Question 1

Using accrual accounting,expenses are recorded and reported only

Accepted Answer

A) when they are incurred,whether or not cash is paid 
B) when they are incurred and paid at the same time 
C) if they are paid before they are incurred 
D) if they are paid after they are incurred 
A) when they are incurred,whether or not cash is paid 
B) when they are incurred and paid at the same time 
C) if they are paid before they are incurred 
D) if they are paid after they are incurred

Question 2

If there is a balance in the prepaid rent account after adjusting entries are made,it represents an

Accepted Answer

A) deferral 
B) accrual 
C) revenue 
D) liability 
A) deferral 
B) accrual 
C) revenue 
D) liability

Question 3

The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as an

Accepted Answer

A) stockholders' equity 
B) asset 
C) contra asset 
D) liability 
A) stockholders' equity 
B) asset 
C) contra asset 
D) liability

Question 4

Which account would normally not require an adjusting entry?

Accepted Answer

A) Wages Expense 
B) Accounts Receivable 
C) Accumulated Depreciation 
D) Cash 
A) Wages Expense 
B) Accounts Receivable 
C) Accumulated Depreciation 
D) Cash

Question 5

Using the following account balances for Garry's Tree Service,prepare a trial balance.

Accepted Answer

None

Question 6

The supplies account has a balance of $4,400 at the beginning of the year and was debited during the year for $2,400,representing the total of supplies purchased during the year.If $400 of supplies are on hand at the end of the year,the supplies expense to be reported on the income statement for the year is

Accepted Answer

A) $400 
B) $2,000 
C) $6,800 
D) $6,400 
A) $400 
B) $2,000 
C) $6,800 
D) $6,400

Question 7

The revenue recognition concept states that revenue should be recorded in the same period as the cash is received.

Accepted Answer

A) True 
 B)False

Question 8

Journalize the six entries to adjust the accounts at December 31.Hint: One of the accounts was affected by two different adjusting entries.

Accepted Answer

The answer of Journalize the six entries to adjust the...

Question 9

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

Accepted Answer

A) Adjust supplies inventory to actual. 
B) Record purchase of supplies. 
C) Reduce supplies expense. 
D) Record sale of supplies. 
A) Adjust supplies inventory to actual. 
B) Record purchase of supplies. 
C) Reduce supplies expense. 
D) Record sale of supplies.

Question 10

Which of the following is an example of accrued revenue?

Accepted Answer

A) snow removal services that have been paid for three months in advance 
B) snow removal services that have been provided but have not been billed or paid 
C) an agreement that has been signed for snow removal services for the next three months 
D) snow removal services that has been provided and paid on the same day 
A) snow removal services that have been paid for three months in advance 
B) snow removal services that have been provided but have not been billed or paid 
C) an agreement that has been signed for snow removal services for the next three months 
D) snow removal services that has been provided and paid on the same day

Question 11

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account,which of the following describes the effect of the credit portion of the entry?

Accepted Answer

A) decreases the balance of an stockholders' equity account 
B) increases the balance of a liability account 
C) increases the balance of an asset account 
D) decreases the balance of an expense account 
A) decreases the balance of an stockholders' equity account 
B) increases the balance of a liability account 
C) increases the balance of an asset account 
D) decreases the balance of an expense account

Question 12

By ignoring and not posting the adjusting journal entries to the appropriate accounts,net income will always be overstated.

Accepted Answer

A) True 
 B)False

Question 13

The type of account and normal balance of Prepaid Insurance is

Accepted Answer

A) asset,credit 
B) asset,debit 
C) contra asset,credit 
D) contra asset,debit 
A) asset,credit 
B) asset,debit 
C) contra asset,credit 
D) contra asset,debit

Question 14

Which of the accounting steps in the accounting process below would be completed last?

Accepted Answer

A) preparing the adjusted trial balance 
B) posting 
C) preparing the financial statements 
D) journalizing 
A) preparing the adjusted trial balance 
B) posting 
C) preparing the financial statements 
D) journalizing

Question 15

The entry to adjust the accounts for salaries accrued at the end of the accounting period is

Accepted Answer

A) debit Salaries Payable; credit Cash 
B) debit Cash; credit Salaries Payable 
C) debit Salaries Payable; credit Salaries Expense 
D) debit Salaries Expense; credit Salaries Payable 
A) debit Salaries Payable; credit Cash 
B) debit Cash; credit Salaries Payable 
C) debit Salaries Payable; credit Salaries Expense 
D) debit Salaries Expense; credit Salaries Payable

Question 16

The matching concept requires expenses be recorded in the same period that the related revenue is recorded.

Accepted Answer

A) True 
 B)False

Question 17

The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed

Accepted Answer

A) historical cost 
B) contra asset 
C) book value 
D) market value 
A) historical cost 
B) contra asset 
C) book value 
D) market value

Question 18

Adjusting entries always include

Accepted Answer

A) only income statement accounts 
B) only balance sheet accounts 
C) the cash account 
D) at least one income statement account and one balance sheet account 
A) only income statement accounts 
B) only balance sheet accounts 
C) the cash account 
D) at least one income statement account and one balance sheet account

Question 19

At the end of the fiscal year,the usual adjusting entry to prepaid insurance to record expired insurance was omitted.Which of the following statements is true?

Accepted Answer

A) total assets at the end of the year will be understated. 
B) stockholders' equity at the end of the year will be understated. 
C) net income for the year will be overstated. 
D) insurance expense will be overstated 
A) total assets at the end of the year will be understated. 
B) stockholders' equity at the end of the year will be understated. 
C) net income for the year will be overstated. 
D) insurance expense will be overstated

Question 20

Which of the following is an example of an accrued expense?

Accepted Answer

A) salary owed but not yet paid 
B) fees received but not yet earned 
C) supplies on hand 
D) a two-year premium paid on a fire insurance policy 
A) salary owed but not yet paid 
B) fees received but not yet earned 
C) supplies on hand 
D) a two-year premium paid on a fire insurance policy

Using accrual accounting,expenses are recorded and reported only

If there is a balance in the prepaid rent account after adjusting entries are made,it represents an

The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as an

Which account would normally not require an adjusting entry?

Using the following account balances for Garry's Tree Service,prepare a trial balance.

The revenue recognition concept states that revenue should be recorded in the same period as the cash is received.

Journalize the six entries to adjust the accounts at December 31.Hint: One of the accounts was affected by two different adjusting entries.

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

Which of the following is an example of accrued revenue?

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account,which of the following describes the effect of the credit portion of the entry?

By ignoring and not posting the adjusting journal entries to the appropriate accounts,net income will always be overstated.

The type of account and normal balance of Prepaid Insurance is

Which of the accounting steps in the accounting process below would be completed last?

The entry to adjust the accounts for salaries accrued at the end of the accounting period is

The matching concept requires expenses be recorded in the same period that the related revenue is recorded.

The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed

Adjusting entries always include

At the end of the fiscal year,the usual adjusting entry to prepaid insurance to record expired insurance was omitted.Which of the following statements is true?

Which of the following is an example of an accrued expense?

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley,internal Control,and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization,stock Transactions,and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 3: The Adjusting Process

Using accrual accounting,expenses are recorded and reported only

If there is a balance in the prepaid rent account after adjusting entries are made,it represents an

The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as an

Which account would normally not require an adjusting entry?

Using the following account balances for Garry's Tree Service,prepare a trial balance.

The revenue recognition concept states that revenue should be recorded in the same period as the cash is received.

Journalize the six entries to adjust the accounts at December 31.Hint: One of the accounts was affected by two different adjusting entries.

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

Which of the following is an example of accrued revenue?

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account,which of the following describes the effect of the credit portion of the entry?

By ignoring and not posting the adjusting journal entries to the appropriate accounts,net income will always be overstated.

The type of account and normal balance of Prepaid Insurance is

Which of the accounting steps in the accounting process below would be completed last?

The entry to adjust the accounts for salaries accrued at the end of the accounting period is

The matching concept requires expenses be recorded in the same period that the related revenue is recorded.

The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed

Adjusting entries always include

At the end of the fiscal year,the usual adjusting entry to prepaid insurance to record expired insurance was omitted.Which of the following statements is true?

Which of the following is an example of an accrued expense?

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley,internal Control,and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization,stock Transactions,and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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