Question 1

The entry to record rent expense will include:

Accepted Answer

A) A debit to Prepaid Rent for $6,000. 
B) A credit to Prepaid Rent for $6,000. 
C) A credit to Prepaid Rent for $18,000. 
D) A debit to Prepaid Rent for $18,000. 
A) A debit to Prepaid Rent for $6,000. 
B) A credit to Prepaid Rent for $6,000. 
C) A credit to Prepaid Rent for $18,000. 
D) A debit to Prepaid Rent for $18,000.

Question 2

The United Shipping Co.borrowed $25,000 at 12% interest on March 1,2018.The note is to be repaid,with interest,in six months.If United Shipping makes monthly adjusting entries,which of the following is included as part of the March 31 adjusting entry?

Accepted Answer

A) Debit Interest Receivable $250. 
B) Credit Interest Payable $2,500 
C) Debit Interest Expense $250. 
D) Debit Interest Payable $250. 
A) Debit Interest Receivable $250. 
B) Credit Interest Payable $2,500 
C) Debit Interest Expense $250. 
D) Debit Interest Payable $250.

Question 3

Adjusting entries are usually made on a daily basis.

Accepted Answer

A) True 
 B)False

Question 4

Depreciation expense is:

Accepted Answer

A) Only an estimate. 
B) An exact calculation prepared by an appraiser. 
C) Not to be calculated unless the exact life of an asset can be determined. 
D) To be determined for all assets owned by a company. 
A) Only an estimate. 
B) An exact calculation prepared by an appraiser. 
C) Not to be calculated unless the exact life of an asset can be determined. 
D) To be determined for all assets owned by a company.

Question 5

If Hot Bagel Co.estimates depreciation on an automobile to be $578 for the year,the company should make the following adjusting entry:

Accepted Answer

A) Debit Accumulated Depreciation $578 and credit Depreciation Expense $578. 
B) Debit Depreciation Expense $578 and credit Automobile $578. 
C) Debit Depreciation Expense $578 and credit Accumulated Depreciation $578. 
D) Debit Automobile $578 and credit Depreciation Expense $578. 
A) Debit Accumulated Depreciation $578 and credit Depreciation Expense $578. 
B) Debit Depreciation Expense $578 and credit Automobile $578. 
C) Debit Depreciation Expense $578 and credit Accumulated Depreciation $578. 
D) Debit Automobile $578 and credit Depreciation Expense $578.

Question 6

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

Accepted Answer

A) The entry to record depreciation expense. 
B) The entry to record revenue earned but not yet received. 
C) The entry to record the earned portion of rent received in advance. 
D) The entry to record accrued wages payable. 
A) The entry to record depreciation expense. 
B) The entry to record revenue earned but not yet received. 
C) The entry to record the earned portion of rent received in advance. 
D) The entry to record accrued wages payable.

Question 7

Which of the following accounting principles is concerned with offsetting revenue with the expenses incurred in producing that revenue?

Accepted Answer

A) Realization principle 
B) Materiality 
C) Matching 
D) Depreciation 
A) Realization principle 
B) Materiality 
C) Matching 
D) Depreciation

Question 8

Every adjusting entry involves the recognition of either revenue or an expense.

Accepted Answer

A) True 
 B)False

Question 9

In which of the following situations would Daystar Company record unearned revenue in May?

Accepted Answer

A) In April,Daystar Company received payment from a customer for services that are performed in May. 
B) Daystar Company completes a job for a customer in May;payment will be received in June. 
C) Daystar Company is paid on May 25 for work done in the first two weeks of May. 
D) Daystar Company receives payment in May for work to be performed in June and July. 
A) In April,Daystar Company received payment from a customer for services that are performed in May. 
B) Daystar Company completes a job for a customer in May;payment will be received in June. 
C) Daystar Company is paid on May 25 for work done in the first two weeks of May. 
D) Daystar Company receives payment in May for work to be performed in June and July.

Question 10

The cost of insurance is considered an expense:

Accepted Answer

A) Only when the entire policy period has passed. 
B) Only when the policy is purchased. 
C) Only when the premium is paid. 
D) Evenly over the term of the policy. 
A) Only when the entire policy period has passed. 
B) Only when the policy is purchased. 
C) Only when the premium is paid. 
D) Evenly over the term of the policy.

Question 11

Wages are an expense to the employer when earned,rather than when paid.

Accepted Answer

A) True 
 B)False

The entry to record rent expense will include:

The United Shipping Co.borrowed $25,000 at 12% interest on March 1,2018.The note is to be repaid,with interest,in six months.If United Shipping makes monthly adjusting entries,which of the following is included as part of the March 31 adjusting entry?

Adjusting entries are usually made on a daily basis.

Depreciation expense is:

If Hot Bagel Co.estimates depreciation on an automobile to be $578 for the year,the company should make the following adjusting entry:

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

Which of the following accounting principles is concerned with offsetting revenue with the expenses incurred in producing that revenue?

Every adjusting entry involves the recognition of either revenue or an expense.

In which of the following situations would Daystar Company record unearned revenue in May?

The cost of insurance is considered an expense:

Wages are an expense to the employer when earned,rather than when paid.

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

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

the Time Value of Money: Future Amounts and Present Values

Forms of Business Organization

Filters

Exam 4: The Accounting Cycle: Accruals and Deferrals

The entry to record rent expense will include:

The United Shipping Co.borrowed $25,000 at 12% interest on March 1,2018.The note is to be repaid,with interest,in six months.If United Shipping makes monthly adjusting entries,which of the following is included as part of the March 31 adjusting entry?

Adjusting entries are usually made on a daily basis.

Depreciation expense is:

If Hot Bagel Co.estimates depreciation on an automobile to be $578 for the year,the company should make the following adjusting entry:

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

Which of the following accounting principles is concerned with offsetting revenue with the expenses incurred in producing that revenue?

Every adjusting entry involves the recognition of either revenue or an expense.

In which of the following situations would Daystar Company record unearned revenue in May?

The cost of insurance is considered an expense:

Wages are an expense to the employer when earned,rather than when paid.

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

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

the Time Value of Money: Future Amounts and Present Values

Forms of Business Organization

Filters