Question 1

Recognition is the process of formally recording or incorporating an item into the financial statements.

Accepted Answer

A) True 
 B)False

Question 2

What happens to the accounting equation when the adjustment for depreciation expense for the accounting period is recorded?

Accepted Answer

A) Assets decrease and stockholders' equity decreases. 
B) Assets increase and stockholders' equity increases. 
C) Assets decrease and liabilities decrease. 
D) Liabilities increase and stockholders' equity decreases. 
A) Assets decrease and stockholders' equity decreases. 
B) Assets increase and stockholders' equity increases. 
C) Assets decrease and liabilities decrease. 
D) Liabilities increase and stockholders' equity decreases.

Question 3

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 _________________________ of accounting necessitates a number of adjustments at the end of an accounting period.

Accepted Answer

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

Question 4

Three months before year-end,Billings Company signed a $100,000,12%,six-month note.Principal and interest will be paid at maturity.No interest should be accrued at year-end because the company has no obligation to pay the interest until the note matures.

Accepted Answer

A) True 
 B)False

Question 5

Dino's Pizza employs 10 workers in its plant.Each employee is paid $8 per hour and works eight hours per day,Monday through Friday.Employees are paid every Wednesday for the previous Monday through Friday workweek.The last payday was Wednesday,May 28.
?
 A. $\text { Compute the dollar amount of the weekly payroll. }$ ?
 B. What is the effect on the accounting equation of the adjusting entry required on Friday, May 30 , the last day of Dino's fiscal period? C. What special precautions are necessary up on recording the payment of wages to employees on the next payday, June 4 ?

Accepted Answer

A.8 hours × $8 per hour × 5 days × 10 wo

Question 6

Vake purchased supplies at a cost of $18,000 during 2017.At January 1,2017,the beginning balance in the Supplies account was $1,000.For 2017,supplies expense was $16,000.How much "Supplies" are on hand as of December 31,2017?

Accepted Answer

A) $1,000 
B) $3,000 
C) $16,000 
D) $17,000 
A) $1,000 
B) $3,000 
C) $16,000 
D) $17,000

Question 7

Expired costs are called assets.

Accepted Answer

A) True 
 B)False

Question 8

A hospital corporation contracted with a private company to collect fees and maintain health facilities that adjoin its property.Users of the health facility can pay cash of $10 for a daily visit or they can purchase a pass.The pass has a magnetic strip that is swiped through the entrance device each time an individual enters the facility.This subtracts a daily fee from the pass balance for each day used.The passes are issued for a fee of $365,which are good for 365 days.Refunds are not issued on the pass.Last year,$18,650 was collected for daily visits,$438,000 of annual passes were issued,and $206,225 of pass usage was registered on the scanning equipment.How much should the company recognize as revenue for the year? Explain how the revenue recognition rule should be applied in this case.

Accepted Answer

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

Question 9

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 ____________________ of accounting is a system in which revenues are recognized when payments are received and expenses are recognized when payments are made.

Accepted Answer

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

Question 10

____________________ is the allocation of the cost of a tangible,long-term asset over its useful life.

Accepted Answer

The answer of ____________________ is the allocation of the cost...

Question 11

____________________ is a rise in the general level of prices in the economy and results in a decrease in purchasing power.

Accepted Answer

The answer of ____________________ is a rise in the general...

Question 12

Scenic View Foods Corporation
The following consolidated statements of income are for Scenic View Foods Corporation for the years ending December 31,2017 and 2018:
  
-Refer to the consolidated statements of income for Scenic View Foods Corporation.
?
Required
Identify three specific accounts of Scenic View Foods that might include expenses accrued as a result of adjusting journal entries.Show what these entries would look like in journal format.Ignore amounts.

Accepted Answer

The accounts are Wages Expense,Interest

Question 13

The one asset account that never requires adjustment at the end of the period is ____________________.

Accepted Answer

The answer of The one asset account that never requires...

Question 14

Financial statements should be prepared before any adjustments are made.

Accepted Answer

A) True 
 B)False

Question 15

The following accounts appear on Treetop Inc.'s 2017 financial statements.The accounts are listed in alphabetical order,and the balance in each account is the normal balance for that account.All amounts are in millions of dollars.List the accounts and their amounts that will be closed out when the closing process occurs at the end of 2017 for Treetop.
 
 $\begin{array}{lr}
\text { Cash Dividends Paid } & \$ 104 \
\text { Cost of Sales and Rel ated Buying and Occupancy Costs } & 4,317 \
\text { Credit Card Revenues } & 325 \
\text { Income Tax Expense } & 207 \
\text { Interest Expense, net } & 126\
\text { Other Income and Expense, net } & 13 \
\text { Net Sales } & 7,172 \
\text { Selling, General, and Admini strative Expenses-Credit } & 275 \
\text { Segment } & \
\text { Selling, General, and Admini strative Expenses-Retail Stores, } & 2,228 \
\text { Direct and Other Segments } &
\end{array}$

Accepted Answer

\[\begin{array} { l r } 
\text { Net Sal

Question 16

Adjustments are recorded for all transactions involving outside entities.

Accepted Answer

A) True 
 B)False

Question 17

Becca Corp.purchased supplies at a cost of $5,200 during 2016.At January 1,2017,supplies on hand were $1,600.During the year,the company used $4,000 of supplies.Becca's accounting year ends on December 31.
 A. What is the effect on the accounting equation of the adjusting entry that is prepared at December 31,2017?

B. Under the accrual basis of accounting, how much is Supplies Expense for 2017 ?

C. How much should be reported on the December 31,2017, balance sheet for Supplies?

D. What type of adjustment was made in part $A$ ?

Accepted Answer

A.
?
 @#IMG-DLM& B.

Question 18

Frank Corporation purchased supplies at a cost of $15,000 during 2017.At January 1,2017,supplies on hand were $2,000.At December 31,2017,supplies on hand are $2,500.Calculate supplies expense for 2017.

Accepted Answer

A) $15,500 
B) $14,500 
C) $15,000 
D) $17,000 
A) $15,500 
B) $14,500 
C) $15,000 
D) $17,000

Question 19

Remaz Corp.purchased equipment at a cost of $220,000 in January,2016.As of January 1,2017,depreciation of $160,000 had been recorded on this asset.Depreciation expense for 2017 is $50,000.After the adjustments are recorded and posted at December 31,2017,what are the balances for Equipment and Accumulated Depreciation?

$\begin{array}{cc}
  \text {  Equipment} &  \text { Accumulated Depreciation } \
\end{array}$

a.
$\begin{array}{cc}
&\$220,000&&&\$210,000
\end{array}$

b.
$\begin{array}{cc}
&\$220,000&&&&\$0
\end{array}$

c.
$\begin{array}{cc}
&\$160,000&&&\$50,000
\end{array}$

d.
$\begin{array}{cc}
&\$120,000&&&\$210,000
\end{array}$

Accepted Answer

The answer of Remaz Corp.purchased equipment at a cost of...

Question 20

Which of the following transactions involves an accrued asset?

Accepted Answer

A) Wages earned by employees but not yet paid 
B) Rent collected in advance from a tenant 
C) Rent owed by a tenant but not yet collected 
D) One year's premium on life insurance policy paid in advance 
A) Wages earned by employees but not yet paid 
B) Rent collected in advance from a tenant 
C) Rent owed by a tenant but not yet collected 
D) One year's premium on life insurance policy paid in advance

Recognition is the process of formally recording or incorporating an item into the financial statements.

What happens to the accounting equation when the adjustment for depreciation expense for the accounting period is recorded?

Three months before year-end,Billings Company signed a $100,000,12%,six-month note.Principal and interest will be paid at maturity.No interest should be accrued at year-end because the company has no obligation to pay the interest until the note matures.

Vake purchased supplies at a cost of $18,000 during 2017.At January 1,2017,the beginning balance in the Supplies account was $1,000.For 2017,supplies expense was $16,000.How much "Supplies" are on hand as of December 31,2017?

Expired costs are called assets.

____________________ is the allocation of the cost of a tangible,long-term asset over its useful life.

____________________ is a rise in the general level of prices in the economy and results in a decrease in purchasing power.

The one asset account that never requires adjustment at the end of the period is ____________________.

Financial statements should be prepared before any adjustments are made.

Adjustments are recorded for all transactions involving outside entities.

Frank Corporation purchased supplies at a cost of $15,000 during 2017.At January 1,2017,supplies on hand were $2,000.At December 31,2017,supplies on hand are $2,500.Calculate supplies expense for 2017.

Which of the following transactions involves an accrued asset?

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

Recognition is the process of formally recording or incorporating an item into the financial statements.

What happens to the accounting equation when the adjustment for depreciation expense for the accounting period is recorded?

Three months before year-end,Billings Company signed a $100,000,12%,six-month note.Principal and interest will be paid at maturity.No interest should be accrued at year-end because the company has no obligation to pay the interest until the note matures.

Vake purchased supplies at a cost of $18,000 during 2017.At January 1,2017,the beginning balance in the Supplies account was $1,000.For 2017,supplies expense was $16,000.How much "Supplies" are on hand as of December 31,2017?

Expired costs are called assets.

____________________ is the allocation of the cost of a tangible,long-term asset over its useful life.

____________________ is a rise in the general level of prices in the economy and results in a decrease in purchasing power.

The one asset account that never requires adjustment at the end of the period is ____________________.

Financial statements should be prepared before any adjustments are made.

Adjustments are recorded for all transactions involving outside entities.

Frank Corporation purchased supplies at a cost of $15,000 during 2017.At January 1,2017,supplies on hand were $2,000.At December 31,2017,supplies on hand are $2,500.Calculate supplies expense for 2017.

Which of the following transactions involves an accrued asset?

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