Question 1

Which one of the following adjustments will increase assets?

Accepted Answer

A)  Interest incurred on money borrowed during the period but not yet paid to the bank is accrued 
B)  Rent revenue is recorded for amounts owed by a tenant but not yet paid 
C)  The use of supplies is recorded 
D)  Depreciation for the period is recorded 
A)  Interest incurred on money borrowed during the period but not yet paid to the bank is accrued 
B)  Rent revenue is recorded for amounts owed by a tenant but not yet paid 
C)  The use of supplies is recorded 
D)  Depreciation for the period is recorded

Question 2

The justification for the accrual basis of accounting lies in the needs of financial statement users for periodic information on the financial position and the profitability of the entity.

Accepted Answer

A) True 
 B)False

Question 3

For each transaction select the letter of the type of adjustment that would be required.
-The depreciation on office equipment used during the current year is recorded

Accepted Answer

A) Deferred expense 
B) Deferred revenue 
C) Accrued liability 
D) Accrued asset 
A) Deferred expense 
B) Deferred revenue 
C) Accrued liability 
D) Accrued asset

Question 4

Norys Corp. received an 8-month, 9% note for $100,000 from its agent on October 1, 2014. The note is due on May 30, 2015. If Norys' accounting period ends on December 31, 2014, how much interest revenue should Norys recognize during 2014 and 2015?

Accepted Answer

The answer of Norys Corp. received an 8-month, 9% note...

Question 5

Accountants often prepare work sheets at the end of an accounting period in place of financial statements.

Accepted Answer

A) True 
 B)False

Question 6

Barker Corp. began operations on November 30, 2015, and immediately paid $48,000 for 6 months rent in advance for rental of a parking lot for the period beginning December 1, 2015. Barker's accounting period ends on December 31, 2015. Indicate how much will be reported for each of the following accounts on Barker's financial statements for the period ending December 31, 2015. If the amount reported is zero, indicate so by writing $0, and explain why zero is the appropriate amount.
A Rent Expense
B Rent Payable
C Rent revenue
D Prepaid Rent

Accepted Answer

A $8,000 $48,000 Prepaid Rent/6 Months
B

Question 7

Which of the following transactions involves an accrued asset?

Accepted Answer

A)  Wages earned by employees but not yet paid 
B)  Rent collected in advance from a tenant 
C)  Rent owed by a tenant but not yet collected 
D)  One year's premium on life insurance policy paid in advance 
A)  Wages earned by employees but not yet paid 
B)  Rent collected in advance from a tenant 
C)  Rent owed by a tenant but not yet collected 
D)  One year's premium on life insurance policy paid in advance

Question 8

For each transaction select the letter of the type of adjustment that would be required
-Interest earned on notes receivable, but not yet received is recorded

Accepted Answer

A) Deferred expense 
B) Deferred revenue 
C) Accrued liability 
D) Accrued asset 
A) Deferred expense 
B) Deferred revenue 
C) Accrued liability 
D) Accrued asset

Question 9

Dino's Pizza employs 10 workers in its plant. Each employee is paid $8 per hour and works 8 hours per day, Monday through Friday. Employees are paid every Wednesday for the previous Monday through Friday workweek. The last payday was Wednesday, May 28.
A Compute the dollar amount of the weekly payroll.
B What is the effect on the accounting equation of the adjusting entry required on Friday, May
30, the last day of Dino's Pizza fiscal period?
C What special precautions are necessary upon recording the payment of wages to employees on the next payday, June 4?

Accepted Answer

A 8 hours x $8.00 per hour x 5 days x 10

Question 10

What happens to the accounting equation when the adjustment that recognizes accrued interest revenue is recorded?

Accepted Answer

A)  Assets increase and liabilities increase 
B)  Assets increase and stockholders' equity increases 
C)  Assets decrease and liabilities decrease 
D)  Stockholders' equity increases and decreases by the same amount 
A)  Assets increase and liabilities increase 
B)  Assets increase and stockholders' equity increases 
C)  Assets decrease and liabilities decrease 
D)  Stockholders' equity increases and decreases by the same amount

Question 11

For each transaction select the letter of the type of adjustment that would be required
-Revenue is earned during the current period, although customers had paid in a previous period

Accepted Answer

A) Deferred expense 
B) Deferred revenue 
C) Accrued liability 
D) Accrued asset 
A) Deferred expense 
B) Deferred revenue 
C) Accrued liability 
D) Accrued asset

Question 12

An entry that includes the Cash account is probably an adjustment.

Accepted Answer

A) True 
 B)False

Question 13

Explain the purpose of a work sheet.

Accepted Answer

A work sheet is not a financial statemen

Question 14

Match the following choices to the listed situation.
-Rent is owed by a tenant but not yet collected

Accepted Answer

A) a deferred expense 
B) a deferred revenue 
C) an accrued liability 
D) an accrued asset 
A) a deferred expense 
B) a deferred revenue 
C) an accrued liability 
D) an accrued asset

Question 15

--------- is a rise in the general level of prices in the economy and results in a decrease in purchasing power.

Accepted Answer

Inflation
For each of the foll

Question 16

Match the following choices to the listed situation.
-Cash was collected from customers for rental of tents for next year

Accepted Answer

A) a deferred expense 
B) a deferred revenue 
C) an accrued liability 
D) an accrued asset 
A) a deferred expense 
B) a deferred revenue 
C) an accrued liability 
D) an accrued asset

Question 17

The---------of accounting necessitates a number of adjustments at the end of an accounting period.

Accepted Answer

The answer of The---------of accounting necessitates a number of adjustments...

Question 18

Closing entries serve two important purposes: 1 to return the balances in all temporary or nominal accounts to zero to start the next accounting period and 2 to transfer the net income or net loss and the dividends of the period to the Retained Earnings account.

Accepted Answer

A) True 
 B)False

Question 19

Which one of the following is an example of an accrued liability?

Accepted Answer

A)  Wages have been earned by employees, but have not been paid at the end of the period 
B)  Equipment that will benefit several periods has been purchased 
C)  An insurance policy that expires in a future period has been acquired 
D)  Supplies are purchased and used over several months 
A)  Wages have been earned by employees, but have not been paid at the end of the period 
B)  Equipment that will benefit several periods has been purchased 
C)  An insurance policy that expires in a future period has been acquired 
D)  Supplies are purchased and used over several months

Question 20

When is revenue from the sale of merchandise normally recognized?

Accepted Answer

A)  On the date the sale is made. 
B)  When the customer pays for the merchandise. 
C)  Either on the date on which the sale occurs, or the date on which the customer pays. 
D)  When the merchandise is sold, if sold for cash, or when payment is received, if sold on credit. 
A)  On the date the sale is made. 
B)  When the customer pays for the merchandise. 
C)  Either on the date on which the sale occurs, or the date on which the customer pays. 
D)  When the merchandise is sold, if sold for cash, or when payment is received, if sold on credit.

Which one of the following adjustments will increase assets?

The justification for the accrual basis of accounting lies in the needs of financial statement users for periodic information on the financial position and the profitability of the entity.

For each transaction select the letter of the type of adjustment that would be required. -The depreciation on office equipment used during the current year is recorded

Norys Corp. received an 8-month, 9% note for $100,000 from its agent on October 1, 2014. The note is due on May 30, 2015. If Norys' accounting period ends on December 31, 2014, how much interest revenue should Norys recognize during 2014 and 2015?

Accountants often prepare work sheets at the end of an accounting period in place of financial statements.

Which of the following transactions involves an accrued asset?

For each transaction select the letter of the type of adjustment that would be required -Interest earned on notes receivable, but not yet received is recorded

What happens to the accounting equation when the adjustment that recognizes accrued interest revenue is recorded?

For each transaction select the letter of the type of adjustment that would be required -Revenue is earned during the current period, although customers had paid in a previous period

An entry that includes the Cash account is probably an adjustment.

Explain the purpose of a work sheet.

Match the following choices to the listed situation. -Rent is owed by a tenant but not yet collected

--------- is a rise in the general level of prices in the economy and results in a decrease in purchasing power.

Match the following choices to the listed situation. -Cash was collected from customers for rental of tents for next year

The---------of accounting necessitates a number of adjustments at the end of an accounting period.

Closing entries serve two important purposes: 1 to return the balances in all temporary or nominal accounts to zero to start the next accounting period and 2 to transfer the net income or net loss and the dividends of the period to the Retained Earnings account.

Which one of the following is an example of an accrued liability?

When is revenue from the sale of merchandise normally recognized?

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

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Exam 4: Income Measurement and Accrual Accounting

Which one of the following adjustments will increase assets?

The justification for the accrual basis of accounting lies in the needs of financial statement users for periodic information on the financial position and the profitability of the entity.

For each transaction select the letter of the type of adjustment that would be required. -The depreciation on office equipment used during the current year is recorded

Norys Corp. received an 8-month, 9% note for $100,000 from its agent on October 1, 2014. The note is due on May 30, 2015. If Norys' accounting period ends on December 31, 2014, how much interest revenue should Norys recognize during 2014 and 2015?

Accountants often prepare work sheets at the end of an accounting period in place of financial statements.

Which of the following transactions involves an accrued asset?

For each transaction select the letter of the type of adjustment that would be required -Interest earned on notes receivable, but not yet received is recorded

What happens to the accounting equation when the adjustment that recognizes accrued interest revenue is recorded?

For each transaction select the letter of the type of adjustment that would be required -Revenue is earned during the current period, although customers had paid in a previous period

An entry that includes the Cash account is probably an adjustment.

Explain the purpose of a work sheet.

Match the following choices to the listed situation. -Rent is owed by a tenant but not yet collected

--------- is a rise in the general level of prices in the economy and results in a decrease in purchasing power.

Match the following choices to the listed situation. -Cash was collected from customers for rental of tents for next year

The---------of accounting necessitates a number of adjustments at the end of an accounting period.

Closing entries serve two important purposes: 1 to return the balances in all temporary or nominal accounts to zero to start the next accounting period and 2 to transfer the net income or net loss and the dividends of the period to the Retained Earnings account.

Which one of the following is an example of an accrued liability?

When is revenue from the sale of merchandise normally recognized?

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