Question 1

An example of deferred revenue is Unearned Rent.

Accepted Answer

A) True 
 B)False

Question 2

Prior to the adjusting process, accrued revenue has

Accepted Answer

A)  been earned and cash received 
B)  been earned and not recorded as revenue 
C)  not been earned but recorded as revenue 
D)  not been recorded as revenue but cash has been received 
A)  been earned and cash received 
B)  been earned and not recorded as revenue 
C)  not been earned but recorded as revenue 
D)  not been recorded as revenue but cash has been received

Question 3

Which of the following is considered to be unearned revenue?

Accepted Answer

A)  theater tickets sold last month for yesterday's performance 
B)  theater tickets sold yesterday on credit for yesterday's performance 
C)  theater tickets that were not sold for the current performance 
D)  theater tickets sold for next month's performance 
A)  theater tickets sold last month for yesterday's performance 
B)  theater tickets sold yesterday on credit for yesterday's performance 
C)  theater tickets that were not sold for the current performance 
D)  theater tickets sold for next month's performance

Question 4

The systematic allocation of land's cost to expense is called depreciation.

Accepted Answer

A) True 
 B)False

Question 5

Gizmo Inc. purchased a one-year insurance policy on October 1 for $1,800. The adjusting entry on December 31 would be
​

Accepted Answer

$1,800 / 12 = $150 p

Question 6

Buster Industries pays weekly salaries of $30,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is

Accepted Answer

A)  debit Salaries Payable, $12,000; credit Cash, $12,000 
B)  debit Salary Expense, $12,000; credit Dividends, $12,000 
C)  debit Salary Expense, $12,000; credit Salaries Payable, $12,000 
D)  debit Dividends, $12,000; credit Cash, $12,000 
A)  debit Salaries Payable, $12,000; credit Cash, $12,000 
B)  debit Salary Expense, $12,000; credit Dividends, $12,000 
C)  debit Salary Expense, $12,000; credit Salaries Payable, $12,000 
D)  debit Dividends, $12,000; credit Cash, $12,000

Question 7

Prepare adjusting entries for the following transactions:

Accepted Answer

The answer of Prepare adjusting entries for the following transactions:...

Question 8

On January 1, DogMart Company purchased a two-year liability insurance policy for $22,800 cash. The purchase was recorded to Prepaid Insurance. Prepare the January 31 adjusting entry.

Accepted Answer

$22,800/24

Question 9

The balance of the building account is $4,500,000, and the balance in the accumulated depreciation-building account is $2,400,000. What is the book value of the equipment?

Accepted Answer

A)  $2,400,000 
B)  $2,100,000 
C)  $4,500,000 
D)  $6,900,000 
A)  $2,400,000 
B)  $2,100,000 
C)  $4,500,000 
D)  $6,900,000

Question 10

If the adjustment for depreciation for the year is inadvertently omitted, the assets on the balance sheet at the end of the period will be understated.

Accepted Answer

A) True 
 B)False

Question 11

Depreciation Expense is reported on the balance sheet as an addition to the related asset.

Accepted Answer

A) True 
 B)False

Question 12

An adjusting entry would adjust an expense account so the expense is reported when incurred.

Accepted Answer

A) True 
 B)False

Question 13

Accrued revenues would appear on the balance sheet as

Accepted Answer

A)  assets 
B)  liabilities 
C)  common stock 
D)  prepaid expenses 
A)  assets 
B)  liabilities 
C)  common stock 
D)  prepaid expenses

Question 14

The balance in the prepaid rent account before adjustment at the end of the year is $32,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is

Accepted Answer

A)  debit Rent Expense, $8,000; credit Prepaid Rent, $8,000 
B)  debit Prepaid Rent, $24,000; credit Rent Expense, $8,000 
C)  debit Rent Expense, $24,000; credit Prepaid Rent, $8,000 
D)  debit Prepaid Rent, $8,000; credit Rent Expense, $8,000 
A)  debit Rent Expense, $8,000; credit Prepaid Rent, $8,000 
B)  debit Prepaid Rent, $24,000; credit Rent Expense, $8,000 
C)  debit Rent Expense, $24,000; credit Prepaid Rent, $8,000 
D)  debit Prepaid Rent, $8,000; credit Rent Expense, $8,000

Question 15

A fixed asset's market value is reflected on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 16

The term used to describe an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is

Accepted Answer

A)  prepaid 
B)  deferred 
C)  accrued 
D)  matched 
A)  prepaid 
B)  deferred 
C)  accrued 
D)  matched

Question 17

What is the purpose of an adjusted trial balance? What type(s) of error does it detect? What type(s) of error does it not detect?

Accepted Answer

The purpose of an adjusted trial balance

Question 18

Vertical analysis is useful for analyzing financial statement changes over time.

Accepted Answer

A) True 
 B)False

Question 19

The balance in the supplies account before adjustment at the end of the year is $6,250. The proper adjusting entry if the amount of supplies on hand at the end of the year is $1,500 would be

Accepted Answer

A)  debit Supplies, $1,500; credit Supplies Expense, $1,500 
B)  debit Supplies Expense, $4,750; credit Supplies, $4,750 
C)  debit Supplies Expense, $1,500; credit Supplies, $1,500 
D)  debit Supplies, $4,750; credit Supplies Expense, $4,750 
A)  debit Supplies, $1,500; credit Supplies Expense, $1,500 
B)  debit Supplies Expense, $4,750; credit Supplies, $4,750 
C)  debit Supplies Expense, $1,500; credit Supplies, $1,500 
D)  debit Supplies, $4,750; credit Supplies Expense, $4,750

Question 20

On November 15, Great Designs Company purchased an advertising campaign for the month of December. Great Designs paid cash of $2,700 in advance. The advertising campaign ran in December and was completed on December 31.
​
(a) Prepare all necessary journal entries for the advertising campaign for November and December .
(b) Explain why you prepared this/these journal entries.

Accepted Answer

@#IMG-DLM&_TB2281_00

An example of deferred revenue is Unearned Rent.

Prior to the adjusting process, accrued revenue has

Which of the following is considered to be unearned revenue?

The systematic allocation of land's cost to expense is called depreciation.

Gizmo Inc. purchased a one-year insurance policy on October 1 for $1,800. The adjusting entry on December 31 would be

Buster Industries pays weekly salaries of $30,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is

Prepare adjusting entries for the following transactions:

On January 1, DogMart Company purchased a two-year liability insurance policy for $22,800 cash. The purchase was recorded to Prepaid Insurance. Prepare the January 31 adjusting entry.

The balance of the building account is $4,500,000, and the balance in the accumulated depreciation-building account is $2,400,000. What is the book value of the equipment?

If the adjustment for depreciation for the year is inadvertently omitted, the assets on the balance sheet at the end of the period will be understated.

Depreciation Expense is reported on the balance sheet as an addition to the related asset.

An adjusting entry would adjust an expense account so the expense is reported when incurred.

Accrued revenues would appear on the balance sheet as

The balance in the prepaid rent account before adjustment at the end of the year is $32,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is

A fixed asset's market value is reflected on the balance sheet.

The term used to describe an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is

What is the purpose of an adjusted trial balance? What type(s) of error does it detect? What type(s) of error does it not detect?

Vertical analysis is useful for analyzing financial statement changes over time.

The balance in the supplies account before adjustment at the end of the year is $6,250. The proper adjusting entry if the amount of supplies on hand at the end of the year is $1,500 would be

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

An example of deferred revenue is Unearned Rent.

Prior to the adjusting process, accrued revenue has

Which of the following is considered to be unearned revenue?

The systematic allocation of land's cost to expense is called depreciation.

Gizmo Inc. purchased a one-year insurance policy on October 1 for $1,800. The adjusting entry on December 31 would be ​

Buster Industries pays weekly salaries of $30,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is

Prepare adjusting entries for the following transactions:

On January 1, DogMart Company purchased a two-year liability insurance policy for $22,800 cash. The purchase was recorded to Prepaid Insurance. Prepare the January 31 adjusting entry.

The balance of the building account is $4,500,000, and the balance in the accumulated depreciation-building account is $2,400,000. What is the book value of the equipment?

If the adjustment for depreciation for the year is inadvertently omitted, the assets on the balance sheet at the end of the period will be understated.

Depreciation Expense is reported on the balance sheet as an addition to the related asset.

An adjusting entry would adjust an expense account so the expense is reported when incurred.

Accrued revenues would appear on the balance sheet as

The balance in the prepaid rent account before adjustment at the end of the year is $32,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is

A fixed asset's market value is reflected on the balance sheet.

The term used to describe an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is

What is the purpose of an adjusted trial balance? What type(s) of error does it detect? What type(s) of error does it not detect?

Vertical analysis is useful for analyzing financial statement changes over time.

The balance in the supplies account before adjustment at the end of the year is $6,250. The proper adjusting entry if the amount of supplies on hand at the end of the year is $1,500 would be

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

Gizmo Inc. purchased a one-year insurance policy on October 1 for $1,800. The adjusting entry on December 31 would be