Question 1

When are revenues and expenses recognized in the same accounting period that cash receipts and payments occur?

Accepted Answer

A) under the cash basis of accounting 
B) under the accrual basis of accounting 
C) under the adjusting method of accounting 
D) under the finance method 
A) under the cash basis of accounting 
B) under the accrual basis of accounting 
C) under the adjusting method of accounting 
D) under the finance method

Question 2

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
-Interest is earned on notes receivable, but not yet received

Accepted Answer

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

Question 3

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
-Insurance is earned in the current period, although collections from customers had been received in a previous period

Accepted Answer

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

Question 4

An informal schedule called a ________________ is helpful for organizing and preparing the information necessary to perform the end-of-period steps in the accounting cycle.

Accepted Answer

The answer of An informal schedule called a ________________ is...

Question 5

Closing entries are necessary to assure that the company's net income for an accounting period is accurately determined.

Accepted Answer

A) True 
 B)False

Question 6

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
-Requires that expenses be recorded in the same period as the revenue that they helped generate

Accepted Answer

The answer of Match each statement to the item listed...

Question 7

Which one of the following adjustments increases net income for the period?

Accepted Answer

A) Recognition of the amount of supplies used. 
B) Recognition revenue earned, but not recorded. 
C) Recognition of wages earned, but not paid to employees. 
D) Recognition of rent costs that had been paid to the landlord in advance. 
A) Recognition of the amount of supplies used. 
B) Recognition revenue earned, but not recorded. 
C) Recognition of wages earned, but not paid to employees. 
D) Recognition of rent costs that had been paid to the landlord in advance.

Question 8

____________________ is the name given to revenue, expense, and dividend accounts because they are closed at the end of the period.

Accepted Answer

The answer of ____________________ is the name given to revenue,...

Question 9

"You Decide" Essay
You are the owner and operator of a catering business. In addition to catering a wide variety of functions such as business meetings, weddings, birthday parties, etc., you sell decorated cakes in your store. A particular business customer has signed a $12,000 contract with you to provide refreshments for its monthly business meetings with the total contract amount due at the contract signing.
Describe the rules you will follow in booking (i.e., recording)the cake sales revenues and catering contracts such as the one described here.

Accepted Answer

Revenue from cake sales should be booked

Question 10

Refer to C2IT Corporation. Answer each of the following:

Accepted Answer

The answer of Refer to C2IT Corporation. Answer each of...

Question 11

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 depreciation on machinery used during the current year is recorded

Accepted Answer

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

Question 12

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
-Commissions earned by sales people

Accepted Answer

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

Question 13

A landscaping company operates five days per week with a daily payroll of $16,000. 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 amount of Wages Expense recorded on the next payday, Saturday, April 3?

Accepted Answer

A) $ -0- 
B) $48,000 
C) $32,000 
D) $80,000 
A) $ -0- 
B) $48,000 
C) $32,000 
D) $80,000

Question 14

Carolina Truck Lines purchased a truck at a cost of $22,000 in 2008. As of January 1, 2013, depreciation of $18,000 had been recorded on this asset. Depreciation expense for 2013 is $2,000. Before the adjustments are recorded and posted at December 31, 2013, what is the truck's book value?

Accepted Answer

A) $22,000 
B) $18,000 
C) $4,000 
D) $2,000 
A) $22,000 
B) $18,000 
C) $4,000 
D) $2,000

Question 15

The Dividend account is known as which of the following?

Accepted Answer

A) temporary account 
B) closing account 
C) real account 
D) Both b andc. 
A) temporary account 
B) closing account 
C) real account 
D) Both b andc.

Question 16

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
-Land

Accepted Answer

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

Question 17

Match Incorporated recorded salary expense of $120,000 in 2013. However, additional salaries of $9,000 had been earned, but not paid or recorded at December 31, 2013. After the adjustments are recorded and posted at December 31, 2013, the balances in the Salaries Expense and Salaries Payable accounts will be Salaries Expense Salaries Payable

Accepted Answer

A) $129,000 $9,000 
B) $120,000 $0 
C) $120,000 $9,000 
D) $109,000 $0 
A) $129,000 $9,000 
B) $120,000 $0 
C) $120,000 $9,000 
D) $109,000 $0

Question 18

Given below are the accounts from the ledger AFTER adjustments have been posted at December 31, 2014.

Accepted Answer

The answer of Given below are the accounts from the...

Question 19

The following unadjusted amounts were taken from a company's accounting records at December 31, 2013:
Note Payable, 6%, 4-month, dated December 1, 2013, for $500,000
Note Receivable, 12%, 6-month, dated October 1, 2013, for $400,000

Accepted Answer

The answer of The following unadjusted amounts were taken from...

Question 20

Carithers Cleaning Service received advance payments from customers during 2013 of $24,000. At December 31, 2013, $5,000 of the advance payments still had not been earned. After the adjustments are recorded and posted at December 31, 2013, the balances in the Unearned Service Revenue and Service Revenue accounts will be: Unearned Service Revenue Service Revenue

Accepted Answer

A) $0 $24,000 
B) $5,000 $19,000 
C) $5,000 $24,000 
D) $24,000 $5,000 
A) $0 $24,000 
B) $5,000 $19,000 
C) $5,000 $24,000 
D) $24,000 $5,000

When are revenues and expenses recognized in the same accounting period that cash receipts and payments occur?

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 -Interest is earned on notes receivable, but not yet received

An informal schedule called a ________________ is helpful for organizing and preparing the information necessary to perform the end-of-period steps in the accounting cycle.

Closing entries are necessary to assure that the company's net income for an accounting period is accurately determined.

Which one of the following adjustments increases net income for the period?

____________________ is the name given to revenue, expense, and dividend accounts because they are closed at the end of the period.

Refer to C2IT Corporation. Answer each of the following:

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 depreciation on machinery used during the current year is recorded

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 -Commissions earned by sales people

Carolina Truck Lines purchased a truck at a cost of $22,000 in 2008. As of January 1, 2013, depreciation of $18,000 had been recorded on this asset. Depreciation expense for 2013 is $2,000. Before the adjustments are recorded and posted at December 31, 2013, what is the truck's book value?

The Dividend account is known as which of the following?

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 -Land

Given below are the accounts from the ledger AFTER adjustments have been posted at December 31, 2014.

The following unadjusted amounts were taken from a company's accounting records at December 31, 2013: Note Payable, 6%, 4-month, dated December 1, 2013, for $500,000 Note Receivable, 12%, 6-month, dated October 1, 2013, for $400,000

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

When are revenues and expenses recognized in the same accounting period that cash receipts and payments occur?

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 -Interest is earned on notes receivable, but not yet received

An informal schedule called a ________________ is helpful for organizing and preparing the information necessary to perform the end-of-period steps in the accounting cycle.

Closing entries are necessary to assure that the company's net income for an accounting period is accurately determined.

Which one of the following adjustments increases net income for the period?

____________________ is the name given to revenue, expense, and dividend accounts because they are closed at the end of the period.

Refer to C2IT Corporation. Answer each of the following:

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 depreciation on machinery used during the current year is recorded

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 -Commissions earned by sales people

Carolina Truck Lines purchased a truck at a cost of $22,000 in 2008. As of January 1, 2013, depreciation of $18,000 had been recorded on this asset. Depreciation expense for 2013 is $2,000. Before the adjustments are recorded and posted at December 31, 2013, what is the truck's book value?

The Dividend account is known as which of the following?

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 -Land

Given below are the accounts from the ledger AFTER adjustments have been posted at December 31, 2014.

The following unadjusted amounts were taken from a company's accounting records at December 31, 2013: Note Payable, 6%, 4-month, dated December 1, 2013, for $500,000 Note Receivable, 12%, 6-month, dated October 1, 2013, for $400,000

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