Question 1

Assets become expenses when?

Accepted Answer

A) Purchased for cash or on credit. 
B) Asset is delivered. 
C) They are paid for in cash. 
D) Their economic benefits expire. 
A) Purchased for cash or on credit. 
B) Asset is delivered. 
C) They are paid for in cash. 
D) Their economic benefits expire.

Question 2

-Refer to California Condos. On January 1, the balance of Unearned Rent Revenue was $0. The company collected cash from tenants of its apartment building totaling $600,000 during 2013. How much should be reported as unearned rent revenue as of December 31, 2013?

Accepted Answer

$260,000
$600,000 (C

Question 3

Failure to record the earned portion of unearned revenue would result in which of the following?

Accepted Answer

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

Question 4

The first step in the accounting cycle is to ________________ transactions.

Accepted Answer

The answer of The first step in the accounting cycle...

Question 5

Certified Electronics operates five days per week with a daily payroll of $40,000. Employees are paid every Saturday for the work week just completed (Monday through Friday). The last day of the month is Wednesday, May 31. The correct adjusting entry at May 31 is

Accepted Answer

A) Wages Expense 40,000 Wages Payable 40,000 
B) Wages Payable 40,000 Cash 40,000 
C) Wages Expense 120,000 Cash 120,000 
D) Wages Expense 120,000 Wages Payable 120,000 
A) Wages Expense 40,000 Wages Payable 40,000 
B) Wages Payable 40,000 Cash 40,000 
C) Wages Expense 120,000 Cash 120,000 
D) Wages Expense 120,000 Wages Payable 120,000

Question 6

Which of the following does not occur during the closing process?

Accepted Answer

A) Journal entries are made to return the balance in all nominal accounts to zero. 
B) Journal entries are made to transfer the net income or loss to retained earnings. 
C) Journal entries are made to return the balance in all real accounts to zero. 
D) Journal entries are made to transfer the dividends to retained earnings. 
A) Journal entries are made to return the balance in all nominal accounts to zero. 
B) Journal entries are made to transfer the net income or loss to retained earnings. 
C) Journal entries are made to return the balance in all real accounts to zero. 
D) Journal entries are made to transfer the dividends to retained earnings.

Question 7

The following unadjusted account balance was taken from the accounting records at December 31, 2013:

Accepted Answer

The answer of The following unadjusted account balance was taken...

Question 8

The Cash account is never part of an adjusting entry.

Accepted Answer

A) True 
 B)False

Question 9

The balance in the account, Rent Collected in Advance, is reported as a liability on the balance sheet of the landlord.

Accepted Answer

A) True 
 B)False

Question 10

____________________ is the name given to balance sheet accounts because their balances are carried forward from the current accounting period to future accounting periods.

Accepted Answer

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

Question 11

The amount of interest accrued is added to the note payable account and reported in the liabilities section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 12

During the closing process, revenues, expenses, and dividends must be closed to the Income Summary account.

Accepted Answer

A) True 
 B)False

Question 13

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
-The cost of salaries earned by employees, but not paid at the end of the accounting period, is recorded

Accepted Answer

The answer of For each transaction select the type of...

Question 14

-Refer to Cabana Club. What impact will an adjustment to the Income Tax Expense account on December 31, 2013 have on the accounting equation?

Accepted Answer

The adjustment would cause a d

Question 15

A particular company had $2,400 of supplies on hand at January 1. During the year, supplies with a cost of $4,000 were purchased. At December 31, the actual supplies on hand amounted to $2,000. After the adjustments are recorded and posted at December 31, what are the ending balances in the Supplies and Supplies Expense accounts? Supplies Supplies Expense

Accepted Answer

A) $4,400 $2,000 
B) $2,000 $4,400 
C) $2,400 $4,000 
D) $4,000 $2,400 
A) $4,400 $2,000 
B) $2,000 $4,400 
C) $2,400 $4,000 
D) $4,000 $2,400

Question 16

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.)
a.a deferred (prepaid)expense
b.a deferred (unearned)revenue
c.an accrued expense
d.an accrued revenue
-Two years insurance premium was paid in advance

Accepted Answer

The answer of Match the following types of adjusting entries...

Question 17

-Refer to California Condos. On January 1, the Utilities Payable Account had a zero balance. The company paid cash for utilities totaling $50,000 during 2013. How much should be reported as utilities expense for the year ended December 31, 2013?

Accepted Answer

$62,000
$50,000 (Cas

Question 18

A company forgot to record four adjustments during 2013. Which one of the following omissions of adjustments will understate net income?

Accepted Answer

A) Sales made during the last week of the period are not recorded. 
B) Interest on monies borrowed has not yet been recorded. 
C) Prepaid insurance is not reduced for the portion of the policy that has expired during the period. 
D) Income taxes owed but not yet paid are ignored. 
A) Sales made during the last week of the period are not recorded. 
B) Interest on monies borrowed has not yet been recorded. 
C) Prepaid insurance is not reduced for the portion of the policy that has expired during the period. 
D) Income taxes owed but not yet paid are ignored.

Question 19

What happens to the accounting equation when the adjustment is recorded to recognize earned revenue previously recorded as unearned revenue?

Accepted Answer

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

Question 20

Which of the following entries properly closes a temporary account?

Accepted Answer

A) Income Summary 20,000 Service Revenue 20,000 
B) Dividends 200 Retained Earnings 200 
C) Accumulated Depreciation 1,600 Income Summary 1,600 
D) Income Summary 400 Salaries Expense 400 
A) Income Summary 20,000 Service Revenue 20,000 
B) Dividends 200 Retained Earnings 200 
C) Accumulated Depreciation 1,600 Income Summary 1,600 
D) Income Summary 400 Salaries Expense 400

Assets become expenses when?

-Refer to California Condos. On January 1, the balance of Unearned Rent Revenue was $0. The company collected cash from tenants of its apartment building totaling $600,000 during 2013. How much should be reported as unearned rent revenue as of December 31, 2013?

Failure to record the earned portion of unearned revenue would result in which of the following?

The first step in the accounting cycle is to ________________ transactions.

Certified Electronics operates five days per week with a daily payroll of $40,000. Employees are paid every Saturday for the work week just completed (Monday through Friday). The last day of the month is Wednesday, May 31. The correct adjusting entry at May 31 is

Which of the following does not occur during the closing process?

The following unadjusted account balance was taken from the accounting records at December 31, 2013:

The Cash account is never part of an adjusting entry.

The balance in the account, Rent Collected in Advance, is reported as a liability on the balance sheet of the landlord.

____________________ is the name given to balance sheet accounts because their balances are carried forward from the current accounting period to future accounting periods.

The amount of interest accrued is added to the note payable account and reported in the liabilities section of the balance sheet.

During the closing process, revenues, expenses, and dividends must be closed to the Income Summary account.

-Refer to Cabana Club. What impact will an adjustment to the Income Tax Expense account on December 31, 2013 have on the accounting equation?

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.) a.a deferred (prepaid)expense b.a deferred (unearned)revenue c.an accrued expense d.an accrued revenue -Two years insurance premium was paid in advance

-Refer to California Condos. On January 1, the Utilities Payable Account had a zero balance. The company paid cash for utilities totaling $50,000 during 2013. How much should be reported as utilities expense for the year ended December 31, 2013?

A company forgot to record four adjustments during 2013. Which one of the following omissions of adjustments will understate net income?

What happens to the accounting equation when the adjustment is recorded to recognize earned revenue previously recorded as unearned revenue?

Which of the following entries properly closes a temporary account?

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

Exam 3: Accrual Accounting

Assets become expenses when?

-Refer to California Condos. On January 1, the balance of Unearned Rent Revenue was $0. The company collected cash from tenants of its apartment building totaling $600,000 during 2013. How much should be reported as unearned rent revenue as of December 31, 2013?

Failure to record the earned portion of unearned revenue would result in which of the following?

The first step in the accounting cycle is to ________________ transactions.

Certified Electronics operates five days per week with a daily payroll of $40,000. Employees are paid every Saturday for the work week just completed (Monday through Friday). The last day of the month is Wednesday, May 31. The correct adjusting entry at May 31 is

Which of the following does not occur during the closing process?

The following unadjusted account balance was taken from the accounting records at December 31, 2013:

The Cash account is never part of an adjusting entry.

The balance in the account, Rent Collected in Advance, is reported as a liability on the balance sheet of the landlord.

____________________ is the name given to balance sheet accounts because their balances are carried forward from the current accounting period to future accounting periods.

The amount of interest accrued is added to the note payable account and reported in the liabilities section of the balance sheet.

During the closing process, revenues, expenses, and dividends must be closed to the Income Summary account.

-Refer to Cabana Club. What impact will an adjustment to the Income Tax Expense account on December 31, 2013 have on the accounting equation?

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.) a.a deferred (prepaid)expense b.a deferred (unearned)revenue c.an accrued expense d.an accrued revenue -Two years insurance premium was paid in advance

-Refer to California Condos. On January 1, the Utilities Payable Account had a zero balance. The company paid cash for utilities totaling $50,000 during 2013. How much should be reported as utilities expense for the year ended December 31, 2013?

A company forgot to record four adjustments during 2013. Which one of the following omissions of adjustments will understate net income?

What happens to the accounting equation when the adjustment is recorded to recognize earned revenue previously recorded as unearned revenue?

Which of the following entries properly closes a temporary account?

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