Question 1

Accountants often prepare work sheets at the end of an accounting period in place of financial statements.

Accepted Answer

A) True 
 B)False

Question 2

Statements prepared monthly,quarterly,or at other intervals less than a year in duration are called _____________________.

Accepted Answer

The answer of Statements prepared monthly,quarterly,or at other intervals less...

Question 3

Carpenter Transport Company purchased a truck at a cost of $60,000 on January 1,2013.The truck has an estimated useful life of nine years and a $15,000 residual value.
 A. How much depreciation expense should be reported for the year 2017 ?

B. What is the total amount of accumulated depreciation at December 31,2017 ?

C. Show how the truck and the related accumulated depreciation would appear on Carpenter's December 31,2017, balance sheet immediately after the adjustments are recorded and posted.

D. Is the amount on the balance sheet what the truck could probably be sold for on December 31,2017? What principle governs?

E. How much depreciation expense should be reported for the year 2018 ?

Accepted Answer

None

Question 4

Accumulated depreciation

Accepted Answer

A) increases assets. 
B) decreases assets. 
C) increases liabilities. 
D) decreases liabilities. 
A) increases assets. 
B) decreases assets. 
C) increases liabilities. 
D) decreases liabilities.

Question 5

Frannie's Dance Studio accounting records reflect the following account balances at January 1, 2017.
 $\begin{array} { l r l r } 
\text { Cash } & \$ 100,000 & \text { Supplies } & \$ 4,000 \
\text { Capital Stock } & 50,000 & \text { Retained Earnings } & 54,000
\end{array}$
During 2017, the following transactions occurred:
1.	On February 1, rented a small studio for one year. Paid $6,000 cash.
2.	On November 1, received $1,200 cash for dance lessons to be provided evenly over November, December, and January.
3.	By December 31, used $3,000 of the supplies
4.	At December 31, accrued $3,000 in wages and salaries.
5.	During the year, paid $20,000 in cash for wages and salaries.
6.	During the year, earned $40,000 cash in dance lesson revenue.

Required
 
 A. Determine the effect on the accounting equation of the preceding transactions. Create a table to reflect the increases and decreases in accounts.  
   B. Prepare an income statement for Frannie's Dance Studio for 2017. Ignore income tax effects.

C. Prepare a classified balance sheet for Frannie's Dance Studio at December 31,2017.

Accepted Answer

None

Question 6

Under the accrual basis of accounting,a fast-food restaurant should recognize revenue _________________________.

Accepted Answer

at the poi

Question 7

At the end of 2017,the unadjusted accounting records for Coney Corporation contain the following selected accounts and balances.
?
 $$\begin{array} { l r l r } 
\text { Interest Revenue } & \$ 3,600 & \text { Wage and Salary Expense } & \$ 15,600 \
\text { Insurance Expense } & 6,500 & \text { Interest Expense } & 2,400 \
\text { Depreciation Expense } & 12,000 & \text { Advertising Fees Earned } & 54,300 \
\text { Utilities Expense } & 12,400 & \text { Income Tax Expense } & 5,800 \
\text { Accounts Receivable } & 12,300 & \text { Dividends } & 3,000
\end{array}$$ A. Coney has not paid its employees for the final three days in 2017 . The amount owed is $\$ 700$. How much wage and sal ary expense should Coney report for its year ending December 31 , 2017 ?

B. Given the account listed, what adjustments might Coney make at year-end that could result in additional revenue?

Accepted Answer

A. @#LAT-DLM&
@#LAT-DLM&

B. Advertising fees eame

Question 8

For each of the following sentences ,select the word or group of words that best completes the statement.
$$\begin{array} { l l l } 
\text { Matching } & \text { Cash basis } & \text { Measurement } \
\text { Deferred revenue } & \text { Adjustments } & \text { Deferred expense } \
\text { Accrual basis } & \text { Recognition } & \text { Accrued asset }
\end{array}$$
-A(n)_________________________ results when cash is received before the related amount is reported on the income statement.

Accepted Answer

The answer of For each of the following sentences ,select...

Question 9

An entry that includes the Cash account is probably an adjustment.

Accepted Answer

A) True 
 B)False

Question 10

For each of the following sentences ,select the word or group of words that best completes the statement.
 $$\begin{array} { l l l } 
\text { Matching } & \text { Cash basis } & \text { Measurement } \
\text { Deferred revenue } & \text { Adjustments } & \text { Deferred expense } \
\text { Accrual basis } & \text { Recognition } & \text { Accrued asset }
\end{array}$$
-The success of accounting as a form of communication depends on two concepts,____________________ and ____________________.

Accepted Answer

recognitio

Question 11

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

Accepted Answer

A) Recognition of depreciation on plant assets 
B) Recognition of interest on a note receivable 
C) Recognition of services that had been provided to customers but the cash has not yet been received 
D) Recognition of rent as earned that had been received in advance from customers 
A) Recognition of depreciation on plant assets 
B) Recognition of interest on a note receivable 
C) Recognition of services that had been provided to customers but the cash has not yet been received 
D) Recognition of rent as earned that had been received in advance from customers

Question 12

Reconstruct the adjusting entries from the following T-accounts.

Accepted Answer

Adjusting

Question 13

Lincoln Corp.received advance payments from customers during 2017 of $10,000.At December 31,2017,$1,000 of the advance payments still had not been earned.After the adjustments are recorded and posted at December 31,2017,what are the balances in Unearned Service Revenue and Service Revenue?  
$\begin{array}{llcc}
  \text { Unearned Service Revenue } &  \text {Service Revenue  } \
\end{array}$

a.
$\begin{array}{cc}
&&&\$1,000&&&&&&&&&\$9,000
\end{array}$

b.
$\begin{array}{cc}
&&&\$1,000&&&&&&&&&\$10,000
\end{array}$

c.
$\begin{array}{cc}
&&&\$11,000&&&&&&&&\$1,000
\end{array}$

d.
$\begin{array}{cc}
&&&\$9,000&&&&&&&&\$10,000
\end{array}$

Accepted Answer

The answer of Lincoln Corp.received advance payments from customers during...

Question 14

Measurement in accounting requires choosing an attribute and a unit of measure._________________________ is the attribute used for many of the assets included in the financial statements.

Accepted Answer

The answer of Measurement in accounting requires choosing an attribute...

Question 15

A company forgot to record four adjustments during 2017.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 16

Which one of the following statements is true?

Accepted Answer

A) Recognition is concerned with the dollar amount of each economic effect that should be reported in the financial statements. 
B) Measurement is concerned with how economic effects should be quantified. 
C) The stability concept is concerned with identification of the specific entity for which economic effects are to be recognized and measured. 
D) The monetary unit assumption is concerned with the valuation of economic effects in terms of current purchasing power. 
A) Recognition is concerned with the dollar amount of each economic effect that should be reported in the financial statements. 
B) Measurement is concerned with how economic effects should be quantified. 
C) The stability concept is concerned with identification of the specific entity for which economic effects are to be recognized and measured. 
D) The monetary unit assumption is concerned with the valuation of economic effects in terms of current purchasing power.

Question 17

What two choices must be made in the measurement process for a company that acquires a piece of equipment and needs to record it in the accounting records? Explain.

Accepted Answer

The first choice is deciding the attribu

Question 18

When a company recognizes the portion of supplies used during a year,the effect is to decrease net income.

Accepted Answer

A) True 
 B)False

Question 19

Accumulated depreciation is increased when depreciation is recognized.

Accepted Answer

A) True 
 B)False

Question 20

Quirin Corp.purchases office supplies once a month and prepares monthly financial statements.The asset account Office Supplies on Hand has a balance of $1,850 on March 1.Purchases of supplies during March amount to $1,500.Supplies on hand at March 31 amount to $1,020.Prepare the necessary adjusting entry on Quirin's books on March 31.What will be the effect on net income for March if this entry is not recorded?

Accepted Answer

?
?
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 \[\begin{array} { l l l } 
\text

Accountants often prepare work sheets at the end of an accounting period in place of financial statements.

Statements prepared monthly,quarterly,or at other intervals less than a year in duration are called _____________________.

Accumulated depreciation

Under the accrual basis of accounting,a fast-food restaurant should recognize revenue _________________________.

An entry that includes the Cash account is probably an adjustment.

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

Reconstruct the adjusting entries from the following T-accounts.

Measurement in accounting requires choosing an attribute and a unit of measure._________________________ is the attribute used for many of the assets included in the financial statements.

A company forgot to record four adjustments during 2017.Which one of the following omissions of adjustments will understate net income?

Which one of the following statements is true?

What two choices must be made in the measurement process for a company that acquires a piece of equipment and needs to record it in the accounting records? Explain.

When a company recognizes the portion of supplies used during a year,the effect is to decrease net income.

Accumulated depreciation is increased when depreciation is recognized.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

Exam 4: Income Measurement and Accrual Accounting

Accountants often prepare work sheets at the end of an accounting period in place of financial statements.

Statements prepared monthly,quarterly,or at other intervals less than a year in duration are called _____________________.

Accumulated depreciation

Under the accrual basis of accounting,a fast-food restaurant should recognize revenue _________________________.

An entry that includes the Cash account is probably an adjustment.

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

Reconstruct the adjusting entries from the following T-accounts.

Measurement in accounting requires choosing an attribute and a unit of measure._________________________ is the attribute used for many of the assets included in the financial statements.

A company forgot to record four adjustments during 2017.Which one of the following omissions of adjustments will understate net income?

Which one of the following statements is true?

What two choices must be made in the measurement process for a company that acquires a piece of equipment and needs to record it in the accounting records? Explain.

When a company recognizes the portion of supplies used during a year,the effect is to decrease net income.

Accumulated depreciation is increased when depreciation is recognized.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters