Question 1

Using the following account balances for Garry's Tree Service,prepare a trial balance.

Accepted Answer

None...

Question 2

The revenue recognition concept states that revenue should be recorded in the same period as the cash is received.

Accepted Answer

A) True 
 B)False

Question 3

The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed

Accepted Answer

A)  historical cost
B)  contra asset
C)  book value
D)  market valueE) A) and C)
F) None of the above

Question 4

Which account would normally not require an adjusting entry?

Accepted Answer

A)  Wages Expense
B)  Accounts Receivable
C)  Accumulated Depreciation
D)  CashE) B) and C)
F) A) and D)

Question 5

Using accrual accounting,expenses are recorded and reported only

Accepted Answer

A)  when they are incurred,whether or not cash is paid
B)  when they are incurred and paid at the same time
C)  if they are paid before they are incurred
D)  if they are paid after they are incurredE) A) and D)
F) C) and D)

Question 6

The matching concept requires expenses be recorded in the same period that the related revenue is recorded.

Accepted Answer

A) True 
 B)False

Question 7

At the end of the fiscal year,the usual adjusting entry to prepaid insurance to record expired insurance was omitted.Which of the following statements is true?

Accepted Answer

A)  total assets at the end of the year will be understated.
B)  stockholders' equity at the end of the year will be understated.
C)  net income for the year will be overstated.
D)  insurance expense will be overstatedE) B) and C)
F) A) and C)

Question 8

Adjusting entries always include

Accepted Answer

A)  only income statement accounts
B)  only balance sheet accounts
C)  the cash account
D)  at least one income statement account and one balance sheet accountE) B) and C)
F) A) and D)

Question 9

Which of the following is an example of an accrued expense?

Accepted Answer

A)  salary owed but not yet paid
B)  fees received but not yet earned
C)  supplies on hand
D)  a two-year premium paid on a fire insurance policyE) B) and C)
F) A) and D)

Question 10

The entry to adjust the accounts for salaries accrued at the end of the accounting period is

Accepted Answer

A)  debit Salaries Payable; credit Cash
B)  debit Cash; credit Salaries Payable
C)  debit Salaries Payable; credit Salaries Expense
D)  debit Salaries Expense; credit Salaries PayableE) A) and B)
F) A) and D)

Question 11

The supplies account has 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.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

Accepted Answer

A)  $400
B)  $2,000
C)  $6,800
D)  $6,400E) All of the above
F) A) and D)

Question 12

By ignoring and not posting the adjusting journal entries to the appropriate accounts,net income will always be overstated.

Accepted Answer

A) True 
 B)False

Question 13

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)  journalizingE) None of the above
F) B) and D)

Question 14

The type of account and normal balance of Prepaid Insurance is

Accepted Answer

A)  asset,credit
B)  asset,debit
C)  contra asset,credit
D)  contra asset,debitE) A) and C)
F) C) and D)

Question 15

Journalize the six entries to adjust the accounts at December 31.Hint: One of the accounts was affected by two different adjusting entries.

Accepted Answer

The answer of Journalize the six entries to adjust the...

Question 16

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account,which of the following describes the effect of the credit portion of the entry?

Accepted Answer

A)  decreases the balance of an stockholders' equity account
B)  increases the balance of a liability account
C)  increases the balance of an asset account
D)  decreases the balance of an expense accountE) A) and D)
F) None of the above

Question 17

The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as an

Accepted Answer

A)  stockholders' equity
B)  asset
C)  contra asset
D)  liabilityE) B) and D)
F) A) and B)

Question 18

If there is a balance in the prepaid rent account after adjusting entries are made,it represents an

Accepted Answer

A)  deferral
B)  accrual
C)  revenue
D)  liabilityE) A) and D)
F) A) and C)

Question 19

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

Accepted Answer

A)  Adjust supplies inventory to actual.
B)  Record purchase of supplies.
C)  Reduce supplies expense.
D)  Record sale of supplies.E) A) and B)
F) A) and C)

Question 20

Which of the following is an example of accrued revenue?

Accepted Answer

A)  snow removal services that have been paid for three months in advance
B)  snow removal services that have been provided but have not been billed or paid
C)  an agreement that has been signed for snow removal services for the next three months
D)  snow removal services that has been provided and paid on the same dayE) A) and D)
F) A) and B)

Exam 3: The Adjusting Process

Using accrual accounting,expenses are recorded and reported only

Correct Answer
verified

The entry to adjust the accounts for salaries accrued at the end of the accounting period is

Correct Answer
verified

Which of the following is an example of accrued revenue?

Correct Answer
verified

By ignoring and not posting the adjusting journal entries to the appropriate accounts,net income will always be overstated.

Correct Answer
verified

The matching concept requires expenses be recorded in the same period that the related revenue is recorded.

Correct Answer
verified

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

Correct Answer
verified

The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as an

Correct Answer
verified

At the end of the fiscal year,the usual adjusting entry to prepaid insurance to record expired insurance was omitted.Which of the following statements is true?

Correct Answer
verified

Correct Answer
verified

The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed

Correct Answer
verified

Using the following account balances for Garry's Tree Service,prepare a trial balance.

Correct Answer
verified
None...
View Answer

Which account would normally not require an adjusting entry?

Correct Answer
verified

Which of the following is an example of an accrued expense?

Correct Answer
verified

The type of account and normal balance of Prepaid Insurance is

Correct Answer
verified

Journalize the six entries to adjust the accounts at December 31.Hint: One of the accounts was affected by two different adjusting entries.

Correct Answer
verified

The revenue recognition concept states that revenue should be recorded in the same period as the cash is received.

Correct Answer
verified

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account,which of the following describes the effect of the credit portion of the entry?

Correct Answer
verified

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

Correct Answer
verified

Adjusting entries always include

Correct Answer
verified

If there is a balance in the prepaid rent account after adjusting entries are made,it represents an

Correct Answer
verified

Exam 3: The Adjusting Process

Using accrual accounting,expenses are recorded and reported only

Correct AnswerverifiedShow Answer

The entry to adjust the accounts for salaries accrued at the end of the accounting period is

Correct AnswerverifiedShow Answer

Which of the following is an example of accrued revenue?

Correct AnswerverifiedShow Answer

By ignoring and not posting the adjusting journal entries to the appropriate accounts,net income will always be overstated.

Correct AnswerverifiedShow Answer

The matching concept requires expenses be recorded in the same period that the related revenue is recorded.

Correct AnswerverifiedShow Answer

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

Correct AnswerverifiedShow Answer

The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as an

Correct AnswerverifiedShow Answer

At the end of the fiscal year,the usual adjusting entry to prepaid insurance to record expired insurance was omitted.Which of the following statements is true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed

Correct AnswerverifiedShow Answer

Using the following account balances for Garry's Tree Service,prepare a trial balance.

Correct AnswerverifiedNone...View AnswerShow Answer

Which account would normally not require an adjusting entry?

Correct AnswerverifiedShow Answer

Which of the following is an example of an accrued expense?

Correct AnswerverifiedShow Answer

The type of account and normal balance of Prepaid Insurance is

Correct AnswerverifiedShow Answer

Journalize the six entries to adjust the accounts at December 31.Hint: One of the accounts was affected by two different adjusting entries.

Correct AnswerverifiedShow Answer

The revenue recognition concept states that revenue should be recorded in the same period as the cash is received.

Correct AnswerverifiedShow Answer

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account,which of the following describes the effect of the credit portion of the entry?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Adjusting entries always include

Correct AnswerverifiedShow Answer

If there is a balance in the prepaid rent account after adjusting entries are made,it represents an

Correct AnswerverifiedShow Answer

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None...
View Answer

Correct Answer
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