Question 1

For each transaction select the letter of the type of adjustment that would be required.
-Amounts earned, not received from customers are 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 2

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 3

What effect does "recognizing an accrued liability for utilities at the end of the accounting period" have on the accounting equation?

Accepted Answer

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

Question 4

Accumulated depreciation is increased when depreciation is recognized.

Accepted Answer

A) True 
 B)False

Question 5

Sally's Choice sells season memberships for $200 each.During January of 2016, 60 season memberships were sold.As of March 31, 2016, only $3,000 of season membership fees had been collected from customers.The season runs for 4 months starting May 15, 2016.Which one of the following is an amount reported on the financial statements for the period ending March 31, 2016?

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 6

The accounting profession is currently experimenting with financial statements adjusted for the changing value of the dollar since inflation is increasing.

Accepted Answer

A) True 
 B)False

Question 7

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 8

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

Accepted Answer

A) True 
 B)False

Question 9

From the list of accounts below, determine whether the account would be a nominal account or a real account.
-Depreciation Expense

Accepted Answer

A)  nominal account 
B)  real account 
A)  nominal account 
B)  real account

Question 10

The success of accounting as a form of communication depends on two concepts, ____________________ and ____________________.

Accepted Answer

recognitio

Question 11

Match the most probable matching method to the costs listed below.
-Warehouse used for storing inventory goods

Accepted Answer

A) Directly match a specific revenue. 
B) Indirectly match with the period during which it will provide revenue. 
C) Immediately recognize because no future benefits are expected. 
A) Directly match a specific revenue. 
B) Indirectly match with the period during which it will provide revenue. 
C) Immediately recognize because no future benefits are expected.

Question 12

Jenning Co. adjusts its books each month but closes its books at the end of the year. The trial balance at July 31 before adjustments is as follows:
$\begin{array} { l r r } & \text { Debit } & \text { Credit } \ \text { Cash } & \$ 12,920 & \ \text { Accounts Receivable } & 9,620 & \ \text { Supplies } & 1,400 & \ \text { Prepaid Insurance } & 3,120 & \ \text { Equipment } & 26,000 & \  
\text { Accumulated Depreciation-Equipment } && \$ 10,400 \
\text { Unearned Service Revenue } && 6,500 \
\text { Capital Stock } && 7,190 \
\text { Retained Earnings } && 23,500\
\text { Dividends } & 1,560 & \
\text { Service Revenue } & & 16,510 \
\text { Wages and Salaries Expense } & 7,800 & \
\text { Utilities Expense } & 380 & \
\text { Rent Expense } & 1,300 \
&\$ 64.100& \$ 64.100\
\end{array}$
-Refer to the trial balance of Jenning Co. On July 1, Tracy paid four months in advance for insurance.Which of the following is included in the adjusting entry at July 31?

Accepted Answer

A)  A debit to Prepaid Insurance for $780 
B)  A credit to Prepaid Insurance for $2,340 
C)  A debit to Prepaid Insurance for $2,340 
D)  A credit to Prepaid Insurance for $780 
A)  A debit to Prepaid Insurance for $780 
B)  A credit to Prepaid Insurance for $2,340 
C)  A debit to Prepaid Insurance for $2,340 
D)  A credit to Prepaid Insurance for $780

Question 13

The unit of measure in Japan is the U.S.dollar.

Accepted Answer

A) True 
 B)False

Question 14

Jogg Corp.plant operates five days per week with a daily payroll of $50,000.Employees are paid every Tuesday for the prior week's work (Monday through Friday).The last day of the month is Tuesday, April 30.What effect does the accrual at April 30 have on Pub's net income?

Accepted Answer

A)  Increase by $250,000 
B)  Decrease by $150,000 
C)  Decrease by $100,000 
D)  Increase by $150,000 
A)  Increase by $250,000 
B)  Decrease by $150,000 
C)  Decrease by $100,000 
D)  Increase by $150,000

Question 15

For each transaction select the letter of the type of adjustment that would be required.
-Interest is incurred on money borrowed from the bank, but not yet paid

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 16

Revenue is always earned continuously over time.

Accepted Answer

A) True 
 B)False

Question 17

____________________ is the name given to balance sheet accounts because they are permanent in nature.

Accepted Answer

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

Question 18

Emory Co.operates five days per week with a daily payroll of $4,000.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 effect of the correct adjustment at March 31?

Accepted Answer

A)  Increases stockholders' equity and Wages Payable by $8,000 
B)  Increases Wages Payable and decreases Cash by $12,000 
C)  Decreases stockholders' equity and increases Wages Payable by $12,000 
D)  Increases Wages Payable and increases Wages Expense by $8,000 
A)  Increases stockholders' equity and Wages Payable by $8,000 
B)  Increases Wages Payable and decreases Cash by $12,000 
C)  Decreases stockholders' equity and increases Wages Payable by $12,000 
D)  Increases Wages Payable and increases Wages Expense by $8,000

Question 19

Adjusting entries are recorded at the end of each accounting period so that net income is accurately reflected in the financial statements for the period.

Accepted Answer

A) True 
 B)False

Question 20

For each transaction select the letter of the type of adjustment that would be required.
-The cost of commissions to salesmen that has been earned, but not paid at the end of the accounting period 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

For each transaction select the letter of the type of adjustment that would be required. -Amounts earned, not received from customers are recorded

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?

What effect does "recognizing an accrued liability for utilities at the end of the accounting period" have on the accounting equation?

Accumulated depreciation is increased when depreciation is recognized.

The accounting profession is currently experimenting with financial statements adjusted for the changing value of the dollar since inflation is increasing.

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

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

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Depreciation Expense

The success of accounting as a form of communication depends on two concepts, and .

Match the most probable matching method to the costs listed below. -Warehouse used for storing inventory goods

The unit of measure in Japan is the U.S.dollar.

Jogg Corp.plant operates five days per week with a daily payroll of $50,000.Employees are paid every Tuesday for the prior week's work (Monday through Friday).The last day of the month is Tuesday, April 30.What effect does the accrual at April 30 have on Pub's net income?

For each transaction select the letter of the type of adjustment that would be required. -Interest is incurred on money borrowed from the bank, but not yet paid

Revenue is always earned continuously over time.

____________________ is the name given to balance sheet accounts because they are permanent in nature.

Emory Co.operates five days per week with a daily payroll of $4,000.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 effect of the correct adjustment at March 31?

Adjusting entries are recorded at the end of each accounting period so that net income is accurately reflected in the financial statements for the period.

For each transaction select the letter of the type of adjustment that would be required. -The cost of commissions to salesmen that has been earned, but not paid at the end of the accounting period is recorded

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 True Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters

Exam 4: Income Measurement and Accrual Accounting

For each transaction select the letter of the type of adjustment that would be required. -Amounts earned, not received from customers are recorded

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?

What effect does "recognizing an accrued liability for utilities at the end of the accounting period" have on the accounting equation?

Accumulated depreciation is increased when depreciation is recognized.

The accounting profession is currently experimenting with financial statements adjusted for the changing value of the dollar since inflation is increasing.

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

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

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Depreciation Expense

The success of accounting as a form of communication depends on two concepts, ____________________ and ____________________.

Match the most probable matching method to the costs listed below. -Warehouse used for storing inventory goods

The unit of measure in Japan is the U.S.dollar.

Jogg Corp.plant operates five days per week with a daily payroll of $50,000.Employees are paid every Tuesday for the prior week's work (Monday through Friday).The last day of the month is Tuesday, April 30.What effect does the accrual at April 30 have on Pub's net income?

For each transaction select the letter of the type of adjustment that would be required. -Interest is incurred on money borrowed from the bank, but not yet paid

Revenue is always earned continuously over time.

____________________ is the name given to balance sheet accounts because they are permanent in nature.

Emory Co.operates five days per week with a daily payroll of $4,000.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 effect of the correct adjustment at March 31?

Adjusting entries are recorded at the end of each accounting period so that net income is accurately reflected in the financial statements for the period.

For each transaction select the letter of the type of adjustment that would be required. -The cost of commissions to salesmen that has been earned, but not paid at the end of the accounting period is recorded

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 True Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters

The success of accounting as a form of communication depends on two concepts, and .