Question 1

Adjusting entries are

Accepted Answer

A)  the same as correcting entries 
B)  needed to bring accounts up to date and match revenue and expense 
C)  optional under generally accepted accounting principles 
D)  rarely needed in large companies 
A)  the same as correcting entries 
B)  needed to bring accounts up to date and match revenue and expense 
C)  optional under generally accepted accounting principles 
D)  rarely needed in large companies

Question 2

At the end of the fiscal year, the usual adjusting entry to accrue wages due on the last day of the fiscal period was omitted. Which of the following is true?

Accepted Answer

A)  total assets will be understated at the end of the current year 
B)  the balance sheet and income statement will be misstated but the statement of stockholders' equity will be correct for the current year 
C)  net income will be overstated for the current year 
D)  total assets and total liabilities will be understated 
A)  total assets will be understated at the end of the current year 
B)  the balance sheet and income statement will be misstated but the statement of stockholders' equity will be correct for the current year 
C)  net income will be overstated for the current year 
D)  total assets and total liabilities will be understated

Question 3

Revenues and expenses should be recorded in the same period to which they relate.

Accepted Answer

A) True 
 B)False

Question 4

A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day. The last payday of December is Friday, December 27. Assume the next pay period begins on Monday, December 30 and the proper adjusting entry is journalized at the end of the fiscal period (December 31). Journalize the entry for the payment of the payroll on Friday, January 10.

Accepted Answer

Accrued salaries for December

Question 5

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 6

A vertical analysis of two income statements for Danielle's Design Services is shown below: ​   *Differences due to rounding
​
Which of the following analyses reflect the data given?

Accepted Answer

A)  Wages expense and rent expense show a favorable trend, while supplies and miscellaneous expenses show an unfavorable trend. 
B)  Wages expense and rent expense show an unfavorable trend, while supplies and miscellaneous expenses show a favorable trend. 
C)  Wages expense and supplies expense show a favorable trend, while rent and miscellaneous expenses show an unfavorable trend. 
D)  Wages expense and miscellaneous expense show an unfavorable trend, and rent and supplies expenses show an unfavorable trend. 
A)  Wages expense and rent expense show a favorable trend, while supplies and miscellaneous expenses show an unfavorable trend. 
B)  Wages expense and rent expense show an unfavorable trend, while supplies and miscellaneous expenses show a favorable trend. 
C)  Wages expense and supplies expense show a favorable trend, while rent and miscellaneous expenses show an unfavorable trend. 
D)  Wages expense and miscellaneous expense show an unfavorable trend, and rent and supplies expenses show an unfavorable trend.

Question 7

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 debit portion of the entry?

Accepted Answer

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

Question 8

What effect will the following adjusting journal entry have on the accounting records?

Accepted Answer

A)  increase net income 
B)  increase revenues 
C)  decrease expenses 
D)  decrease net book value 
A)  increase net income 
B)  increase revenues 
C)  decrease expenses 
D)  decrease net book value

Question 9

The balance in the unearned fees account, before adjustment at the end of the year, is $10,250. Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $3,125.

Accepted Answer

The answer of The balance in the unearned fees account,...

Question 10

A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day. The adjusting entry necessary at the end of the fiscal period ending on the second Wednesday of the pay period includes a

Accepted Answer

A)  debit to Salary Expense of $8,000 
B)  debit to Salaries Payable of $8,000 
C)  credit to Salary Expense of $16,000 
D)  credit to Salaries Payable of $16,000 
A)  debit to Salary Expense of $8,000 
B)  debit to Salaries Payable of $8,000 
C)  credit to Salary Expense of $16,000 
D)  credit to Salaries Payable of $16,000

Question 11

The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry.

Accepted Answer

A)  Record accrual of interest on loan. 
B)  Record payment of interest on loan. 
C)  Record interest due on account. 
D)  Record interest expense paid. 
A)  Record accrual of interest on loan. 
B)  Record payment of interest on loan. 
C)  Record interest due on account. 
D)  Record interest expense paid.

Question 12

For each of the following, journalize the necessary adjusting entry:

Accepted Answer

The answer of For each of the following, journalize the...

Question 13

What is the purpose of the adjusted trial balance?

Accepted Answer

A)  to verify that all of the adjusting entries have been posted 
B)  to verify that the net income (loss) is correctly reported 
C)  to verify that no adjusting journal entry has been omitted 
D)  to verify that the debits and credits balance 
A)  to verify that all of the adjusting entries have been posted 
B)  to verify that the net income (loss) is correctly reported 
C)  to verify that no adjusting journal entry has been omitted 
D)  to verify that the debits and credits balance

Question 14

​Which of the following accounts would likely be included in a deferral adjusting entry?

Accepted Answer

A)  ​Interest Revenue 
B)  ​Unearned Revenue 
C)  ​Salaries Payable 
D)  ​Accounts Receivable 
A)  ​Interest Revenue 
B)  ​Unearned Revenue 
C)  ​Salaries Payable 
D)  ​Accounts Receivable

Question 15

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 16

On January 1, the Newman Company estimated its property tax to be $5,100 for the year.
​

Accepted Answer

(a) $425 ($5,100/12)

Question 17

The supplies account had a beginning balance of $1,750. Supplies purchased during the period totaled $3,500. At the end of the period before adjustment, $350 of supplies were on hand. Prepare the adjusting entry for supplies.

Accepted Answer

$1,750 + $

Question 18

The entry to adjust for the cost of supplies used during the accounting period is

Accepted Answer

A)  debit Supplies Expense; credit Supplies 
B)  debit Stockholders' Equity; credit Supplies 
C)  debit Accounts Payable; credit Supplies 
D)  debit Supplies; credit Stockholders' Equity 
A)  debit Supplies Expense; credit Supplies 
B)  debit Stockholders' Equity; credit Supplies 
C)  debit Accounts Payable; credit Supplies 
D)  debit Supplies; credit Stockholders' Equity

Question 19

Deferred revenue is revenue that is

Accepted Answer

A)  earned and the cash has been received 
B)  earned but the cash has not been received 
C)  not earned and the cash has not been received 
D)  not earned but the cash has been received 
A)  earned and the cash has been received 
B)  earned but the cash has not been received 
C)  not earned and the cash has not been received 
D)  not earned but the cash has been received

Question 20

Data for an adjusting entry described as "accrued wages, $2,020" requires a

Accepted Answer

A)  debit to Wages Expense and a credit to Wages Payable 
B)  debit to Wages Payable and a credit to Wages Expense 
C)  debit to Accounts Receivable and a credit to Wages Expense 
D)  debit to Dividends and a credit to Wages Payable 
A)  debit to Wages Expense and a credit to Wages Payable 
B)  debit to Wages Payable and a credit to Wages Expense 
C)  debit to Accounts Receivable and a credit to Wages Expense 
D)  debit to Dividends and a credit to Wages Payable

Adjusting entries are

At the end of the fiscal year, the usual adjusting entry to accrue wages due on the last day of the fiscal period was omitted. Which of the following is true?

Revenues and expenses should be recorded in the same period to which they relate.

The type of account and normal balance of Prepaid Insurance is

A vertical analysis of two income statements for Danielle's Design Services is shown below: *Differences due to rounding Which of the following analyses reflect the data given?

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 debit portion of the entry?

What effect will the following adjusting journal entry have on the accounting records?

The balance in the unearned fees account, before adjustment at the end of the year, is $10,250. Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $3,125.

A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day. The adjusting entry necessary at the end of the fiscal period ending on the second Wednesday of the pay period includes a

The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry.

For each of the following, journalize the necessary adjusting entry:

What is the purpose of the adjusted trial balance?

Which of the following accounts would likely be included in a deferral adjusting entry?

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

On January 1, the Newman Company estimated its property tax to be $5,100 for the year.

The supplies account had a beginning balance of $1,750. Supplies purchased during the period totaled $3,500. At the end of the period before adjustment, $350 of supplies were on hand. Prepare the adjusting entry for supplies.

The entry to adjust for the cost of supplies used during the accounting period is

Deferred revenue is revenue that is

Data for an adjusting entry described as "accrued wages, $2,020" requires a

Accounting and Business

Double-Entry Accounting

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters

Exam 3: Adjustments: Accruals and Deferrals

Adjusting entries are

At the end of the fiscal year, the usual adjusting entry to accrue wages due on the last day of the fiscal period was omitted. Which of the following is true?

Revenues and expenses should be recorded in the same period to which they relate.

The type of account and normal balance of Prepaid Insurance is

A vertical analysis of two income statements for Danielle's Design Services is shown below: ​ *Differences due to rounding ​ Which of the following analyses reflect the data given?

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 debit portion of the entry?

What effect will the following adjusting journal entry have on the accounting records?

The balance in the unearned fees account, before adjustment at the end of the year, is $10,250. Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $3,125.

A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day. The adjusting entry necessary at the end of the fiscal period ending on the second Wednesday of the pay period includes a

The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry.

For each of the following, journalize the necessary adjusting entry:

What is the purpose of the adjusted trial balance?

​Which of the following accounts would likely be included in a deferral adjusting entry?

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

On January 1, the Newman Company estimated its property tax to be $5,100 for the year. ​

The supplies account had a beginning balance of $1,750. Supplies purchased during the period totaled $3,500. At the end of the period before adjustment, $350 of supplies were on hand. Prepare the adjusting entry for supplies.

The entry to adjust for the cost of supplies used during the accounting period is

Deferred revenue is revenue that is

Data for an adjusting entry described as "accrued wages, $2,020" requires a

Accounting and Business

Double-Entry Accounting

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters

A vertical analysis of two income statements for Danielle's Design Services is shown below: *Differences due to rounding Which of the following analyses reflect the data given?

Which of the following accounts would likely be included in a deferral adjusting entry?

On January 1, the Newman Company estimated its property tax to be $5,100 for the year.