Question 1

The accountant failed to make the adjusting entry to record the unpaid wages of its employees as of December 31. This error will cause

Accepted Answer

A)  an overstatement of assets, liabilities, and owners' equity 
B)  an understatement of expenses, liabilities, and owners' equity 
C)  an understatement of liabilities and an overstatement of owners' equity 
D)  an understatement of assets and liabilities 
A)  an overstatement of assets, liabilities, and owners' equity 
B)  an understatement of expenses, liabilities, and owners' equity 
C)  an understatement of liabilities and an overstatement of owners' equity 
D)  an understatement of assets and liabilities

Question 2

The trial balance does help find some errors but not if a transaction has not been posted, or if it was posted twice.

Accepted Answer

A) True 
 B)False

Question 3

Accrued revenues

Accepted Answer

A)  have been earned and collected, but not yet recorded 
B)  have been collected, but not yet earned or recorded 
C)  have been collected and recorded 
D)  have been earned, but not yet collected or recorded 
A)  have been earned and collected, but not yet recorded 
B)  have been collected, but not yet earned or recorded 
C)  have been collected and recorded 
D)  have been earned, but not yet collected or recorded

Question 4

The basic purpose of a trial balance is to

Accepted Answer

A)  list all of the accounts in the general ledger 
B)  list all of the accounts in the general ledger that have a balance 
C)  be sure that all journal entries have been recorded 
D)  verify that the total credits equal the total debits 
A)  list all of the accounts in the general ledger 
B)  list all of the accounts in the general ledger that have a balance 
C)  be sure that all journal entries have been recorded 
D)  verify that the total credits equal the total debits

Question 5

When a company uses cash-basis accounting, it frequently does NOT keep up with

Accepted Answer

A)  accounts receivable 
B)  accounts payable 
C)  prepaid expenses 
D)  the company keeps up with all of the above 
A)  accounts receivable 
B)  accounts payable 
C)  prepaid expenses 
D)  the company keeps up with all of the above

Question 6

On February 1, 2014, Apollo Company received $24,000 in advance for a three-year rental of land, and credited Rent Revenue. The correct December 31, 2014 adjusting entry would be

Accepted Answer

A)  Unearned Rent 16,667 
Rent Revenue 16,667 
B)  Rent Revenue 16,667
 Unearned Rent 16,667 
C)  Unearned Rent 7,333 
Rent Revenue 7,333 
D)  Rent Revenue 7,333 
Unearned Rent 7,333 
A)  Unearned Rent 16,667 
Rent Revenue 16,667 
B)  Rent Revenue 16,667
 Unearned Rent 16,667 
C)  Unearned Rent 7,333 
Rent Revenue 7,333 
D)  Rent Revenue 7,333 
Unearned Rent 7,333

The accountant failed to make the adjusting entry to record the unpaid wages of its employees as of December 31. This error will cause

The trial balance does help find some errors but not if a transaction has not been posted, or if it was posted twice.

Accrued revenues

The basic purpose of a trial balance is to

When a company uses cash-basis accounting, it frequently does NOT keep up with

On February 1, 2014, Apollo Company received $24,000 in advance for a three-year rental of land, and credited Rent Revenue. The correct December 31, 2014 adjusting entry would be

The Demand for and Supply of Financial Accounting Information

Financial Reporting: Its Conceptual Framework

The Balance Sheet and the Statement of Shareholders Equity

The Income Statement and the Statement of Cash Flows

Cash and Receivables

Inventories: Cost Measurement and Flow Assumptions

Inventories: Special Valuation Issues

Current Liabilities and Contingencies

Property, Plant, and Equipment: Acquisition and Subsequent Investments

Depreciation, Depletion, Impairment, and Disposal

Intangibles

Investments and Long-Term Receivables

Financing Liabilities: Bonds and Notes Payable

Contributed Capital

Retained Earnings and Earnings Per Share

Advanced Issues in Revenue Recognition

Accounting for Income Taxes

Accounting for Postretirement Benefits

Accounting for Leases

The Statement of Cash Flows

Accounting for Changes and Errors

Time Value of Money Module

Filters

Exam 3: Review of a Companys Accounting System

The accountant failed to make the adjusting entry to record the unpaid wages of its employees as of December 31. This error will cause

The trial balance does help find some errors but not if a transaction has not been posted, or if it was posted twice.

Accrued revenues

The basic purpose of a trial balance is to

When a company uses cash-basis accounting, it frequently does NOT keep up with

On February 1, 2014, Apollo Company received $24,000 in advance for a three-year rental of land, and credited Rent Revenue. The correct December 31, 2014 adjusting entry would be

The Demand for and Supply of Financial Accounting Information

Financial Reporting: Its Conceptual Framework

The Balance Sheet and the Statement of Shareholders Equity

The Income Statement and the Statement of Cash Flows

Cash and Receivables

Inventories: Cost Measurement and Flow Assumptions

Inventories: Special Valuation Issues

Current Liabilities and Contingencies

Property, Plant, and Equipment: Acquisition and Subsequent Investments

Depreciation, Depletion, Impairment, and Disposal

Intangibles

Investments and Long-Term Receivables

Financing Liabilities: Bonds and Notes Payable

Contributed Capital

Retained Earnings and Earnings Per Share

Advanced Issues in Revenue Recognition

Accounting for Income Taxes

Accounting for Postretirement Benefits

Accounting for Leases

The Statement of Cash Flows

Accounting for Changes and Errors

Time Value of Money Module

Filters