Filters
Question type
Study Flashcards

Laurey's Pet Emporium purchased equipment on January 1 for $35,000.The equipment will be used for five years,after which the estimated residual value will be $2,000.Using straight-line depreciation,what is the depreciation expense for the first year of the asset's life?


A) $4,000
B) $5,600
C) $6,600
D) $7,000
E) $7,400

F) A) and B)
G) A) and C)

Correct Answer

verifed

verified

Adjusting entries are made after the preparation of financial statements.

A) True
B) False

Correct Answer

verifed

verified

If the accountant failed to make the end-of-period adjustment to reduce the Unearned Management Fees account by the amount of management fees earned,the omission would cause:


A) An overstatement of net income.
B) An overstatement of assets.
C) An overstatement of liabilities.
D) An overstatement of equity.
E) An understatement of expenses.

F) A) and B)
G) C) and E)

Correct Answer

verifed

verified

Accrued revenues:


A) Are paid in advance.
B) At the end of one accounting period often result in cash receipts from customers in the next period.
C) At the end of one accounting period often result in cash payments in the next period.
D) Are also called unearned revenues.
E) Are listed on the balance sheet as liabilities.

F) C) and E)
G) B) and C)

Correct Answer

verifed

verified

The report format is considered to be the only correct format for the balance sheet.

A) True
B) False

Correct Answer

verifed

verified

The cash basis of accounting is an accounting system in which revenues are reported in the income statement when cash is received and expenses are reported when cash is paid.

A) True
B) False

Correct Answer

verifed

verified

The account format of the balance sheet matches the accounting equation.Assets are on the left side of the statement.Liabilities and equity are on the right side of the statement.

A) True
B) False

Correct Answer

verifed

verified

During the year ended December 31,2015,clients paid fees in advance for accounting services amounting to $45,000.These fees were recorded in an account called Unearned Accounting Fees.If $30,000 of these fees are still unearned on December 31,2015,what is the required December 31 adjusting entry?

Correct Answer

verifed

verified

blured image To record accountin...

View Answer

An adjusting entry was made on December 31,2015,to accrue salaries expense of $1,200.Which of the following entries would be prepared to record the next payment of salaries,on January 5,2016,in the amount of $3,000?


A)
An adjusting entry was made on December 31,2015,to accrue salaries expense of $1,200.Which of the following entries would be prepared to record the next payment of salaries,on January 5,2016,in the amount of $3,000? A) B) C) D) E)
B)
An adjusting entry was made on December 31,2015,to accrue salaries expense of $1,200.Which of the following entries would be prepared to record the next payment of salaries,on January 5,2016,in the amount of $3,000? A) B) C) D) E)
C)
An adjusting entry was made on December 31,2015,to accrue salaries expense of $1,200.Which of the following entries would be prepared to record the next payment of salaries,on January 5,2016,in the amount of $3,000? A) B) C) D) E)
D)
An adjusting entry was made on December 31,2015,to accrue salaries expense of $1,200.Which of the following entries would be prepared to record the next payment of salaries,on January 5,2016,in the amount of $3,000? A) B) C) D) E)
E)
An adjusting entry was made on December 31,2015,to accrue salaries expense of $1,200.Which of the following entries would be prepared to record the next payment of salaries,on January 5,2016,in the amount of $3,000? A) B) C) D) E)

F) C) and D)
G) C) and E)

Correct Answer

verifed

verified

A balance sheet that places the liabilities and equity to the right of the assets is called a(n) :


A) Report form balance sheet.
B) Account form balance sheet.
C) Adjusted balance sheet.
D) Unadjusted balance sheet.
E) The accounting equation.

F) All of the above
G) B) and E)

Correct Answer

verifed

verified

On January 8,Gallery Corp.records $5,000 of accrued salaries.On January 15,$10,000 of salaries are paid.The entry on January 15 includes a debit to the Salaries Payable account.

A) True
B) False

Correct Answer

verifed

verified

To correct the error in debiting a truck purchase to Trucking Expense.

Correct Answer

verifed

verified

An adjusting entry can only affect income statement accounts.

A) True
B) False

Correct Answer

verifed

verified

Under the alternative method for recording prepaid expenses,the purchase of insurance for cash would be recorded as a debit to Cash and a credit to Prepaid Insurance.

A) True
B) False

Correct Answer

verifed

verified

The accrual basis of accounting is an accounting system in which revenues are reported as earned when cash is received.

A) True
B) False

Correct Answer

verifed

verified

The following journal entry (incorrectly) recorded the purchase of office supplies for $1,200 on credit: The following journal entry (incorrectly) recorded the purchase of office supplies for $1,200 on credit: If only one entry is to be made to correct this entry it would be: A) None required.The original entry above is correct. B) C) D) E) If only one entry is to be made to correct this entry it would be:


A) None required.The original entry above is correct.
B)
The following journal entry (incorrectly) recorded the purchase of office supplies for $1,200 on credit: If only one entry is to be made to correct this entry it would be: A) None required.The original entry above is correct. B) C) D) E)
C)
The following journal entry (incorrectly) recorded the purchase of office supplies for $1,200 on credit: If only one entry is to be made to correct this entry it would be: A) None required.The original entry above is correct. B) C) D) E)
D)
The following journal entry (incorrectly) recorded the purchase of office supplies for $1,200 on credit: If only one entry is to be made to correct this entry it would be: A) None required.The original entry above is correct. B) C) D) E)
E)
The following journal entry (incorrectly) recorded the purchase of office supplies for $1,200 on credit: If only one entry is to be made to correct this entry it would be: A) None required.The original entry above is correct. B) C) D) E)

F) A) and B)
G) C) and D)

Correct Answer

verifed

verified

If equipment were purchased from an outside party,the using up of the equipment's economic benefit would be considered an external transaction.

A) True
B) False

Correct Answer

verifed

verified

Describe the types of entries required in later periods that result from accruals.

Correct Answer

verifed

verified

Accrued revenues in one period result in...

View Answer

Both the accrual basis and the cash basis of accounting increase the comparability of financial statement information from period to period.

A) True
B) False

Correct Answer

verifed

verified

A trial balance prepared after adjustments have been recorded is called a(n) :


A) Balance sheet.
B) Adjusted trial balance.
C) Unadjusted trial balance.
D) Summary trial balance.
E) Income statement.

F) C) and D)
G) B) and C)

Correct Answer

verifed

verified

Showing 61 - 80 of 187

Related Exams

Exam 1

Accounting in Business

245 Questions

Exam 2

Analyzing and Reporting Transactions

131 Questions

Exam 4

Completing the Accounting Cycle and Classifying Accounts

141 Questions

Exam 5

Accounting for Merchandising Activities

127 Questions

Exam 6

Merchandise Inventory and Cost of Sales

150 Questions

Exam 7

Accounting Information Systems

100 Questions

Exam 8

Internal Control and Cash

139 Questions

Exam 9

Receivables

145 Questions

Show Answer