Exam 4: The Accounting Cycle: Accruals and Deferrals

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Tuna Co.purchased a building in 2015 for $650,000 and debited an asset called "Buildings" for the entire amount.The company never depreciated the building although it had a useful life of 15 years.At the end of 2015,this action will cause:

(Multiple Choice)

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Question 101

We can compare income of the current period with income of a previous period to determine whether the operating results are improving or declining:

(Multiple Choice)

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Question 102

Which of the following is not a purpose of adjusting entries?

(Multiple Choice)

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Question 103

Adjusting entries Selected ledger accounts used by American Advertising,Inc.,are listed along with identifying numbers.Following this list of account numbers and titles is a series of transactions.For each transaction,you are to indicate the proper accounts to be debited and credited.

(Essay)

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Question 104

Which of the following statements regarding depreciation is correct?

(Multiple Choice)

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Question 105

Which of the following entries causes an immediate decrease in assets and in net income?

(Multiple Choice)

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Question 106

Which of the following is the accounting principle that governs the timing of revenue recognition?

(Multiple Choice)

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Question 107

On the adjusted trial balance,retained earnings is:

(Multiple Choice)

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Question 108

Unearned revenue may also be called:

(Multiple Choice)

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Question 109

Which of the following is considered an adjusting entry?

(Multiple Choice)

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Question 110

Materiality (A.)Identify several factors considered by an accountant in deciding whether an item is "material." (B.)Does the concept of materiality complicate or simplify the process of making adjusting entries? Give an illustration to support your answer.

(Essay)

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Question 111

As of January 31,Princess Company owes $500 to Butler Co.for equipment rented during January.If no adjustment is made for this item at January 31,how will Princess's financial statements be affected?

(Multiple Choice)

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Question 112

Accumulated Depreciation is:

(Multiple Choice)

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Question 113

When a company receives cash in advance and is obligated to provide a service or a product in the future,the entry would be a debit to a revenue account and a credit to a liability account.

(True/False)

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Question 114

Which of the following is not an example of an adjusting entry?

(Multiple Choice)

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Question 115

Under accrual accounting,salaries earned by employees but not yet paid should be expensed:

(Multiple Choice)

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Question 116

The balance of an unearned revenue account:

(Multiple Choice)

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Question 117

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Exam 4: The Accounting Cycle: Accruals and Deferrals

Tuna Co.purchased a building in 2015 for $650,000 and debited an asset called "Buildings" for the entire amount.The company never depreciated the building although it had a useful life of 15 years.At the end of 2015,this action will cause:

We can compare income of the current period with income of a previous period to determine whether the operating results are improving or declining:

Which of the following is not a purpose of adjusting entries?

Adjusting entries Selected ledger accounts used by American Advertising,Inc.,are listed along with identifying numbers.Following this list of account numbers and titles is a series of transactions.For each transaction,you are to indicate the proper accounts to be debited and credited.

Which of the following statements regarding depreciation is correct?

Which of the following entries causes an immediate decrease in assets and in net income?

Which of the following is the accounting principle that governs the timing of revenue recognition?

On the adjusted trial balance,retained earnings is:

Unearned revenue may also be called:

Which of the following is considered an adjusting entry?

Materiality (A.)Identify several factors considered by an accountant in deciding whether an item is "material." (B.)Does the concept of materiality complicate or simplify the process of making adjusting entries? Give an illustration to support your answer.

As of January 31,Princess Company owes $500 to Butler Co.for equipment rented during January.If no adjustment is made for this item at January 31,how will Princess's financial statements be affected?

Accumulated Depreciation is:

When a company receives cash in advance and is obligated to provide a service or a product in the future,the entry would be a debit to a revenue account and a credit to a liability account.

Which of the following is not an example of an adjusting entry?

Under accrual accounting,salaries earned by employees but not yet paid should be expensed:

The balance of an unearned revenue account:

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting: a Business Partner

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

Forms of Business Organization

The Time Value of Money: Future Amounts and Present Values

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