Question 1

What is the revenue recognition principle?

Accepted Answer

The revenue recognition principle requires that revenues are recognized when they are realized or realizable and earned. Normally, this is when a product or service is delivered to the customer.

Question 2

A law firm purchased supplies at a cost of $20,000 during 2013. At January 1, 2013, the beginning balance in the supplies account was $1,300. For 2013, supplies expense was $11,200. How much "Supplies" are on hand as of December 31, 2013?

Accepted Answer

A) $10,100 
B) $10,400 
C) $20,000 
D) $21,300 
A) $10,100 
B) $10,400 
C) $20,000 
D) $21,300 A

Question 3

From the list of accounts, determine whether the account is a temporary or permanent account. (Choices may be used more than once.)
a.temporary account
b.permanent account
-Rent Revenue

Accepted Answer

A

Question 4

A calendar year company paid $24,000 on October 1, 2012 to purchase two years of insurance coverage for its retail shop. The prepayment was initially recorded as an asset.

Accepted Answer

The answer of A calendar year company paid $24,000 on...

Question 5

From the list of accounts, determine whether the account is a temporary or permanent account. (Choices may be used more than once.)
a.temporary account
b.permanent account
-Salaries Payable

Accepted Answer

The answer of From the list of accounts, determine whether...

Question 6

Match the most probable matching method to the costs listed. (Choices may be used more than once.)
a.Directly match a specific revenue
b.Indirectly match with the period during which it will provide revenue
c.Not recognized in this period
-Cost of two-year lease

Accepted Answer

The answer of Match the most probable matching method to...

Question 7

-Refer to Cabana Club. Identify three specific expenses that might be accrued as a result of adjusting journal entries. Show what these entries would look like in journal format. Ignore amounts.

Accepted Answer

The accounts are: Payroll and other empl

Question 8

What effect does "recognizing accrued Interest Revenue at the end of the accounting period" have on the accounting equation?

Accepted Answer

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

Question 9

Failure to record amounts earned for services provided to customers but not yet paid results in which of the following?

Accepted Answer

A) Net income being overstated. 
B) No effect on total assets. 
C) Stockholders' equity being overstated. 
D) Total assets being understated. 
A) Net income being overstated. 
B) No effect on total assets. 
C) Stockholders' equity being overstated. 
D) Total assets being understated.

Question 10

A ____________________ results when cash is paid before the related amount is reported on the income statement.

Accepted Answer

The answer of A ____________________ results when cash is paid...

Question 11

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 received...

Question 12

Refer to C2IT Corporation. Answer the following:
Required:

Accepted Answer

The answer of Refer to C2IT Corporation. Answer the following:
Required:
...

Question 13

The preparation of _______________ is necessary to get the account balances properly stated and up to date.

Accepted Answer

adjusting

Question 14

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

Accepted Answer

The answer of Select the correct revenue recognition principle for...

Question 15

At the end of 2013, the unadjusted accounting records contain the following selected accounts and balances:

Accepted Answer

The answer of At the end of 2013, the unadjusted...

Question 16

The accounting records of Cary's Magic Shows reflect the following account balances at January 1, 2013:
   During 2013, the following transactions occurred:
   Required:

Accepted Answer

@#IMG-DLM&_TB2047_00

Question 17

The financial statements are prepared after

Accepted Answer

A) business transactions are recorded. 
B) adjustments are recorded. 
C) the accounts are closed. 
D) the adjusted trial balance is prepared. 
A) business transactions are recorded. 
B) adjustments are recorded. 
C) the accounts are closed. 
D) the adjusted trial balance is prepared.

Question 18

Every adjustment involves at least one income statement and one balance sheet account.

Accepted Answer

A) True 
 B)False

Question 19

The university satellite office operates five days per week with a daily payroll of $5,000. Employees are paid every Saturday for the workweek just completed (Monday through Friday). The last day of the month is Wednesday, October 31. What is the effect of the correct adjustment at October 31?

Accepted Answer

A) Increases Stockholders' equity and Wages Payable by $15,000. 
B) Increases Wages Payable and decreases Cash by $10,000. 
C) Decreases Stockholders' equity and increases Wages Payable by 15,000. 
D) Increases Wages Payable and increases Wages Expense by $25,000. 
A) Increases Stockholders' equity and Wages Payable by $15,000. 
B) Increases Wages Payable and decreases Cash by $10,000. 
C) Decreases Stockholders' equity and increases Wages Payable by 15,000. 
D) Increases Wages Payable and increases Wages Expense by $25,000.

Question 20

An ____________________ revenue must be recorded when revenue is earned in advance of receiving cash.

Accepted Answer

The answer of An ____________________ revenue must be recorded when...

What is the revenue recognition principle?

A law firm purchased supplies at a cost of $20,000 during 2013. At January 1, 2013, the beginning balance in the supplies account was $1,300. For 2013, supplies expense was $11,200. How much "Supplies" are on hand as of December 31, 2013?

From the list of accounts, determine whether the account is a temporary or permanent account. (Choices may be used more than once.) a.temporary account b.permanent account -Rent Revenue

A calendar year company paid $24,000 on October 1, 2012 to purchase two years of insurance coverage for its retail shop. The prepayment was initially recorded as an asset.

From the list of accounts, determine whether the account is a temporary or permanent account. (Choices may be used more than once.) a.temporary account b.permanent account -Salaries Payable

Match the most probable matching method to the costs listed. (Choices may be used more than once.) a.Directly match a specific revenue b.Indirectly match with the period during which it will provide revenue c.Not recognized in this period -Cost of two-year lease

-Refer to Cabana Club. Identify three specific expenses that might be accrued as a result of adjusting journal entries. Show what these entries would look like in journal format. Ignore amounts.

What effect does "recognizing accrued Interest Revenue at the end of the accounting period" have on the accounting equation?

Failure to record amounts earned for services provided to customers but not yet paid results in which of the following?

A ____________________ results when cash is paid before the related amount is reported on the income statement.

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

Refer to C2IT Corporation. Answer the following: Required:

The preparation of _______________ is necessary to get the account balances properly stated and up to date.

At the end of 2013, the unadjusted accounting records contain the following selected accounts and balances:

The accounting records of Cary's Magic Shows reflect the following account balances at January 1, 2013: During 2013, the following transactions occurred: Required:

The financial statements are prepared after

Every adjustment involves at least one income statement and one balance sheet account.

The university satellite office operates five days per week with a daily payroll of $5,000. Employees are paid every Saturday for the workweek just completed (Monday through Friday). The last day of the month is Wednesday, October 31. What is the effect of the correct adjustment at October 31?

An ____________________ revenue must be recorded when revenue is earned in advance of receiving cash.

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 Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

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Exam 3: Accrual Accounting

What is the revenue recognition principle?

A law firm purchased supplies at a cost of $20,000 during 2013. At January 1, 2013, the beginning balance in the supplies account was $1,300. For 2013, supplies expense was $11,200. How much "Supplies" are on hand as of December 31, 2013?

From the list of accounts, determine whether the account is a temporary or permanent account. (Choices may be used more than once.) a.temporary account b.permanent account -Rent Revenue

A calendar year company paid $24,000 on October 1, 2012 to purchase two years of insurance coverage for its retail shop. The prepayment was initially recorded as an asset.

From the list of accounts, determine whether the account is a temporary or permanent account. (Choices may be used more than once.) a.temporary account b.permanent account -Salaries Payable

Match the most probable matching method to the costs listed. (Choices may be used more than once.) a.Directly match a specific revenue b.Indirectly match with the period during which it will provide revenue c.Not recognized in this period -Cost of two-year lease

-Refer to Cabana Club. Identify three specific expenses that might be accrued as a result of adjusting journal entries. Show what these entries would look like in journal format. Ignore amounts.

What effect does "recognizing accrued Interest Revenue at the end of the accounting period" have on the accounting equation?

Failure to record amounts earned for services provided to customers but not yet paid results in which of the following?

A ____________________ results when cash is paid before the related amount is reported on the income statement.

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

Refer to C2IT Corporation. Answer the following: Required:

The preparation of _______________ is necessary to get the account balances properly stated and up to date.

At the end of 2013, the unadjusted accounting records contain the following selected accounts and balances:

The accounting records of Cary's Magic Shows reflect the following account balances at January 1, 2013: During 2013, the following transactions occurred: Required:

The financial statements are prepared after

Every adjustment involves at least one income statement and one balance sheet account.

The university satellite office operates five days per week with a daily payroll of $5,000. Employees are paid every Saturday for the workweek just completed (Monday through Friday). The last day of the month is Wednesday, October 31. What is the effect of the correct adjustment at October 31?

An ____________________ revenue must be recorded when revenue is earned in advance of receiving cash.

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 Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters