - Unadjusted trial balance

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

The worksheet facilitates preparation of all of the following financial statements except:

Dividends, like expenses, are closed to the income summary account during the end-of-period closing process.

____________________ is the name given to balance sheet accounts because their balances are carried forward from the current accounting period to future accounting periods.

Accumulated Depreciation

Failure to record the supplies used during the year would result in which of the following?

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