Question 1

The net book value of a fixed asset is determined by

Accepted Answer

A)  original cost less accumulated depreciation 
B)  original cost less depreciation expense 
C)  original cost less accumulated depreciation plus depreciation expense 
D)  original cost plus accumulated depreciation 
A)  original cost less accumulated depreciation 
B)  original cost less depreciation expense 
C)  original cost less accumulated depreciation plus depreciation expense 
D)  original cost plus accumulated depreciation

Question 2

An adjusting entry to accrue an incurred expense will affect total liabilities.

Accepted Answer

A) True 
 B)False

Question 3

The difference between the balance of a fixed asset account and the balance of its related accumulated depreciation account is termed the book value of the asset.

Accepted Answer

A) True 
 B)False

Question 4

On January 2, Safe Boating Monthly received a check for $96 from a subscriber for a 12-month subscription. The January issue was mailed on January 15th. Prepare the necessary entries for the month of January.

Accepted Answer

@#IMG-DLM& @#IMG-DLM& The second entry can be made

Question 5

What is the purpose of the adjusted trial balance?

Accepted Answer

A) to verify that all of the adjusting entries have been posted B) to verify that the net income is correctly reported C) to verify that no adjusting journal entry has been omitted D) to verify the equality of the debit and credit balances A) to verify that all of the adjusting entries have been posted B) to verify that the net income is correctly reported C) to verify that no adjusting journal entry has been omitted D) to verify the equality of the debit and credit balances

Question 6

Which of the following pairs of accounts could not appear in the same adjusting entry?

Accepted Answer

A)  Service Revenue and Unearned Revenue 
B)  Interest Income and Interest Expense 
C)  Rent Expense and Prepaid Rent 
D)  Salaries Payable and Salaries Expense 
A)  Service Revenue and Unearned Revenue 
B)  Interest Income and Interest Expense 
C)  Rent Expense and Prepaid Rent 
D)  Salaries Payable and Salaries Expense

Question 7

Adjusting entries are made at the end of an accounting period to adjust accounts on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 8

Accumulated Depreciation is reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 9

Protonix Corp. has a payroll of $6,000 for a five-day workweek. Its employees are paid each Friday for the five-day workweek. The adjusting entry on December 31, 2011 assuming the year ends on Thursday would be

Accepted Answer

$6,000/5 =

Question 10

The revenue recognition concept

Accepted Answer

A)  is in not in conflict with the cash method of accounting 
B)  determines when revenue is credited to a revenue account 
C)  states that revenue is not recorded until the cash is received 
D)  controls all revenue reporting for the cash basis of accounting 
A)  is in not in conflict with the cash method of accounting 
B)  determines when revenue is credited to a revenue account 
C)  states that revenue is not recorded until the cash is received 
D)  controls all revenue reporting for the cash basis of accounting

Question 11

The updating of accounts is called the adjusting process.

Accepted Answer

A) True 
 B)False

Question 12

The type of account and normal balance of Accumulated Depreciation is

Accepted Answer

A)  asset, credit 
B)  asset, debit 
C)  contra asset, credit 
D)  contra asset, debit 
A)  asset, credit 
B)  asset, debit 
C)  contra asset, credit 
D)  contra asset, debit

Question 13

A one-year insurance policy was purchased on June 1, 2011 for $1,500. The adjusting entry on December 31, 2011 would be

Accepted Answer

$1,500/12

Question 14

The general term employed to indicate an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is

Accepted Answer

A)  capital 
B)  deferral 
C)  accrual 
D)  inventory 
A)  capital 
B)  deferral 
C)  accrual 
D)  inventory

Question 15

Prior to the adjusting process, accrued expenses have

Accepted Answer

A)  not yet been incurred, paid, or recorded 
B)  been incurred, not paid, but have been recorded 
C)  been incurred, not paid, and not recorded 
D)  been paid but have not yet been incurred 
A)  not yet been incurred, paid, or recorded 
B)  been incurred, not paid, but have been recorded 
C)  been incurred, not paid, and not recorded 
D)  been paid but have not yet been incurred

Question 16

Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n)

Accepted Answer

A)  asset 
B)  liability 
C)  contra asset 
D)  expense 
A)  asset 
B)  liability 
C)  contra asset 
D)  expense

Question 17

The matching concept

Accepted Answer

A)  addresses the relationship between the journal and the balance sheet 
B)  determines whether the normal balance of an account is a debit or credit 
C)  requires that the dollar amount of debits equal the dollar amount of credits on a trial balance 
D)  determines that expenses related to revenue be reported at the same time the revenue is reported 
A)  addresses the relationship between the journal and the balance sheet 
B)  determines whether the normal balance of an account is a debit or credit 
C)  requires that the dollar amount of debits equal the dollar amount of credits on a trial balance 
D)  determines that expenses related to revenue be reported at the same time the revenue is reported

Question 18

An example of deferred revenue is Unearned Rent.

Accepted Answer

A) True 
 B)False

Question 19

On January 2nd, Dog Mart prepaid $15,000 rent for the year and recorded the prepayment in an asset account. Prepare the January 31st adjusting entry for rent expense.

Accepted Answer

The answer of On January 2nd, Dog Mart prepaid $15,000...

Question 20

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

The net book value of a fixed asset is determined by

An adjusting entry to accrue an incurred expense will affect total liabilities.

The difference between the balance of a fixed asset account and the balance of its related accumulated depreciation account is termed the book value of the asset.

On January 2, Safe Boating Monthly received a check for $96 from a subscriber for a 12-month subscription. The January issue was mailed on January 15th. Prepare the necessary entries for the month of January.

What is the purpose of the adjusted trial balance?

Which of the following pairs of accounts could not appear in the same adjusting entry?

Adjusting entries are made at the end of an accounting period to adjust accounts on the balance sheet.

Accumulated Depreciation is reported on the income statement.

Protonix Corp. has a payroll of $6,000 for a five-day workweek. Its employees are paid each Friday for the five-day workweek. The adjusting entry on December 31, 2011 assuming the year ends on Thursday would be

The revenue recognition concept

The updating of accounts is called the adjusting process.

The type of account and normal balance of Accumulated Depreciation is

A one-year insurance policy was purchased on June 1, 2011 for $1,500. The adjusting entry on December 31, 2011 would be

The general term employed to indicate an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is

Prior to the adjusting process, accrued expenses have

Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n)

The matching concept

An example of deferred revenue is Unearned Rent.

On January 2nd, Dog Mart prepaid $15,000 rent for the year and recorded the prepayment in an asset account. Prepare the January 31st adjusting entry for rent expense.

The account type and normal balance of Unearned Revenue is

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 3: The Adjusting Process

The net book value of a fixed asset is determined by

An adjusting entry to accrue an incurred expense will affect total liabilities.

The difference between the balance of a fixed asset account and the balance of its related accumulated depreciation account is termed the book value of the asset.

On January 2, Safe Boating Monthly received a check for $96 from a subscriber for a 12-month subscription. The January issue was mailed on January 15th. Prepare the necessary entries for the month of January.

What is the purpose of the adjusted trial balance?

Which of the following pairs of accounts could not appear in the same adjusting entry?

Adjusting entries are made at the end of an accounting period to adjust accounts on the balance sheet.

Accumulated Depreciation is reported on the income statement.

Protonix Corp. has a payroll of $6,000 for a five-day workweek. Its employees are paid each Friday for the five-day workweek. The adjusting entry on December 31, 2011 assuming the year ends on Thursday would be

The revenue recognition concept

The updating of accounts is called the adjusting process.

The type of account and normal balance of Accumulated Depreciation is

A one-year insurance policy was purchased on June 1, 2011 for $1,500. The adjusting entry on December 31, 2011 would be

The general term employed to indicate an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is

Prior to the adjusting process, accrued expenses have

Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n)

The matching concept

An example of deferred revenue is Unearned Rent.

On January 2nd, Dog Mart prepaid $15,000 rent for the year and recorded the prepayment in an asset account. Prepare the January 31st adjusting entry for rent expense.

The account type and normal balance of Unearned Revenue is

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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