Question 1

Expired costs are called assets.

Accepted Answer

A) True 
 B)False

Question 2

When initially recording the cost of land purchased, most companies use the current value.

Accepted Answer

A) True 
 B)False

Question 3

The basis of accounting that fails to take into consideration amounts earned that are not collected and expenses incurred but are not paid is the _________________________.

Accepted Answer

The answer of The basis of accounting that fails to...

Question 4

Income statement accounts are also known as which of the following?

Accepted Answer

A) Nominal accounts 
B) Real accounts 
C) Closing accounts 
D) Both a and c 
A) Nominal accounts 
B) Real accounts 
C) Closing accounts 
D) Both a and c

Question 5

Tracy, Inc.
  
-Refer to the trial balance for Tracy, Inc.
On July 31, the amount of supplies on hand is $520.What amount is reported in the July income statement for supplies expense?

Accepted Answer

A) $520 
B) $1,400 
C) $1,920 
D) $880 
A) $520 
B) $1,400 
C) $1,920 
D) $880

Question 6

When are revenues and expenses recognized in the same accounting period that cash receipts and payments occur?

Accepted Answer

A) Under the cash basis of accounting 
B) Under the accrual basis of accounting 
C) Under the adjusting method of accounting 
D) Under both the cash and accrual bases of accounting 
A) Under the cash basis of accounting 
B) Under the accrual basis of accounting 
C) Under the adjusting method of accounting 
D) Under both the cash and accrual bases of accounting

Question 7

Autumn Resorts purchased guest room furniture on January 1, 2014 for $120,000.The furniture has an estimated useful life of ten years.What amount will appear on Autumn's income statement for depreciation expense for the year ending June 30, 2015?

Accepted Answer

A) $1,000 
B) $6,000 
C) $10,000 
D) $12,000 
A) $1,000 
B) $6,000 
C) $10,000 
D) $12,000

Question 8

Gear Shop purchased supplies at a cost of $1,000 during the year.At January 1, the beginning balance in the supplies account was $300.At December 31, supplies on hand are $100.Determine supplies expense for the year.

Accepted Answer

A) $ 1,300 
B) $ 1,200 
C) $ 1,100 
D) $ 1,400 
A) $ 1,300 
B) $ 1,200 
C) $ 1,100 
D) $ 1,400

Question 9

Statements prepared monthly, quarterly, or at other intervals less than a year in duration are called
_____________________.

Accepted Answer

The answer of Statements prepared monthly, quarterly, or at other...

Question 10

Country Club Center sells season memberships for $200 each.During January of 2015, 60 season memberships were sold.As of March 31, 2015, only $3,000 of season membership fees had been collected from customers.The season runs for 4 months starting May 15, 2015.Which one of the following is an amount reported on the financial statements for the period ending March 31, 2015?

Accepted Answer

A) Unearned membership revenue of $3,000 
B) Unearned membership revenue of $9,000 
C) Accounts receivable of $3,000 
D) Membership revenue of $9,000 
A) Unearned membership revenue of $3,000 
B) Unearned membership revenue of $9,000 
C) Accounts receivable of $3,000 
D) Membership revenue of $9,000

Question 11

Which of the following adjusting entries involves the cash account?

Accepted Answer

A) Deferred Revenue 
B) Accrued Asset 
C) Deferred Liability 
D) None of the Above 
A) Deferred Revenue 
B) Accrued Asset 
C) Deferred Liability 
D) None of the Above

Question 12

Lucky Company purchased a truck at a cost of $12,000 in 2010.As of January 1, 2015, depreciation of $10,000 had been recorded on this asset.Depreciation expense for 2015 is $2,000.After the adjustments are recorded and posted at December 31, 2015, what is the carrying value of the truck?

Accepted Answer

A) $ 2,000 
B) $ 5,500 
C) $12,000 
D) $ -0- 
A) $ 2,000 
B) $ 5,500 
C) $12,000 
D) $ -0-

Question 13

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) Stockholders' equity being overstated 
D) Total assets being understated 
A) Net income being understated 
B) An overstatement of liabilities 
C) Stockholders' equity being overstated 
D) Total assets being understated

Question 14

According to the revenue recognition principle, revenues are recognized when they are
_________________________.

Accepted Answer

The answer of According to the revenue recognition principle, revenues...

Question 15

Which one of the following adjustments decreases net income for the period?

Accepted Answer

A) Recognition of depreciation on plant assets 
B) Recognition of interest on a note receivable 
C) Recognition of services that had been provided to customers but the cash has not yet been received 
D) Recognition of rent as earned that had been received in advance from customers 
A) Recognition of depreciation on plant assets 
B) Recognition of interest on a note receivable 
C) Recognition of services that had been provided to customers but the cash has not yet been received 
D) Recognition of rent as earned that had been received in advance from customers

Question 16

Windstar Corp.purchased supplies at a cost of $6,000 during the year.At December 31, supplies on hand are $1,400.Supplies expense for the year was $5,200.How much were supplies on hand at January 1?

Accepted Answer

A) $ 2,200 
B) $ 11,200 
C) $ 1,400 
D) $ 600 
A) $ 2,200 
B) $ 11,200 
C) $ 1,400 
D) $ 600

Question 17

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

Accepted Answer

A) Journalizing business transactions 
B) Recording and posting adjustments 
C) Closing the accounts 
D) Preparing financial statements 
A) Journalizing business transactions 
B) Recording and posting adjustments 
C) Closing the accounts 
D) Preparing financial statements

Question 18

Which of the following is the attribute used to measure many assets that are recognized on a balance sheet, because it is more objective and verifiable?

Accepted Answer

A) Market value 
B) Historical cost 
C) Liquidation value 
D) Current replacement cost 
A) Market value 
B) Historical cost 
C) Liquidation value 
D) Current replacement cost

Question 19

Financial statements should be prepared before any adjustments are made.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following situations does not require an adjusting entry at the end of May?

Accepted Answer

A) At the end of May, Bolton Industries pays the custodian for May office cleaning services. 
B) On May 1, Bolton Industries paid rent for six months on its office building. 
C) On May 1, Bolton Industries began delivery service to a client who will pay at the end of a three-month period. 
D) On May 1, Bolton Industries purchased delivery equipment with an estimated useful life of six years. 
A) At the end of May, Bolton Industries pays the custodian for May office cleaning services. 
B) On May 1, Bolton Industries paid rent for six months on its office building. 
C) On May 1, Bolton Industries began delivery service to a client who will pay at the end of a three-month period. 
D) On May 1, Bolton Industries purchased delivery equipment with an estimated useful life of six years.

Expired costs are called assets.

When initially recording the cost of land purchased, most companies use the current value.

The basis of accounting that fails to take into consideration amounts earned that are not collected and expenses incurred but are not paid is the _________________________.

Income statement accounts are also known as which of the following?

Tracy, Inc. -Refer to the trial balance for Tracy, Inc. On July 31, the amount of supplies on hand is $520.What amount is reported in the July income statement for supplies expense?

When are revenues and expenses recognized in the same accounting period that cash receipts and payments occur?

Autumn Resorts purchased guest room furniture on January 1, 2014 for $120,000.The furniture has an estimated useful life of ten years.What amount will appear on Autumn's income statement for depreciation expense for the year ending June 30, 2015?

Gear Shop purchased supplies at a cost of $1,000 during the year.At January 1, the beginning balance in the supplies account was $300.At December 31, supplies on hand are $100.Determine supplies expense for the year.

Statements prepared monthly, quarterly, or at other intervals less than a year in duration are called _____________________.

Which of the following adjusting entries involves the cash account?

Lucky Company purchased a truck at a cost of $12,000 in 2010.As of January 1, 2015, depreciation of $10,000 had been recorded on this asset.Depreciation expense for 2015 is $2,000.After the adjustments are recorded and posted at December 31, 2015, what is the carrying value of the truck?

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

According to the revenue recognition principle, revenues are recognized when they are _________________________.

Which one of the following adjustments decreases net income for the period?

Windstar Corp.purchased supplies at a cost of $6,000 during the year.At December 31, supplies on hand are $1,400.Supplies expense for the year was $5,200.How much were supplies on hand at January 1?

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

Which of the following is the attribute used to measure many assets that are recognized on a balance sheet, because it is more objective and verifiable?

Financial statements should be prepared before any adjustments are made.

Which of the following situations does not require an adjusting entry at the end of May?

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

Exam 4: Income Measurement and Accrual Accounting

Expired costs are called assets.

When initially recording the cost of land purchased, most companies use the current value.

The basis of accounting that fails to take into consideration amounts earned that are not collected and expenses incurred but are not paid is the _________________________.

Income statement accounts are also known as which of the following?

Tracy, Inc. -Refer to the trial balance for Tracy, Inc. On July 31, the amount of supplies on hand is $520.What amount is reported in the July income statement for supplies expense?

When are revenues and expenses recognized in the same accounting period that cash receipts and payments occur?

Autumn Resorts purchased guest room furniture on January 1, 2014 for $120,000.The furniture has an estimated useful life of ten years.What amount will appear on Autumn's income statement for depreciation expense for the year ending June 30, 2015?

Gear Shop purchased supplies at a cost of $1,000 during the year.At January 1, the beginning balance in the supplies account was $300.At December 31, supplies on hand are $100.Determine supplies expense for the year.

Statements prepared monthly, quarterly, or at other intervals less than a year in duration are called _____________________.

Which of the following adjusting entries involves the cash account?

Lucky Company purchased a truck at a cost of $12,000 in 2010.As of January 1, 2015, depreciation of $10,000 had been recorded on this asset.Depreciation expense for 2015 is $2,000.After the adjustments are recorded and posted at December 31, 2015, what is the carrying value of the truck?

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

According to the revenue recognition principle, revenues are recognized when they are _________________________.

Which one of the following adjustments decreases net income for the period?

Windstar Corp.purchased supplies at a cost of $6,000 during the year.At December 31, supplies on hand are $1,400.Supplies expense for the year was $5,200.How much were supplies on hand at January 1?

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

Which of the following is the attribute used to measure many assets that are recognized on a balance sheet, because it is more objective and verifiable?

Financial statements should be prepared before any adjustments are made.

Which of the following situations does not require an adjusting entry at the end of May?

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters