Question 1

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

Accepted Answer

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

Question 2

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 3

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

Question 4

The company determines that the interest expense on a note payable for the period ending December 31 is $775.This amount is payable on January 1.Prepare the journal entries required on December 31 and January 1.

Accepted Answer

The answer of The company determines that the interest expense...

Question 5

The unexpired insurance at the end of the fiscal period represents

Accepted Answer

A)  an accrued asset 
B)  an accrued liability 
C)  an accrued expense 
D)  a deferred expense 
A)  an accrued asset 
B)  an accrued liability 
C)  an accrued expense 
D)  a deferred expense

Question 6

If the debit portion of an adjusting entry is to an asset account,then the credit portion must be to a liability account.

Accepted Answer

A) True 
 B)False

Question 7

Prepaid expenses are eventually expected to become

Accepted Answer

A)  expenses when their future economic value expires or is used up 
B)  revenues when services are performed 
C)  expenses in the period when they are paid 
D)  revenues when the liability is no longer owed 
A)  expenses when their future economic value expires or is used up 
B)  revenues when services are performed 
C)  expenses in the period when they are paid 
D)  revenues when the liability is no longer owed

Question 8

The net income reported on the income statement is $58,000.However,adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $1,300.Net income,as corrected,is

Accepted Answer

A)  $56,700 
B)  $58,000 
C)  $55,800 
D)  $54,500 
A)  $56,700 
B)  $58,000 
C)  $55,800 
D)  $54,500

Question 9

Adjusting journal entries are dated on the last day of the period.

Accepted Answer

A) True 
 B)False

Question 10

The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n)

Accepted Answer

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

Question 11

Accumulated depreciation is reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 12

The difference between deferred revenue and accrued revenue is that accrued revenue has been recorded and needs
adjusting and deferred revenue has never been recorded.

Accepted Answer

A) True 
 B)False

Question 13

Which of the accounting steps in the accounting process below would be completed last?

Accepted Answer

A)  preparing the adjusted trial balance 
B)  posting 
C)  preparing the financial statements 
D)  journalizing 
A)  preparing the adjusted trial balance 
B)  posting 
C)  preparing the financial statements 
D)  journalizing

Question 14

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

The answer of On November 15,Great Designs Company purchased an...

Question 15

A one-year insurance policy was purchased on June 1 for $2,400.The adjusting entry on December 31 would be:

Accepted Answer

$2,400 / 1

Question 16

Depreciation on an office building is $2,800.The adjusting entry on December 31 would be

Accepted Answer

The answer of Depreciation on an office building is $2,800.The...

Question 17

Which account would normally not require an adjusting entry?

Accepted Answer

A)  Wages Expense 
B)  Accounts Receivable 
C)  Accumulated Depreciation 
D)  Cash 
A)  Wages Expense 
B)  Accounts Receivable 
C)  Accumulated Depreciation 
D)  Cash

Question 18

A company pays an employee $3,000 for a five-day work week,Monday-Friday.The adjusting entry on December 31,which is a Wednesday,is a debit to Wages Expense,$1,800,and a credit to Wages Payable,$1,800.

Accepted Answer

A) True 
 B)False

Question 19

On December 15,Great Designs Company hired an independent contractor for a project.The contractor completed the project on December 29 and submitted an invoice for $2,425 which was due on January 15.The amount was duly paid on January 15.
​
(a)Prepare the journal entry or entries necessary to record these transactions.
(b)Explain why you prepared this / these journal entries.

Accepted Answer

The answer of On December 15,Great Designs Company hired an...

Question 20

Deferrals are recorded transactions that delay the recognition of an expense or revenue.

Accepted Answer

A) True 
 B)False

Exam 3: The Adjusting Process

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

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

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

The company determines that the interest expense on a note payable for the period ending December 31 is $775.This amount is payable on January 1.Prepare the journal entries required on December 31 and January 1.

The unexpired insurance at the end of the fiscal period represents

If the debit portion of an adjusting entry is to an asset account,then the credit portion must be to a liability account.

Prepaid expenses are eventually expected to become

The net income reported on the income statement is $58,000.However,adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $1,300.Net income,as corrected,is

Adjusting journal entries are dated on the last day of the period.

The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n)

Accumulated depreciation is reported on the income statement.

The difference between deferred revenue and accrued revenue is that accrued revenue has been recorded and needs adjusting and deferred revenue has never been recorded.

Which of the accounting steps in the accounting process below would be completed last?

A one-year insurance policy was purchased on June 1 for $2,400.The adjusting entry on December 31 would be:

Depreciation on an office building is $2,800.The adjusting entry on December 31 would be

Which account would normally not require an adjusting entry?

A company pays an employee $3,000 for a five-day work week,Monday-Friday.The adjusting entry on December 31,which is a Wednesday,is a debit to Wages Expense,$1,800,and a credit to Wages Payable,$1,800.

Deferrals are recorded transactions that delay the recognition of an expense or revenue.

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