Question 1

Which one of the accounts below would likely be included in an accrual adjusting entry?

Accepted Answer

A)  Insurance Expense 
B)  Prepaid Rent 
C)  Interest Expense 
D)  Unearned Rent 
A)  Insurance Expense 
B)  Prepaid Rent 
C)  Interest Expense 
D)  Unearned Rent

Question 2

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 3

Explain the difference between accrual basis accounting and cash basis accounting.

Accepted Answer

Accrual basis accounting reports revenue

Question 4

The adjusting entry to adjust supplies was omitted at the end of the year.This would affect the income statement by having

Accepted Answer

A)  expenses understated and therefore net income overstated 
B)  revenues understated and therefore net income understated 
C)  expenses understated and therefore net income understated 
D)  expenses overstated and therefore net income understated 
A)  expenses understated and therefore net income overstated 
B)  revenues understated and therefore net income understated 
C)  expenses understated and therefore net income understated 
D)  expenses overstated and therefore net income understated

Question 5

A company depreciates its equipment $500 a year.The adjusting entry on December 31 is a debit to Depreciation Expense,$500,and a credit to Equipment,$500.

Accepted Answer

A) True 
 B)False

Question 6

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 /

Question 7

Prepare the required entries for the following transactions:

Accepted Answer

The answer of Prepare the required entries for the following...

Question 8

Generally accepted accounting principles require accrual-basis accounting.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Indicate whether the following error would cause the adjusted trial balance totals to be unequal.If the error would cause the adjusted trial balance totals to be unequal,indicate whether the debit or credit total is higher and by how much.
​
The entry for $975 of supplies used during the period was journalized as a debit to Supplies Expense for $795 and credit to Supplies for $975.

Accepted Answer

The total will be un

Question 11

The account type and normal balance of Unearned Revenue is

Accepted Answer

A)  revenue,credit 
B)  expense,debit 
C)  liability,credit 
D)  asset,debit 
A)  revenue,credit 
B)  expense,debit 
C)  liability,credit 
D)  asset,debit

Question 12

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

Accepted Answer

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

Question 13

Which of the following is considered to be an accrued expense?

Accepted Answer

A)  a computer technician has installed the latest software updates and was paid on the same day 
B)  a computer technician has been paid in advance to install software updates as they become available 
C)  a computer technician has just signed an agreement with you regarding pricing for future work 
D)  a computer technician has installed the latest software updates,but you have not received an invoice or made payment 
A)  a computer technician has installed the latest software updates and was paid on the same day 
B)  a computer technician has been paid in advance to install software updates as they become available 
C)  a computer technician has just signed an agreement with you regarding pricing for future work 
D)  a computer technician has installed the latest software updates,but you have not received an invoice or made payment

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

Prepaid rent,representing rent for the next six months' occupancy,would be reported on the tenant's balance sheet as a(n)

Accepted Answer

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

Question 16

Zoey Bella Corp.has a payroll of $10,000 for a five-day workweek.Its employees are paid each Friday for the five-day workweek.Prepare the adjusting entry on December 31 assuming the year ends on Thursday.
​

Accepted Answer

$10,000 /

Question 17

Using accrual accounting,revenue is recorded and reported only

Accepted Answer

A)  when cash is received without regard to when the services are rendered 
B)  when the services are rendered without regard to when cash is received 
C)  when cash is received at the time services are rendered 
D)  if cash is received after the services are rendered 
A)  when cash is received without regard to when the services are rendered 
B)  when the services are rendered without regard to when cash is received 
C)  when cash is received at the time services are rendered 
D)  if cash is received after the services are rendered

Question 18

The account type and normal balance of Prepaid Expense is

Accepted Answer

A)  revenue,credit 
B)  expense,debit 
C)  liability,credit 
D)  asset,debit 
A)  revenue,credit 
B)  expense,debit 
C)  liability,credit 
D)  asset,debit

Question 19

The matching principle supports matching expenses with the related revenues.

Accepted Answer

A) True 
 B)False

Question 20

Adjusting entries affect only expense and asset accounts.

Accepted Answer

A) True 
 B)False

Exam 3: The Adjusting Process

Which one of the accounts below would likely be included in an accrual adjusting entry?

Adjusting entries always include

Explain the difference between accrual basis accounting and cash basis accounting.

The adjusting entry to adjust supplies was omitted at the end of the year.This would affect the income statement by having

A company depreciates its equipment $500 a year.The adjusting entry on December 31 is a debit to Depreciation Expense,$500,and a credit to Equipment,$500.

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.

Prepare the required entries for the following transactions:

Generally accepted accounting principles require accrual-basis accounting.

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?

The account type and normal balance of Unearned Revenue is

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

Which of the following is considered to be an accrued expense?

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

Prepaid rent,representing rent for the next six months' occupancy,would be reported on the tenant's balance sheet as a(n)

Zoey Bella Corp.has a payroll of $10,000 for a five-day workweek.Its employees are paid each Friday for the five-day workweek.Prepare the adjusting entry on December 31 assuming the year ends on Thursday. ​

Using accrual accounting,revenue is recorded and reported only

The account type and normal balance of Prepaid Expense is

The matching principle supports matching expenses with the related revenues.

Adjusting entries affect only expense and asset accounts.

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting for Merchandising 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

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

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

Zoey Bella Corp.has a payroll of $10,000 for a five-day workweek.Its employees are paid each Friday for the five-day workweek.Prepare the adjusting entry on December 31 assuming the year ends on Thursday.