Question 1

Generally accepted accounting principles require accrual-basis accounting.

Accepted Answer

A) True 
 B)False

Question 2

Accrued revenues would appear on the balance sheet as

Accepted Answer

A) assets 
B) liabilities 
C) common stock 
D) prepaid expenses

Question 3

Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n)

Accepted Answer

A) asset 
B) liability 
C) contra asset 
D) stockholders' equity

Question 4

What is the correct debit and credit to record the adjusting entry for $800 of fees earned but not yet billed or paid?

Accepted Answer

A) debit Accounts Receivable and credit Fees Earned for $800 
B) debit Fees Earned and credit Accounts Receivable for $800 
C) debit Unearned Income and credit Fees Earned for $800 
D) debit Fees Earned and credit Unearned Income for $800

Question 5

Classify the following items as: (1) prepaid expense, (2) unearned revenue, (3) accrued expense, or (4) accrued revenue.​
a) fees received but not yet earned
b) fees earned but not yet received
c) paid premium on a one-year insurance policy
d) property tax owed to be paid beginning of next year

Accepted Answer

The answer of Classify the following items as: (1) prepaid...

Question 6

A company depreciates its equipment $500 a year. The adjusting entry on December 31 is a debit to Depreciation Expense, $500, and a credit to Equipment, $500.

Accepted Answer

A) True 
 B)False

Question 7

The balance in the office supplies account on January 1 was $7,000, supplies purchased during January were $3,000, and the supplies on hand at January 31 were $2,000. The amount to be used for the appropriate adjusting entry is

Accepted Answer

A) $4,300 
B) $12,000 
C) $5,000 
D) $8,000

Question 8

The adjustment for accrued fees was debited to Accounts Payable instead of Accounts Receivable. This error will be detected when the adjusted trial balance is prepared.

Accepted Answer

A) True 
 B)False

Question 9

Accumulated depreciation is reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 10

A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day. The last payday of December is Friday, December 27. Assume the next pay period begins on Monday, December 30, and the proper adjusting entry is journalized at the end of the fiscal period (December 31). The entry for the payment of the payroll on Friday, January 10, includes a

Accepted Answer

A) debit to Salary Expense of $16,000 
B) debit to Salary Expense of $4,000 
C) credit to Salaries Payable of $16,000 
D) credit to Salaries Payable of $4,000

Question 11

Match the type of account (a - e) with the business transactions that follow.
-Annual depreciation on equipment, recorded on a monthly basis.
A)Prepaid expense
B)Accrued expense
C)Unearned revenue
D)Accrued revenue
E)None of these

Accepted Answer

The answer of Match the type of account (a -...

Question 12

Prepare the December 31 adjusting entries for the following transactions. Omit explanations.1. Fees accrued but not billed, $6,300
2. The Supplies account balance on December 31, $4,750; Supplies on hand, $960
3. Wages accrued but not paid, $2,700
4. Depreciation of office equipment, $1,650
5. Rent expired during year, $10,800

Accepted Answer

The answer of Prepare the December 31 adjusting entries for...

Question 13

The type of account and normal balance of Unearned Fees is

Accepted Answer

A) revenue, credit 
B) expense, debit 
C) liability, credit 
D) liability, debit

Question 14

If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n)

Accepted Answer

A) deferral 
B) accrual 
C) dividend 
D) revenue

Question 15

The balance in the accumulated depreciation account is the sum of the depreciation expense recorded in past periods.

Accepted Answer

A) True 
 B)False

Question 16

Indicate with a Yes or No whether or not each of the following accounts would, under normal circumstances, require an adjusting entry.1. Cash
2. Prepaid Expenses
3. Depreciation Expense
4. Accounts Payable
5. Accumulated Depreciation
6. Equipment

Accepted Answer

The answer of Indicate with a Yes or No whether...

Question 17

The unexpired insurance at the end of the fiscal period represents

Accepted Answer

A) an accrued asset 
B) an accrued liability 
C) an accrued expense 
D) a deferred expense

Question 18

Which of the accounting steps in the accounting process below would be completed last?

Accepted Answer

A) preparing the adjusted trial balance 
B) posting 
C) preparing the financial statements 
D) journalizing

Question 19

Fees payable would appear on the balance sheet as a(n)

Accepted Answer

A) asset 
B) liability 
C) fixed asset 
D) unearned revenue

Question 20

Jordon James started JJJ Consulting on January 1. The following are the account balances at the end of the first month of business, before adjusting entries were recorded:  Adjustment data:
Supplies on hand at the end of the month, $200
Unbilled consulting revenue, $700
Rent expense for the month, $1,000
Depreciation on equipment, $90
(a) Prepare the required adjusting entries, adding accounts as needed.(b) Prepare an adjusted trial balance for JJJ Consulting as of January 31.​

Accepted Answer

The answer of Jordon James started JJJ Consulting on January...

Exam 3: The Adjusting Process

Generally accepted accounting principles require accrual-basis accounting.

Accrued revenues would appear on the balance sheet as

Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n)

What is the correct debit and credit to record the adjusting entry for $800 of fees earned but not yet billed or paid?

Classify the following items as: (1) prepaid expense, (2) unearned revenue, (3) accrued expense, or (4) accrued revenue. a) fees received but not yet earned b) fees earned but not yet received c) paid premium on a one-year insurance policy d) property tax owed to be paid beginning of next year

A company depreciates its equipment $500 a year. The adjusting entry on December 31 is a debit to Depreciation Expense, $500, and a credit to Equipment, $500.

The balance in the office supplies account on January 1 was $7,000, supplies purchased during January were $3,000, and the supplies on hand at January 31 were $2,000. The amount to be used for the appropriate adjusting entry is

The adjustment for accrued fees was debited to Accounts Payable instead of Accounts Receivable. This error will be detected when the adjusted trial balance is prepared.

Accumulated depreciation is reported on the income statement.

Match the type of account (a - e) with the business transactions that follow. -Annual depreciation on equipment, recorded on a monthly basis. A)Prepaid expense B)Accrued expense C)Unearned revenue D)Accrued revenue E)None of these

The type of account and normal balance of Unearned Fees is

If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n)

The balance in the accumulated depreciation account is the sum of the depreciation expense recorded in past periods.

Indicate with a Yes or No whether or not each of the following accounts would, under normal circumstances, require an adjusting entry.1. Cash 2. Prepaid Expenses 3. Depreciation Expense 4. Accounts Payable 5. Accumulated Depreciation 6. Equipment

The unexpired insurance at the end of the fiscal period represents

Which of the accounting steps in the accounting process below would be completed last?

Fees payable would appear on the balance sheet as a(n)

Exam 3: The Adjusting Process

Generally accepted accounting principles require accrual-basis accounting.

Accrued revenues would appear on the balance sheet as

Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n)

What is the correct debit and credit to record the adjusting entry for $800 of fees earned but not yet billed or paid?

Classify the following items as: (1) prepaid expense, (2) unearned revenue, (3) accrued expense, or (4) accrued revenue.​ a) fees received but not yet earned b) fees earned but not yet received c) paid premium on a one-year insurance policy d) property tax owed to be paid beginning of next year

A company depreciates its equipment $500 a year. The adjusting entry on December 31 is a debit to Depreciation Expense, $500, and a credit to Equipment, $500.

The balance in the office supplies account on January 1 was $7,000, supplies purchased during January were $3,000, and the supplies on hand at January 31 were $2,000. The amount to be used for the appropriate adjusting entry is

The adjustment for accrued fees was debited to Accounts Payable instead of Accounts Receivable. This error will be detected when the adjusted trial balance is prepared.

Accumulated depreciation is reported on the income statement.

Match the type of account (a - e) with the business transactions that follow. -Annual depreciation on equipment, recorded on a monthly basis. A)Prepaid expense B)Accrued expense C)Unearned revenue D)Accrued revenue E)None of these

The type of account and normal balance of Unearned Fees is

If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n)

The balance in the accumulated depreciation account is the sum of the depreciation expense recorded in past periods.

Indicate with a Yes or No whether or not each of the following accounts would, under normal circumstances, require an adjusting entry.1. Cash 2. Prepaid Expenses 3. Depreciation Expense 4. Accounts Payable 5. Accumulated Depreciation 6. Equipment

The unexpired insurance at the end of the fiscal period represents

Which of the accounting steps in the accounting process below would be completed last?

Fees payable would appear on the balance sheet as a(n)

Classify the following items as: (1) prepaid expense, (2) unearned revenue, (3) accrued expense, or (4) accrued revenue. a) fees received but not yet earned b) fees earned but not yet received c) paid premium on a one-year insurance policy d) property tax owed to be paid beginning of next year