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(4) Depreciation of office equipment is based on an estimated useful life of five years. d. debit Salaries Expense; credit Salaries Payable, The supplies account had a balance of $4,400 at the beginning of the year and was debited during the year for $2,400, representing the total of supplies purchased during the year. exam ch11 Flashcards | Quizlet NOCCCD will not sponsor any visa applications. 20 Which of the following is not considered a basic type of adjusting b. Which of the assets does not match with the correct contra account? For example: making changes to the workplace. c) An entry to convert an asset to an expense. 1) On the adjusted trial balance, retained earnings is: 1) The purpose of adjusting entries is to: No adjusting entry should consist of: A debit to an expense and a credit to revenue. 1) Videobusters, Inc. offered books of video rental coupons to its patrons at $40 per book. d. debit Prepaid Rent, $8,000; credit Rent Expense, $8,000, 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. a. -Fees earned in March that had been collected in advance: $3,600. c. $2,800 c) Expenses decrease stockholders' equity. Accounts Receivable The entry to record the collection of accounts receivable c. The entry to record the purchase of equipment d. The entry to record bad debts expense for the period. c. debit Prepaid Insurance, $11,000; credit Insurance Expense, $11,000 c) Unexpired revenue. B) decreases net income and increases liabilities. Briefly summarize the meaning of this term and how it relates to an entity's financial statements. Depreciation Expense. c) Daystar Company is paid on May 25 for work done in the first two weeks of May. Identify each of the following as either an asset, a liability, or equity: (a) Prepaid Rent, (b) Unearned Fees, (c) Building, (d ) Wages Payable, (e) Office Supplies. When preparing the financial statements for the year ended October 31, accrued salaries owed to employees for October 30 and 31 were omitted. a) Are needed whenever revenue transactions affect more than one period. a. b. net income or loss will always be overestimated (2) The company's pays all employees up-to-date each Friday. B) Indicate which items will be erroneously stated, because of the error, on (A) the income statement for the year and (B) the balance sheet as of October 31. c) The entry to declare a dividend distribution. The financial statements will be accurate since the $500 does not have to be paid yet. d. debit Dividends, $12,000; credit Cash, $12,000, The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed Current liabilities c. Investments d. Long-term liabilities e. Property, plant, and equipment f. Which of the following is a section of the income statement? Project Topic Details . This problem has been solved! d) As an expense on the income statement. Which of the following is most likely not considered an adjusting entry? We level all printers as if everything is properly assembled, tightened, and adjusted. d) $2,560, 1) Which of the following accounting principles is concerned with offsetting revenue with the expenses incurred in producing that revenue? c. revenue Internal auditors. A. expenses and liabilities B. expenses and revenues C. revenues and liabilities D. expenses and assets, Which one of the following groups of accounts contains only assets? Norma Company records the payment by debiting Prepaid Rent $2,200 and crediting Cash $2,200. a. an increase in liabilities b. decrease in liabilities c. decrease in revenue d. increase in assets, Inventory held by a business is a(an) __________ and when sold becomes a(an) __________. 1) Gamma Company adjusts its accounts at the end of each month. 1) Which of the following is not a purpose of adjusting entries? Also indicate whether the items in error will be overstated or understated. Important Terms: Please Read Before Bidding! The monthly rent is $7,000. Accounting Ch. 3 Flashcards | Quizlet d) Expenses. a. prepaid (a) Asset impairment charges can be used to raise future reported income. List of Disabilities Covered Under ADA | UpCounsel 2023 Adjusting entries - explanation, purpose, types, examples | Accounting A large corporation is one having $1 million or more taxable income during any of its 3 preceding tax years. To ensure consistency and fairness to all applicants, please do not submit materials in addition to those requested. 35. b) $12,800 When recording this mortgage payment, the accountant should: d. at least one income statement account and one balance sheet account, Prepaid expenses are eventually expected to become Accounting - Chapter 4 Flashcards | Quizlet d. records revenues and expenses when the company needs to apply for a loan, By matching revenue earned during the accounting period to related incurred expenses An entry to convert an asset to a liability D. An entry to convert a liability to a revenueE. Assets, liabilities, and owner's equity. What category does capital belong to? Answered: Which of the following is most likely | bartleby What is the term for the basic tool of accounting, stated as Assets = Liabilities + Equity? These individuals were then invited to participate in an online survey in exchange for a $10 gift certificate. Unearned revenue. d) On January 1, Empire Company purchased delivery equipment with an estimated useful life of five years. b. Underrecording debt. A GPA adjustment may occur under one of the following conditions: How to Calculate Your . Liability c. Equity d. Revenue e. Expense, Identify the type of account for the following: Owner Withdrawals a. D) 1. Asset b. b. Go to the FASB website and access the FASB Concepts Statements and respond to the following items. Debit Interest Expense $250. a. (b) The entry to record the portion of fees received in advance, which have now been earned: $3,000. Which is an example of asset overstatement fraud? b) $113,620. A) Equity. This payment included interest charges of $6,300, $2,100 of which were applicable to the period from January 1 through January 10. c. debit Accounts Payable; credit Supplies The customer is unemployed and homeless. The first payment is to be received on February 15. Expenses increase stockholders' equity. Adjusting entries always affect at least one revenue or expense account and one asset or liability account. Where are the highest populations in Europe? C) trend projections. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: In a recent balance sheet, Microsoft Corporation reported Property, Plant, and Equipment of $27,804 million and Accumulated Depreciation of $14,793 million. B. A) Revenues and Liabilities B) Owners' Equity and Assets C) Liabilities and Expenses D) Assets and Expenses, Which of the following is not a correct expression of the accounting equation? (c) The entry to record the earned portion of rent received in. If the beginning balance of the Accumulated DepreciationEquipment account is $10,000 and an adjusting journal entry is recorded for depreciation on the equipment for $2,500, the balance of the accumulated depreciation account after the entry is recorded will be, If an entry to adjust depreciation is not recorded at the end of the period, Depreciation Expense on the income statement will be, If the following adjusting entry is omitted, what effect will it have on the financial statements? Note that the product can be found mentally, without the use of a calculator or pencil-and-paper calculations. a. net income or loss will always be underestimated Collection. To see how XOM's P/E ratio stacks up to its peers, refer to Google Finance's Related Companies screen. Which of the following is not a characteristic of the accrual basis of accounting? The correct term for the process of transferring amounts from a book of original entry to specific assets, liabilities, revenues, expenses, and stockholders' equity items is (select, Which of the following have debit balances? As with the other things we are calling a mental illness this problem needs to interfere with your ability to work or go to school . a) In April, Daystar Company received payment from a customer for services that are performed in May. (2) The company's pays all employees up to date each Friday. d. revenue, The unexpired insurance at the end of the fiscal period represents In fact, limiter faux pas are one of the easiest ways to undo a hard-earned mix. a. The list of disabilities covered under American with Disabilities Act (ADA) refers to all the disabilities for which an employee is protected from discrimination by employers. A debit to a liability and a credit to cash. Assets = Revenue + Expenses - Liabilities. b) Treats as material only those items that are greater than 2% or 3% of net income. c) Net income for Perfect Painting for 2018 is understated. b) Daystar Company completes a job for a customer in May; payment will be received in June. a) The entry to record the earned portion of rent received in advance. 1) Before making month-end adjustments, net income of Bobwhite Company was $232,000 for March. a) Assets b) Liabilities c) Owner Equity d) Expenditures, In accounting, what is the meaning of capitalized? (5) Fees of $9,800 were earned during the month for clients who had paid in advance. b) An entry to convert an asset to a liability. d. Accounts Receivable, If there is a balance in the prepaid rent account after adjusting entries are made, it represents a(n) A) exponential smoothing. a. 1. (1). A) d) Matching. Net income for January will be overstated. FromBalanceSheetsAccountsReceivableFromIncomeStatement:SalesDec. c) $1,200 cash dividends are declared and paid. The District may choose to fill one or more positions from this recruitment within six (6) months. Write offs - is not considered an adjustment. c. The concepts statements discuss the concept of "articulation" between financial statement elements. Current liabilities c. Investments d. Long-term liabilities e. Property, plant, a. Increase in liabilities and reduction in net income. ($4,800 / 12 = $400 * 1 / 2 = $200). c) Net income will be understated and total assets will be overstated. All rights reserved. 59) Which of the following is not a characteristic of trend projections? C. Liabilities that are assumed when cash is also, Multiple Choice 1. 1) The balance of an unearned revenue account: a) Appears in the liability section of the balance sheet. (Assume accrual basis accounting.) Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay. Define debit and credit and explain how assets, liabilities, common stock, retained earnings, revenues, expenses, and dividends are affected (increased or decreased) by debits and credits. The adjustment for depreciation of $3,545 was journalized as debit to Depreciation Expense for $3,454 and a credit to Accumulated Depreciation of $3,545. b) Consumed. (A), [1001][1652]\left[\begin{array}{ll}1 & 0 \\ 0 & 1\end{array}\right]\left[\begin{array}{rr}-1 & 6 \\ 5 & 2\end{array}\right] Which of the following will occur if an adjusting entry to record an unrecorded receivable is NOT made? Accrued salaries owed to employees for October 30 and 31 are not considered in preparing the financial statements for the year ended October 31. Vacancy code VA/2023/B5303/25590. answer choices Debit unearned revenue; credit revenue Debit insurance expense; credit pre-paid insurance Debit cash; credit unearned revenue Debit wages expense; credit wages payable Question 6 120 seconds Q. b. Debit Depreciation Expense $578 and credit Accumulated Depreciation $578. b) Net income will be understated and total assets will be understated. d. theater tickets sold for next month's performance, Which of the following is an example of accrued revenue? d. debit Insurance Expense, $11,000; credit Prepaid Insurance, $11,000, The entry to adjust for the cost of supplies used during the accounting period is d. recording of accrued revenue. (4) Depreciation of office equipment is based on an estimated useful life of five years. Purchased land for cash. b) An expense. d) Net income for Perfect Painting for 2018 is overstated. d. not earned but the cash has been received, Adjusting entries are b) It decreases net income and decreases assets. Which of the following may not be considered a "qualifying asset" under IAS 23? a) On March 31, a major customer paid his bill for a consulting job completed in February. During the month, Farad sold 50 trucks at an average price of $9,000 each. 1) Gordy's Corp. has seven employees. Find the matrix products. B. 31,2017AccountsReceivable$85,000$105,000FromIncomeStatement:2018Sales700,000\begin{array}{lrr} Generally accepted accounting principles require that companies use the ________ of accounting. (3) On December 1, rent on the office building had been paid for four months. a. cash basis a) Prepare the revenue and expense accounts for recording the revenue and expenses of the next accounting period. The entry to record revenue earned but not yet received c. The entry to record the earned portion of rent recei. Change in accrued wa, Which one of the following types of liabilities is not currently recognized on balance sheets? Which of the following is not considered a basic type of adjusting c. optional under generally accepted accounting principles a) Materiality a) Increase by $9,800. Candidate, HBA - naturium.pl e. None of the above. d) As a part of the retained earnings. c) The entry to record revenue earned but not yet received. Assets C. Owner's equity D. Liabilities, Which one of the following disclosures is required by generally accepted accounting principles? Question 1 Which of the following are considered the original "chronic eight" conditions from the 2008 Risk Adjustment Data Technical Assistance for Medicare Advantage Organizations Participation Guide? The following information has been assembled in order to prepare the required adjusting entries at December 31: Dentsply Sirona Reports Fourth Quarter and Full Year 2022 Results CHAPTER ONE. a. What are accrual adjusting entries? | AccountingCoach an agreement that has been signed for snow removal services for the next three months a) It increases expenses and does not affect assets. b) Liabilities of Perfect Painting are understated at December 31, 2018. c. theater tickets that were not sold for the current performance Borders and boundaries The boundaries of adjustment disorder are not well defined in the current classifications. What reasonable adjustments are. a. revenues and expenses are reported in the period in which cash is received or paid b. revenues are reported on the income statement in the period in which they are earned c. accrual basis of accounting supports the matching concept b. Part 16 - Types of Contracts | Acquisition.GOV b. asset, debit -Rental income accrued during March, tenant to pay in April: $900. After recording these adjustments, net income for March is: a. a. a) $44,200. (b) The entry to record revenue earned but not yet received. b. In order to be considered for the position, please attach the following: 1. Is the gift you purchased for that special someone really appreciated? A. 1) The accountant for the Grassroots Company failed to make an adjusting entry to record revenue earned but not yet billed to customers. See all questions asked by natashavale1025. b) Midwood Consultants made payment in January for office rent for the first three months of the year. Assets + Dividends + Expenses= Liabilities + Common Stock + Retained Earnings + Revenues. We also provide some thoughts concerning compliance and risk mitigation in this challenging environment. What amount of interest expense has accrued on the bank loan? $4,300 This was the question investigated in the Journal of Experimental Social Psychology (Vol. On February 3, Ron Brown was billed for an office visit. Before and after the puppies are born, each regular checkup will be $20. 1) Which of the following is the accounting principle that governs the timing of revenue recognition? the amount of the trial balance. B) Both revenues and assets will be overstated. a) Liabilities and expenses increase; stockholders' equity decrease b) Assets and stockholde, Indicate the type of Deferred Tax account created by Accrued Expenses and Prepaid Expenses, respectively: a. The three most common types of adjusting journal entries are accruals . (3) On December 1, rent on the office building had been paid for three months. c. Accumulated Depreciation A. Despite the fact that the ad will appear in Haute Cuisine three months after the end of Bon Appetite Caf's current fiscal year, the Caf's accountant recorded the disbursement to advertising expense. c) Assign revenues to the period in which they are received. Treasury stock b. Paid-in capital c. Retained earnings d. Accumulated other comprehensive income e. Accrued issuances, What will be the effect on the accounting equation, when payment is made to the creditor of the business? As of January 31, Princess Company owes $500 to Butler Co. for equipment rented during January. Farad, Inc., specializes in selling used trucks. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over- or understated in 2018 and 2019 . d) Only if the accounting periods are equal in length. d) Realization principle and matching principle. The accrual of an electricity bill for electricity used but not yet paid b. a. Liability c. Equity d. Revenue e. Expense, Which of the following entries causes an immediate decrease in assets and stockholders' equity? The note is to be repaid, with interest, in six months. a. still on hand [1001][1562], [1652][1001]\left[\begin{array}{rr}-1 & 6 \\ 5 & 2\end{array}\right]\left[\begin{array}{ll}1 & 0 \\ 0 & 1\end{array}\right] d. $6,400, Smokey Company purchases a one-year insurance policy on July 1 for $3,600. b) An understatement of assets, net income, and owners' equity. D) decreases owner's equity and assets. a) An overstatement of assets and of net income offset by an understatement of owners' equity. Skip. d. Expenses are a negative factor in the computation of net income. The entry to record this event is an example of an adjusting entry: a. a computer technician has installed the latest software updates and was paid on the same day d) Debit Rental Revenue $15,000 and credit Unearned Rental Revenue $15,000. Which is the best response? Hypodermis d. Nails e. Sebaceous glands. 57. Fair value adjustment-trading a. C. Assigning expenses to the periods in which they are incurred. a) Services rendered. Which of the following is considered to be unearned revenue? A) Deferred credits B) Constructive obligations C) Equitable obligations D) Contingent liabilities, Which of the following doesn't correctly describe a journal entry which debits depreciation expense and credits accumulated depreciation? DOC Chapter 05 Audit Evidence and Documentation - CPA Diary Assets are transferred from one corporation to another. = 15 * 3/20 a. 2 Which of the following is most likely not considered an adjusting d) Debit Interest Expense $2,100 and credit Accrued Interest Payable $4,200. Depreciation on eligible infrastructure assets need not be recorded if the assets are being maintained at or abo, According to SFAC No. c. accrual basis Which of the following groups are not considered a specialist by AICPA Professional Standards: A. Appraisers. a. Asset b. \text{From Income Statement:}&\textbf{2018}\\[2pt] 21. Why It Matters; 3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements; 3.2 Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions; 3.3 Define and Describe the Initial Steps in the Accounting Cycle; 3.4 Analyze Business Transactions Using the Accounting Equation and Show the Impact of Business . ($60,000 / 10 = $6,000 * 4 = $24,000; $60,000 - $24,000 = $36,000). 3321 (a) and 41 U.S.C.3901 ). b. records revenues and expenses when they are incurred Interest Revenue If $400 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is c. Expenses decrease stockholders' equity. A. B) b) Only an estimate. (If you click "Add or remove columns," you will find that you can obtain comparisons of a number of key statistics for either the most recent year or quarter.) b) $4,000 is paid in January for equipment with a useful life of four years. $3,200 (5) All fees totaling $19,800 were earned during the month for clients who had paid in advance. b. deferred 1) On December 31, Louis Jeweler's made an adjusting entry to record $4,200 accrued interest payable on its mortgage. 1) Unearned revenue is: 31,2018$85,0002018700,000Dec. Insurance Expense A) User: 3/4 16/9 Weegy: 3/4 ? B) Revenue. On January 25, Ramona's Nursery hired a college student to drive the minibus; the new employee is to begin work in February. When you have accessed the documents, you can use the search tool in your Internet browser. a) Realization principle Legislative reform is needed, to remove or widen the . d. None of these choices would not cause the adjusted trial balance totals to be unequal. c. book value Weegy: A basic position in American foreign policy has been that America must defend its foreign interests related to Weegy: 15 ? A. Are they quantitative or qualitative in nature? C. Liabilities, Identify the type of account for the following: Prepaid Insurance a. c. revenue, asset d. Increase an expense; decrease an asset. A) REGISTER TO BID: Registration at the auction finalizes each bidder's agreement to the terms and conditions of sale as stated in the Contract and any Addenda which are incorporated b) In the period with the higher earnings. Solved Which of the following statements is correct? Select - Chegg a. income statement account and one balance sheet account b) Deferred revenue. Which of the following situations is not considered an adjustment c. expenses in the period when they are paid B. Assigning revenues to the periods in which they are earned. B. If there is a balance in the prepaid rent account after adjusting entries are made, it represents a(n), When recording an adjusting entry for unearned revenue, a(n). To put the firm's current P/E\mathrm{P} / \mathrm{E}P/E ratio in perspective, it is useful to compare this ratio with that of other companies in the same industry. = 2 1/4. Compute the dealerships sales price variance and sales volume variance for the month and classify each as favorable or unfavorable.