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

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.

A) True
B) False

Correct Answer

verified

Show Answer

Question 72

Essay

Review LaterAdd Note

Review Later

List the four basic types of accounts that require adjusting entries and give an example of each.

Correct Answer

verified

1. Prepaid expenses; example: prepaid in...

View Answer

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

Adjusting entries affect at least one

Prepaid rent,representing rent for the next six months' occupancy,would be reported on the tenant's balance sheet as an

An adjusting entry would adjust an expense account so the expense is reported when incurred.

Vertical analysis compares each item in a financial statement with a total amount from the same statement.

The accounting concept upon which deferrals and accruals are based is

By matching revenues and expenses in the same period in which they are incurred

When is the adjusted trial balance prepared?

The balance in the unearned fees account,before adjustment at the end of the year,is $10,250.Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $3,125.

If the debit portion of an adjusting entry is to an asset account,then the credit portion must be to a liability account.

Record journal entries for the following transactions. a. On December 1,$18,000 was received for a service contract to be performed from December 1 through April 30. b. Assuming the work is performed evenly throughout the contract period,prepare the adjusting journal entry on December 31.

The cash basis of accounting records revenues and expenses when the cash is exchanged while the accrual basis of accounting

For the year ending December 31,Beard Clinical Supplies Co.mistakenly omitted adjusting entries for 1 $9,800 of unearned revenue that was earned,2 earned revenue that was not billed of $10,200,and 3 accrued wages of $7,000.Indicate the combined effect of the errors on a- revenues,b- expenses,and c- net income.

For the year ending December 31,Orion,Inc.mistakenly omitted adjusting entries for $1,500 of supplies that were used,2 unearned revenue of $4,200 that was earned,and 3 insurance of $5,000 that expired.For the year ending December 31,what is the effect of these errors on revenues,expenses,and net income?

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 entry for $975 of supplies used during the period was journalized as a debit to Supplies Expense for $795 and credit to Supplies for $975.

Accumulated depreciation accounts are liability accounts.

For most large businesses,the cash basis of accounting will provide accurate financial statements for user needs.

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

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