Exam 3: Adjusting the Accounts

Which of the following transactions is most likely not to result in an adjusting entry at the end of the period?

Net income results when expenses exceed revenues.

Revenue should be recognized,even when collectibility is not reasonably assured.

The going concern assumption helps solve the

The adjusting entry for the expiration of prepaid advertising,originally recorded as an asset,

Which of the following accounts could increase as a result of adjusting entries?

Which of the following accounts would be found on the debit side of the adjusted trial balance?

All decreases in owner's equity are a result of expenses.

Net income is misleading when revenue is overstated or expenses are understated by significant amounts.

Accrual accounting is an application of the matching rule.

The principal difference between depreciation expense and most other types of expenses is that

A company recorded office supplies in an asset account when the supplies were purchased.Failure to take inventory and make an adjusting entry will result in an

The corporation's Supplies account showed a beginning debit balance of $400 and supplies purchased of $1,600.There were $600 of supplies on hand at year end. 2.Depreciation on a building being depreciated over 5 years is estimated to be $10,000 per year.The building was purchased at the beginning of the prior year for $50,000. 3)A one-year insurance policy was purchased for $4,800.Five months have passed since the purchase. 4)Accrued interest on a note receivable amounted to $200. 5)The company received a $3,600 advance payment during the year on services to be performed.By the end of the year,one-third of the services had been performed. Which of the following statements is correct regarding the building?

Unearned Revenue was $600 at the end of February and $750 at the end of March.Service Revenue was $3,600 for the month of March.How much cash was received from revenue during March?

The Supplies account had a $720 debit balance at the end of the accounting period before adjustment for supplies used,and an inventory of $160 of unused supplies was on hand.Which of the following is the required adjusting entry?

Which of the following is not one of the conditions for recognition of an expense?

The primary purpose of an expense is to generate revenue.

Which of the following conditions is not a requirement by the SEC for the recognition of revenue?

Which of the following transactions will result in the recognition of an expense?

For each of the following oversights,state whether total assets will be understated,overstated,or not affected. ______ a.Failure to record revenue earned but not yet received ______ b.Failure to record expired rent ______ c.Failure to record accrued interest in the bank ______ d.Failure to record depreciation ______ e.Failure to record accrued wages ______ f.Failure to convert unearned revenue to earned revenue