FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: The Adjusting Process

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

True/False

Review LaterAdd Note

Review Later

The system of accounting where revenues are recorded when they are earned and expenses are recorded when they are incurred is called the cash basis of accounting.

A) True
B) False

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day. The adjusting entry necessary at the end of the fiscal period ending on the second Wednesday of the pay period includes a

A) debit to salary expense of $8,000
B) debit to salaries payable of $8,000
C) credit to salary expense of $16,000
D) credit to salaries payable of $16,000

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

Correct Answer

verified

Show Answer

Question 73

True/False

Review LaterAdd Note

Reporting of revenues and expenses in the proper period is due to the accounting period concept.

Match the type of account a-e) with the business transactions that follow. -Annual property taxes that are paid at the end of the year.

Match the type of account a-e) with the business transactions that follow. -Paid 6 months of rental payments to the landlord.

Match the type of account a-e) with the business transactions that follow. -A contract to provide tutoring services beginning next month was signed.

What is the purpose of an adjusted trial balance? What types) of error does it detect? What types) of error does it not detect?

Zoey Bella Corp. has a payroll of $10,000 for a five-day workweek. Its employees are paid each Friday for the five-day workweek. Prepare the adjusting entry on December 31 assuming the year ends on Thursday. $\begin{array} { | l | l | l | l | l | } \hline \text { Date } & \text { Description } & \text { Post. Ref. } & \text { Debit } & \text { Credit } \\\hline & & & & \\\hline & & & & \\\hline\end{array}$

Indicate whether the following error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much. The adjustment for accrued fees of $1,170 was journalized as a debit to Accounts Receivable for $1,170 and a credit to Fees Earned for $1,107.

Match the type of account a-e) with the business transactions that follow. -Received 6 months of rental payments from a tenant.

Accumulated depreciation accounts are liability accounts.

Even though GAAP requires the accrual basis of accounting, some businesses prefer using the cash basis of accounting.

Deferred expenses have

The revenue recognition concept requires that the reporting of revenue be included in the period when cash for the service is received.

Adjusting entries are

On January 1, Power House Co. prepaid the annual rent of $10,140. Prepare the journal entry to record this transaction.

Match the type of account a-e) with the business transactions that follow. -Provided tutoring for a student that will be invoiced next month.

Explain the differences between a) Accrued revenues and unearned revenues. b) Accrued expenses and prepaid expenses. c) Give an example of each.

Which of the following is an example of accrued revenue?

Match the type of account a-e) with the business transactions that follow. -Paid for one year's insurance policy.