Question 1

Prepaid Rent was $800 at the end of May and $1,300 at the end of June.Rent Expense for June was $720.How much cash was paid for rent during June?

Accepted Answer

A) $820 
B) $1,020 
C) $1,220 
D) $1,420 
A) $820 
B) $1,020 
C) $1,220 
D) $1,420

Question 2

Which of the following accounts most likely would be found on both a trial balance and an adjusted trial balance?

Accepted Answer

A) Utilities Expense 
B) Insurance Expense 
C) Supplies Expense 
D) Depreciation Expense-Equipment 
A) Utilities Expense 
B) Insurance Expense 
C) Supplies Expense 
D) Depreciation Expense-Equipment

Question 3

The intentional preparation of misleading financial statements is referred to as fraudulent financial reporting.

Accepted Answer

A) True 
 B)False

Question 4

Failure to adjust for expired prepaid insurance at year end will result in an

Accepted Answer

A) overstatement of liabilities. 
B) understatement of assets. 
C) understatement of owner's equity. 
D) overstatement of net income. 
A) overstatement of liabilities. 
B) understatement of assets. 
C) understatement of owner's equity. 
D) overstatement of net income.

Question 5

In accounting,depreciation refers to the decline in fair value of a plant asset.

Accepted Answer

A) True 
 B)False

Question 6

Almost every revenue or expense account on the income statement has one or more related accounts on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 7

As an asset's depreciation is recorded,its carrying value decreases.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is an application of accrual accounting?

Accepted Answer

A) Depreciating a building as quickly as allowed by income tax regulations. 
B) Recording utilities expense in the accounting period covered by the monthly bill. 
C) Expensing a machine in its entirety when purchased. 
D) Recording revenue at the time payment is received. 
A) Depreciating a building as quickly as allowed by income tax regulations. 
B) Recording utilities expense in the accounting period covered by the monthly bill. 
C) Expensing a machine in its entirety when purchased. 
D) Recording revenue at the time payment is received.

Question 9

Due to the recording of adjusting entries,the dollar amount of Cash on the trial balance is usually less than the dollar amount of Cash on the adjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 10

Office Supplies was $1,800 at the end of January and $2,280 at the end of February.During February,Office Supplies Expense equaled $560.How much cash was paid for office supplies during February?

Accepted Answer

A) $440 
B) $2,840 
C) $3,440 
D) $1,040 
A) $440 
B) $2,840 
C) $3,440 
D) $1,040

Question 11

Which of the following situations is not an example of a deferral?

Accepted Answer

A) Recording supplies consumed. 
B) Recording unrecorded,earned revenues. 
C) Recording depreciation. 
D) Recording the portion of prepaid rent that has expired. 
A) Recording supplies consumed. 
B) Recording unrecorded,earned revenues. 
C) Recording depreciation. 
D) Recording the portion of prepaid rent that has expired.

Question 12

Equipment might be depreciated over 15 years because

Accepted Answer

A) it will lose most of its market value in 15 years. 
B) it will be paid for in 15 years. 
C) it will help to generate revenue for the company over 15 years. 
D) income tax provisions require depreciation over 15 years. 
A) it will lose most of its market value in 15 years. 
B) it will be paid for in 15 years. 
C) it will help to generate revenue for the company over 15 years. 
D) income tax provisions require depreciation over 15 years.

Question 13

Which of the following accounts would likely not need to be adjusted at year end?

Accepted Answer

A) Equipment 
B) Prepaid Insurance 
C) Supplies 
D) Owner's Withdrawals 
A) Equipment 
B) Prepaid Insurance 
C) Supplies 
D) Owner's Withdrawals

Question 14

Accrual accounting recognizes revenues and expenses at the point that cash changes hands.

Accepted Answer

A) True 
 B)False

Question 15

The heading of an adjusted trial balance might contain the line "For the Month Ended May 31,20xx."

Accepted Answer

A) True 
 B)False

Question 16

A revenue for which the service has been performed but that has not been recorded is a deferred revenue.

Accepted Answer

A) True 
 B)False

Question 17

An adjusting entry would not include which of the following accounts?

Accepted Answer

A) Salaries Payable 
B) Unearned Revenue 
C) Interest Receivable 
D) Cash 
A) Salaries Payable 
B) Unearned Revenue 
C) Interest Receivable 
D) Cash

Question 18

Direct cause-and-effect relationships between revenues and costs can usually be demonstrated.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an example of an accrual?

Accepted Answer

A) Debit Office Supplies Expense,credit Office Supplies 
B) Debit Wages Expense,credit Wages Payable 
C) Debit Rent Expense,credit Prepaid Rent 
D) Debit Unearned Revenue,credit Service Revenue 
A) Debit Office Supplies Expense,credit Office Supplies 
B) Debit Wages Expense,credit Wages Payable 
C) Debit Rent Expense,credit Prepaid Rent 
D) Debit Unearned Revenue,credit Service Revenue

Question 20

Which of the following is correct regarding accrual accounting?

Accepted Answer

A) Adjusting the accounts is a technique used to accomplish accural accounting. 
B) Revenues are recorded when received. 
C) Expenses are recorded when earned. 
D) Net income is the difference between cash receipts from customers and cash payments for expenses. 
A) Adjusting the accounts is a technique used to accomplish accural accounting. 
B) Revenues are recorded when received. 
C) Expenses are recorded when earned. 
D) Net income is the difference between cash receipts from customers and cash payments for expenses.

Prepaid Rent was $800 at the end of May and $1,300 at the end of June.Rent Expense for June was $720.How much cash was paid for rent during June?

Which of the following accounts most likely would be found on both a trial balance and an adjusted trial balance?

The intentional preparation of misleading financial statements is referred to as fraudulent financial reporting.

Failure to adjust for expired prepaid insurance at year end will result in an

In accounting,depreciation refers to the decline in fair value of a plant asset.

Almost every revenue or expense account on the income statement has one or more related accounts on the balance sheet.

As an asset's depreciation is recorded,its carrying value decreases.

Which of the following is an application of accrual accounting?

Due to the recording of adjusting entries,the dollar amount of Cash on the trial balance is usually less than the dollar amount of Cash on the adjusted trial balance.

Office Supplies was $1,800 at the end of January and $2,280 at the end of February.During February,Office Supplies Expense equaled $560.How much cash was paid for office supplies during February?

Which of the following situations is not an example of a deferral?

Equipment might be depreciated over 15 years because

Which of the following accounts would likely not need to be adjusted at year end?

Accrual accounting recognizes revenues and expenses at the point that cash changes hands.

The heading of an adjusted trial balance might contain the line "For the Month Ended May 31,20xx."

A revenue for which the service has been performed but that has not been recorded is a deferred revenue.

An adjusting entry would not include which of the following accounts?

Direct cause-and-effect relationships between revenues and costs can usually be demonstrated.

Which of the following is an example of an accrual?

Which of the following is correct regarding accrual accounting?

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters

Exam 3: Adjusting the Accounts

Prepaid Rent was $800 at the end of May and $1,300 at the end of June.Rent Expense for June was $720.How much cash was paid for rent during June?

Which of the following accounts most likely would be found on both a trial balance and an adjusted trial balance?

The intentional preparation of misleading financial statements is referred to as fraudulent financial reporting.

Failure to adjust for expired prepaid insurance at year end will result in an

In accounting,depreciation refers to the decline in fair value of a plant asset.

Almost every revenue or expense account on the income statement has one or more related accounts on the balance sheet.

As an asset's depreciation is recorded,its carrying value decreases.

Which of the following is an application of accrual accounting?

Due to the recording of adjusting entries,the dollar amount of Cash on the trial balance is usually less than the dollar amount of Cash on the adjusted trial balance.

Office Supplies was $1,800 at the end of January and $2,280 at the end of February.During February,Office Supplies Expense equaled $560.How much cash was paid for office supplies during February?

Which of the following situations is not an example of a deferral?

Equipment might be depreciated over 15 years because

Which of the following accounts would likely not need to be adjusted at year end?

Accrual accounting recognizes revenues and expenses at the point that cash changes hands.

The heading of an adjusted trial balance might contain the line "For the Month Ended May 31,20xx."

A revenue for which the service has been performed but that has not been recorded is a deferred revenue.

An adjusting entry would not include which of the following accounts?

Direct cause-and-effect relationships between revenues and costs can usually be demonstrated.

Which of the following is an example of an accrual?

Which of the following is correct regarding accrual accounting?

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters