Exam 3: Accrual Accounting

Cash Express had no supplies on January 1 but purchased $2,581 in supplies during the year. At December 31, supplies on hand are $1,492. What amount for supplies will be reported on the firm's balance sheet?

Match each statement to the item listed below a.Accrual basis accounting f.Depreciation b.Adjusted trial balance g.Matching principle c.Adjusting entries h.Revenue recognition principle d.Cash basis accounting i.Time period assumption e.Contra accounts j.Worksheet -A listing of all the account balances immediately before preparation of the financial statements

____________________ are journal entries made at the end of the accounting period to return the balance in all temporary accounts to zero.

The adjustment necessary to record the expense and the associated increase in the company's liabilities is ____________________.

Carver Memorial Gardens purchased supplies for $14,500 during the year. At January 1, supplies on hand were $1,000. At December 31, supplies on hand are $3,500. Determine the amount of supplies expense for the year.

The ____________________ principle determines when revenue is recorded and reported.

Which of the following adjusting entries involves the cash account?

What happens to the accounting equation when the adjustment for depreciation expense for the accounting period is recorded?

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

The following unadjusted amounts were taken from the accounting records of an insurance company at December 31, 2013:

The supplies account has a balance of $1,000 on January 1. During January, the company purchased $25,000 of supplies on account and the liability was appropriately recorded. A count of supplies at the end of January indicates a balance of $3,000. Which one of the following is a correct amount to be reported on the company's financial statements for the month ending January 31?

For each transaction select the type of adjustment that would be required. (Choices may be used more than once.) a.Deferred (prepaid)expense b.Deferred (unearned)revenue c.Accrued expense d.Accrued revenue -Amounts are earned, but not yet received from customers

The ____________ basis of accounting recognizes revenue when it is received regardless of when the revenue is earned.

Can We Help?, a local walk-in medical practice, had the following account balances at December 31, 2012: During 2013, the following transactions occurred: Required:

"You Decide" Essay You are the CFO for Cabbage Patch Toys. The Board of Directors is meeting this afternoon. While reviewing your company's financial statements just minutes before the meeting you notice that no depreciation expense has been reported.A)Describe to the board the impact that omitting this adjustment has had on your financial statements. B)The Board has asked you whether this mistake would impact their plan to declare a cash dividend during the meeting. Respond.

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 -Unearned Revenue