Question 1

Which of the following assets is not depreciated?

Accepted Answer

A)  Store fixtures. 
B)  Computers. 
C)  Land. 
D)  Buildings. 
E)  Trucks. 
A)  Store fixtures. 
B)  Computers. 
C)  Land. 
D)  Buildings. 
E)  Trucks.

Question 2

HCF,a finance company,lends Able Business $12,000 at 5% on December 1,2015.HCF's adjusting entry on December 31,2015,should include:

Accepted Answer

A)  A debit to Interest Earned for $50. 
B)  A credit to Interest Receivable for $50. 
C)  A credit to Interest Earned for $50. 
D)  A debit to Cash for $600. 
E)  A debit to Interest Expense for $600. 
A)  A debit to Interest Earned for $50. 
B)  A credit to Interest Receivable for $50. 
C)  A credit to Interest Earned for $50. 
D)  A debit to Cash for $600. 
E)  A debit to Interest Expense for $600.

Question 3

The premium on a three-year insurance policy purchased on June 30,2015,was $36,000.What is the amount of insurance expense that should be presented on the company's income statement for the year ended December 31,2015?

Accepted Answer

A)  $500. 
B)  $1,000. 
C)  $3,000. 
D)  $6,000. 
E)  $8,000. 
A)  $500. 
B)  $1,000. 
C)  $3,000. 
D)  $6,000. 
E)  $8,000.

Question 4

Accrued revenues at the end of one period result in cash payments in a subsequent period.

Accepted Answer

A) True 
 B)False

Question 5

Before an adjusting entry for accrued salaries is made,the amount in Salaries Expense is understated and the amount in Salaries Payable is also understated.

Accepted Answer

A) True 
 B)False

Question 6

A business pays each of its two office employees each Friday at the rate of $60 per day for a five-day week that begins on Monday.If the accounting period ends on Tuesday and the employees worked on both Monday and Tuesday,the adjusting entry to record the salaries earned but unpaid is:

Accepted Answer

A)  Debit Unpaid Salaries $120 and credit Salaries Payable $120. 
B)  Debit Salaries Payable $240 and credit Office Salaries Expense $240. 
C)  Debit Office Salaries Expense $120 and credit Salaries Payable $120. 
D)  Debit Office Salaries Expense $240 and credit Salaries Payable $240. 
E)  Debit Salaries Expense $240 and credit Cash $240. 
A)  Debit Unpaid Salaries $120 and credit Salaries Payable $120. 
B)  Debit Salaries Payable $240 and credit Office Salaries Expense $240. 
C)  Debit Office Salaries Expense $120 and credit Salaries Payable $120. 
D)  Debit Office Salaries Expense $240 and credit Salaries Payable $240. 
E)  Debit Salaries Expense $240 and credit Cash $240.

Question 7

Which of the following statements is correct?

Accepted Answer

A)  Prepaid expenses,depreciation,and unearned revenues involve previously recorded assets and liabilities. 
B)  Accrued expenses and accrued revenues involve assets and liabilities that have not yet been recorded. 
C)  Adjusting entries are used to record both accrued expenses and accrued revenues 
D)  Prepaid expenses,depreciation,and unearned revenues require adjusting entries to record the effects of the passage of time. 
E)  All of these answers are correct. 
A)  Prepaid expenses,depreciation,and unearned revenues involve previously recorded assets and liabilities. 
B)  Accrued expenses and accrued revenues involve assets and liabilities that have not yet been recorded. 
C)  Adjusting entries are used to record both accrued expenses and accrued revenues 
D)  Prepaid expenses,depreciation,and unearned revenues require adjusting entries to record the effects of the passage of time. 
E)  All of these answers are correct.

Question 8

To correct the error in debiting use of supplies to Depreciation Expense

Accepted Answer

The answer of To correct the error in debiting use...

Question 9

______________________ are liabilities requiring delivery of products and services at a later date.

Accepted Answer

The answer of ______________________ are liabilities requiring delivery of products...

Question 10

Explain the difference between the book value and the market value of an asset.

Accepted Answer

The book value of an asset is its cost m

Question 11

Gallery Corp.paid $6,000 for a six-month insurance policy for the company van.The policy coverage began on January 1.On January 31,$1,000 of insurance expense must be reported.

Accepted Answer

A) True 
 B)False

Question 12

A company paid the $1,350 premium on a three-year insurance policy on April 1,2015.The policy gave protection beginning on that date.How many dollars of the premium will appear as an expense on the calendar year 2015 income statement assuming the accrual basis of accounting? Assuming the cash basis of accounting?

Accepted Answer

A)  $1,350 accrual basis; $337.50 cash basis. 
B)  $450 accrual basis; $450 cash basis. 
C)  $337.50 accrual basis; $1,350 cash basis. 
D)  $1,012.50 accrual basis; $1,350 cash basis. 
E)  $1,350 accrual basis; $1,350 cash basis. 
A)  $1,350 accrual basis; $337.50 cash basis. 
B)  $450 accrual basis; $450 cash basis. 
C)  $337.50 accrual basis; $1,350 cash basis. 
D)  $1,012.50 accrual basis; $1,350 cash basis. 
E)  $1,350 accrual basis; $1,350 cash basis.

Question 13

Discuss the types of adjusting entries used for prepaid expenses,depreciation,and unearned revenues.

Accepted Answer

Prepaid expenses are deferrals,or expens

Question 14

Accrued revenues at the end of one accounting period often result in cash _______________________ in the next period.

Accepted Answer

The answer of Accrued revenues at the end of one...

Question 15

Throughout an accounting period,the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees.If the accountant fails to make the end-of-period adjusting entry to record the portion of these fees that has been earned,one effect will be:

Accepted Answer

A)  An overstatement of equity. 
B)  An understatement of equity. 
C)  An understatement of assets. 
D)  An understatement of liabilities. 
E)  An overstatement of net income. 
A)  An overstatement of equity. 
B)  An understatement of equity. 
C)  An understatement of assets. 
D)  An understatement of liabilities. 
E)  An overstatement of net income.

Question 16

Prepare a statement of changes in equity from the adjusted trial balance above.Mr.Clausen's capital account balance of $30,520 consists of a $20,520 balance on January 1,2015,plus an additional $10,000 investment during 2015.

Accepted Answer

The answer of Prepare a statement of changes in equity...

Question 17

The _____________________ of the balance sheet lists the asset accounts on the left side and liabilities and equity on the right side.The ______________________ of the balance sheet lists items vertically with assets followed by liabilities then equity.

Accepted Answer

Account fo

Question 18

The amount that an asset can be sold for is called its _________________.

Accepted Answer

The answer of The amount that an asset can be...

Question 19

Accrued expenses at the end of one period result in cash payments in a subsequent period.

Accepted Answer

A) True 
 B)False

Question 20

Prepare general journal entries on December 31,2015 to record the following unrelated year-end adjustments.

Accepted Answer

The answer of Prepare general journal entries on December 31,2015...

Which of the following assets is not depreciated?

HCF,a finance company,lends Able Business $12,000 at 5% on December 1,2015.HCF's adjusting entry on December 31,2015,should include:

The premium on a three-year insurance policy purchased on June 30,2015,was $36,000.What is the amount of insurance expense that should be presented on the company's income statement for the year ended December 31,2015?

Accrued revenues at the end of one period result in cash payments in a subsequent period.

Before an adjusting entry for accrued salaries is made,the amount in Salaries Expense is understated and the amount in Salaries Payable is also understated.

A business pays each of its two office employees each Friday at the rate of $60 per day for a five-day week that begins on Monday.If the accounting period ends on Tuesday and the employees worked on both Monday and Tuesday,the adjusting entry to record the salaries earned but unpaid is:

Which of the following statements is correct?

To correct the error in debiting use of supplies to Depreciation Expense

______________________ are liabilities requiring delivery of products and services at a later date.

Explain the difference between the book value and the market value of an asset.

Gallery Corp.paid $6,000 for a six-month insurance policy for the company van.The policy coverage began on January 1.On January 31,$1,000 of insurance expense must be reported.

Discuss the types of adjusting entries used for prepaid expenses,depreciation,and unearned revenues.

Accrued revenues at the end of one accounting period often result in cash _______________________ in the next period.

Throughout an accounting period,the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees.If the accountant fails to make the end-of-period adjusting entry to record the portion of these fees that has been earned,one effect will be:

Prepare a statement of changes in equity from the adjusted trial balance above.Mr.Clausen's capital account balance of $30,520 consists of a $20,520 balance on January 1,2015,plus an additional $10,000 investment during 2015.

The _ of the balance sheet lists the asset accounts on the left side and liabilities and equity on the right side.The __ of the balance sheet lists items vertically with assets followed by liabilities then equity.

The amount that an asset can be sold for is called its _________________.

Accrued expenses at the end of one period result in cash payments in a subsequent period.

Prepare general journal entries on December 31,2015 to record the following unrelated year-end adjustments.

Accounting in Business

Analyzing and Reporting Transactions

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters

Exam 3: Adjusting Accounts for Financial Statements

Which of the following assets is not depreciated?

HCF,a finance company,lends Able Business $12,000 at 5% on December 1,2015.HCF's adjusting entry on December 31,2015,should include:

The premium on a three-year insurance policy purchased on June 30,2015,was $36,000.What is the amount of insurance expense that should be presented on the company's income statement for the year ended December 31,2015?

Accrued revenues at the end of one period result in cash payments in a subsequent period.

Before an adjusting entry for accrued salaries is made,the amount in Salaries Expense is understated and the amount in Salaries Payable is also understated.

A business pays each of its two office employees each Friday at the rate of $60 per day for a five-day week that begins on Monday.If the accounting period ends on Tuesday and the employees worked on both Monday and Tuesday,the adjusting entry to record the salaries earned but unpaid is:

Which of the following statements is correct?

To correct the error in debiting use of supplies to Depreciation Expense

______________________ are liabilities requiring delivery of products and services at a later date.

Explain the difference between the book value and the market value of an asset.

Gallery Corp.paid $6,000 for a six-month insurance policy for the company van.The policy coverage began on January 1.On January 31,$1,000 of insurance expense must be reported.

Discuss the types of adjusting entries used for prepaid expenses,depreciation,and unearned revenues.

Accrued revenues at the end of one accounting period often result in cash _______________________ in the next period.

Throughout an accounting period,the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees.If the accountant fails to make the end-of-period adjusting entry to record the portion of these fees that has been earned,one effect will be:

Prepare a statement of changes in equity from the adjusted trial balance above.Mr.Clausen's capital account balance of $30,520 consists of a $20,520 balance on January 1,2015,plus an additional $10,000 investment during 2015.

The _____________________ of the balance sheet lists the asset accounts on the left side and liabilities and equity on the right side.The ______________________ of the balance sheet lists items vertically with assets followed by liabilities then equity.

The amount that an asset can be sold for is called its _________________.

Accrued expenses at the end of one period result in cash payments in a subsequent period.

Prepare general journal entries on December 31,2015 to record the following unrelated year-end adjustments.

Accounting in Business

Analyzing and Reporting Transactions

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters

The _ of the balance sheet lists the asset accounts on the left side and liabilities and equity on the right side.The __ of the balance sheet lists items vertically with assets followed by liabilities then equity.