Given the following adjusted tabular summary amounts: $\begin{array} { l r } \text { Cash } & \$ 831 \\ \text { Accounts receivable } & 1,049 \\ \text { Inventory } & 1,562 \\ \text { Prepaid rent } & 43 \\ \text { Equipment } & 150 \\ \text { Accumulated depreciation-equipment } & 26 \\ \text { Accounts payable } & 41 \\ \text { Unearned service revenue } & 61 \\ \text { Common stock } & 103 \\ \text { Retained earnings } & 3,305 \\ \text { Service revenue } & 184 \\ \text { Interest revenue } & 28 \\ \text { Salaries and wages expense } & 80 \\ \text { Travel expense } & 33 \end{array}$ Net income for the year is:

A) $99. B) $184. C) $212. D) $298. A) $99. B) $184. C) $212. D) $298.

Given the following adjusted tabular summary amounts: $\begin{array} { l r } \text { Cash } & \$ 831 \\ \text { Accounts receivable } & 1,049 \\ \text { Inventory } & 1,562 \\ \text { Prepaid rent } & 43 \\ \text { Equipment } & 150 \\ \text { Accumulated depreciation-equipment } & 26 \\ \text { Accounts payable } & 41 \\ \text { Unearned service revenue } & 61 \\ \text { Common stock } & 103 \\ \text { Retained earnings } & 3,305 \\ \text { Service revenue } & 184 \\ \text { Interest revenue } & 28 \\ \text { Salaries and wages expense } & 80 \\ \text { Travel expense } & 33 \end{array}$ The ending balance of retained earnings on the retained earnings statement will be

A) $3306. B) $3220. C) $3490. D) $3404. A) $3306. B) $3220. C) $3490. D) $3404.

La More Company had the following transactions during 2022. F1F1F1S1F1F1F10Sales of $9000 on account F1F1F1S1F1F1F10Collected $4000 for services to be performed in 2023 F1F1F1S1F1F1F10Paid $2650 cash in salaries F1F1F1S1F1F1F10Purchased airline tickets for $500 in December for a trip to take place in 2023 What is La More's 2022 net income using cash basis accounting?

A) $10350 B) $1350 C) $9850 D) $850 A) $10350 B) $1350 C) $9850 D) $850

Given the following adjusted tabular summary amounts: $\begin{array} { l r } \text { Cash } & \$ 1,662 \\ \text { Accounts receivable } & 2,098 \\ \text { Inventory } & 3,124 \\ \text { Prepaid rent } & 86 \\ \text { Equipment } & 300 \\ \text { Accumulated depreciation-equipment } & 52 \\ \text { Accounts payable } & 82 \\ \text { Unearned service revenue } & 172 \\ \text { Common stock } & 206 \\ \text { Retained earnings } & 6,610 \\ \text { Service revenue } & 318 \\ \text { Interest revenue } & 56 \\ \text { Salaries and wages expense } & 160 \\ \text { Travel expense } & 66 \end{array}$ What is the amount of the ending retained earnings on the retained earnings statement?

A) $6610 B) $6984 C) $6384 D) $6758 A) $6610 B) $6984 C) $6384 D) $6758

Exam 4: Accrual Accounting Concepts

On July 1 the Fisher Shoe Store paid $24000 to Acme Realty for 6 months rent beginning July 1.Prepaid Rent was increased for the full amount.If financial statements are prepared on July 31 the adjustment to be made by the Fisher Shoe Store is:

(Multiple Choice)

4.8/5

(79)

Question 41

Accrued revenues are revenues that have been recognized but not yet recorded.

(True/False)

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(75)

Question 42

Unearned revenue is classified as a(n):

(Multiple Choice)

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Question 43

As prepaid expenses expire with the passage of time the correct adjustment will be a(n):

(Multiple Choice)

4.9/5

(80)

Question 44

An asset-expense relationship exists with:

(Multiple Choice)

4.7/5

(69)

Question 45

Given the following adjusted tabular summary amounts: Cash \ 831 Accounts receivable 1,049 Inventory 1,562 Prepaid rent 43 Equipment 150 Accumulated depreciation-equipment 26 Accounts payable 41 Unearned service revenue 61 Common stock 103 Retained earnings 3,305 Service revenue 184 Interest revenue 28 Salaries and wages expense 80 Travel expense 33 Net income for the year is:

(Multiple Choice)

4.8/5

(80)

Question 46

On January 1 2021 Leardon Inc.purchased equipment for $25000.The company is depreciating the equipment at the rate of $1000 per month.At January 31 2022 the balance in Accumulated Depreciation is:

(Multiple Choice)

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(79)

Question 47

The primary difference between prepaid and accrued expenses is that prepaid expenses have:

(Multiple Choice)

4.8/5

(81)

Question 48

The primary source used in the preparation of the financial statements is the:

(Multiple Choice)

4.8/5

(65)

Question 49

Goods purchased for future use in the business such as supplies are called:

(Multiple Choice)

4.8/5

(82)

Question 50

Under the cash basis of accounting an amount received from a customer in advance of providing the services would be reported as a(n):

(Multiple Choice)

4.8/5

(79)

Question 51

A small company may be able to justify using a cash basis of accounting if they have:

(Multiple Choice)

4.9/5

(69)

Question 52

If prepaid costs are initially recorded as an asset no adjustment will be required in the future.

(True/False)

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(93)

Question 53

If Supplies has a $180 unadjusted balance at December 31 2022 and supplies on hand are $40 the year-end adjustment would contain a(n):

(Multiple Choice)

4.7/5

(74)

Question 54

Given the following adjusted tabular summary amounts: Cash \ 831 Accounts receivable 1,049 Inventory 1,562 Prepaid rent 43 Equipment 150 Accumulated depreciation-equipment 26 Accounts payable 41 Unearned service revenue 61 Common stock 103 Retained earnings 3,305 Service revenue 184 Interest revenue 28 Salaries and wages expense 80 Travel expense 33 The ending balance of retained earnings on the retained earnings statement will be

(Multiple Choice)

4.7/5

(77)

Question 55

La More Company had the following transactions during 2022. Sales of $9000 on account Collected $4000 for services to be performed in 2023 Paid $2650 cash in salaries Purchased airline tickets for $500 in December for a trip to take place in 2023 What is La More's 2022 net income using cash basis accounting?

(Multiple Choice)

4.8/5

(66)

Question 56

Given the following adjusted tabular summary amounts: Cash \ 1,662 Accounts receivable 2,098 Inventory 3,124 Prepaid rent 86 Equipment 300 Accumulated depreciation-equipment 52 Accounts payable 82 Unearned service revenue 172 Common stock 206 Retained earnings 6,610 Service revenue 318 Interest revenue 56 Salaries and wages expense 160 Travel expense 66 What is the amount of the ending retained earnings on the retained earnings statement?

(Multiple Choice)

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(88)

Question 57

Supplies are recorded as assets when purchased.Therefore the decrease to the supplies account in the adjustment is for the amount of supplies:

(Multiple Choice)

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Question 58

Kingman Consulting uses the cash basis of accounting and a fiscal year ending December 31.Beginning on September 1 2021 Kingman performs services for Renfro International at a rate of $5000 per month.On February 12 2022 Renfro pays Kingman $25000 in full for all services rendered from September 1 2021 to January 31 2022.Kingman understated accrual basis revenues by ________ on its year-end 2021 financial statement.

(Multiple Choice)

4.9/5

(70)

Question 59

At March 1 2022 Candy Inc.had supplies on hand of $2000.During the month Candy purchased supplies of $2900 and used supplies of $2800.The March 31 balance sheet should report what balance in the supplies account?

(Multiple Choice)

4.8/5

(93)

Question 60

On July 1 the Fisher Shoe Store paid $24000 to Acme Realty for 6 months rent beginning July 1.Prepaid Rent was increased for the full amount.If financial statements are prepared on July 31 the adjustment to be made by the Fisher Shoe Store is:

Accrued revenues are revenues that have been recognized but not yet recorded.

Unearned revenue is classified as a(n):

As prepaid expenses expire with the passage of time the correct adjustment will be a(n):

An asset-expense relationship exists with:

On January 1 2021 Leardon Inc.purchased equipment for $25000.The company is depreciating the equipment at the rate of $1000 per month.At January 31 2022 the balance in Accumulated Depreciation is:

The primary difference between prepaid and accrued expenses is that prepaid expenses have:

The primary source used in the preparation of the financial statements is the:

Goods purchased for future use in the business such as supplies are called:

Under the cash basis of accounting an amount received from a customer in advance of providing the services would be reported as a(n):

A small company may be able to justify using a cash basis of accounting if they have:

If prepaid costs are initially recorded as an asset no adjustment will be required in the future.

If Supplies has a $180 unadjusted balance at December 31 2022 and supplies on hand are $40 the year-end adjustment would contain a(n):

Supplies are recorded as assets when purchased.Therefore the decrease to the supplies account in the adjustment is for the amount of supplies:

At March 1 2022 Candy Inc.had supplies on hand of $2000.During the month Candy purchased supplies of $2900 and used supplies of $2800.The March 31 balance sheet should report what balance in the supplies account?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

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