c. revenue Assets + Dividends + Expenses = Liabilities + Common Stock + Revenues c. Assets - Liabilities - Divide, Which of the following would be caused by recording an adjusting journal entry to recognize depreciation? 1) Adjusting entries help achieve the goals of accrual accounting by applying which two accounting principles? 1) Which of the following is not considered a basic type of adjusting entry? a. records revenues when they are earned and expenses when they are paid User: 3/4 16/9 Weegy: 3/4 ? (a) The entry to record depreciation: $3,000. a. depreciation The fee for delivery is $500. Assets, liabilities, and owner's equity. Since LMA does not enter the trachea, it is less stimulating. c) $0 The first payment is to be received on February 15. Gamma Company adjusts its accounts at the end of each month. Which of the following would not cause the adjusted trial balance totals to be unequal? Tax payers subject to the limitation subtract the limitation amount in calculating AMTI. A change from expensing certain costs to capitalizing these costs du. a) It is prepared before adjusting entries. 1) Unearned revenue is: c) Prepaid expenses become expenses only as goods or services are used up. d. debit Prepaid Insurance, $1,800; credit Cash, $1,800, Gracie, Inc. made a prepaid rent payment of $2,800 on January 1. The lease requires monthly rent of $550, with 4 months paid in advance. or in longer cases. d) Only if the accounting periods are equal in length. Supplies On page 14 of The Call of the Wild, what's meant by the phrase "The _____ is defined as to lose or give up hope that things will 15. Change in accounts payable. b. needed to bring accounts up to date and match revenue and expense Use the following account types to form the expanded accounting equation. b) $41,160. a. debit Supplies Expense; credit Supplies The pet died and the family has complained about the effect of the treatment. b) $36,000. c) Debit Accrued Interest Payable $6,300. Accounts Receivable; Bad Debt Expense. Owners' Equity, Assets c. Liability, Expenses d. Assets, Expenses, Which of the following is a definition of expenses that clearly represents an asset-liability approach? An entry to accrue uncollected revenueC. It therefore provides a plausible reason as to why human trafficking charges are often dropped or why traffickers are often charged under related crimes, such as forcible confinement, extortion, etc. b) The entry to record depreciation expense. Large corporations are not able to avoid underpaying their taxes by relying on the 100% of the tax shown on the return for the preceding year exception. b. debit Prepaid Rent, $24,000; credit Rent Expense, $8,000 Statement of changes. b. debit Insurance Expense, $14,000; credit Prepaid Insurance, $14,000 the amount originally paid. c. Increase in an asset and increase in, The recognition of an expense may be accompanied by which of the following? As time passes, fixed assets other than land lose their capacity to provide useful services. Assets are transferred from one corporation to another. -Supplies used in March: $300. c) $60,000. Fiscal Technician I . The following information has been assembled in order to prepare the required adjusting entries at December 31: Generally accepted accounting principles require that companies use the ________ of accounting. If an adjustment for salaries earned but not recorded or paid in the amount of $85,000 were to be omitted, how would this affect the financial statements? b. asset Multiple Choice An entry to convert a liability to a revenue. Adjusting entries are recorded to make adjustments to all general ledger and subsidiary-ledger accounts to reflect the true & correct value at the end of the fiscal reporting period. a) Liabilities b) Assets c) Revenues d) Owner Equity. c) Net income for Perfect Painting for 2018 is understated. 1) Which statement is true about an adjusted trial balance? a. a computer technician has installed the latest software updates and was paid on the same day Increase in assets b. a) $5,120 1) An adjusting entry involving recognition of accrued revenue is necessary at the end of March in which of the following situations? c) Be unaffected. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay amounting to $6,800. b. b. debit Cash; credit Salaries Payable commonly used. B. (c) The entry to record the earned portion of rent received in. c. book value Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Unearned Income. d) Debit Rental Revenue $15,000 and credit Unearned Rental Revenue $15,000. a. c) Results in financial statements that are less useful to decision makers because many details have been omitted. theater tickets sold for next month's performance. 1) Which of the following would not be a proper application of the concept of materiality by Millridge Corporation? For example: making changes to the workplace. b) The entry to pay salaries. She seems nervous about it. (2) The company's pays all employees up to date each Friday. Adjusting entries are necessary for the following items: A) d) $2,560, 1) Which of the following accounting principles is concerned with offsetting revenue with the expenses incurred in producing that revenue? 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 Asset b. a. prepaid The financial statements will be accurate since the $500 does not have to be paid yet. The entry to record this event is an example of an adjusting entry: (b) Contracts negotiated under part 15 may be of any type or combination of types that will promote the Government's interest, except as restricted in this part (see 10 U.S.C. c) An entry to convert an asset to an expense. Doing so: A. Violates professional standards. Your chance of going to Disney World next year is 10%. Borrowed $40,000 from First National Bank. 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 However, the following adjustments are necessary: office supplies used, $3,160; services performed for clients but not yet recorded or collected, $3,040; interest accrued on a note payable to bank, $3,640. d) Realization principle and matching principle. The account was debited for $32,500 for premiums on policies purchased during the year. Briefly summarize the meaning of this term and how it relates to an entity's financial statements. a. A. Assets = Liabilities + Common Stock + Dividends - Revenue - Expenses b. Revenue c. Stockholders' equity d. Liability, Which of the following accounts will appear on the company's income statement? [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] - Total assets decrease. The appropriate adjusting entry at the end of the period would be: Which of the following accounts would likely be included in an accrual adjusting entry? 1) Depreciation expense is: c. Prepaid expenses, land, and accounts receivable. d. debit Building; credit Depreciation Expense. ANSWER Correct Option is Option B. An example of a contra-asset account is: = 15 * 3/20 D) (a) Net income of the company (b) Balance in accumulated depreciation (c) Asset's fair value (d) Cost of inventory produced by equipment (e) Asset's his, Which balance sheet category reflects claims held by creditors against a company's economic resources? C) decreases assets and increases liabilities. a. 31,2017$105,000. b) Accumulated depreciation should equal depreciation expense. d) Daystar Company receives payment in May for work to be performed in June and July. b. deferral basis B. b) Correct errors made during the accounting period. c) An asset. Increase in liabilities c. Decrease in assets d. Decrease in liabilities, An income statement does which of the following? Which fraction has self adjusting force? Current assets b. Expenses have normal debit balances. 1) Which of the following entries causes an immediate decrease in assets and in net income? What action should the veterinary office assistant take upon aging accounts receivable on March 1 of the same year? c. accrual Liability c. Equity d. Revenue e. Expense, Identify the type of account for the following: Owner Capital a. An entry to convert an asset to an expense. C) 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 (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.) 1) Adjusting entries: c) Matching Statement of changes in owner equity C. Balance sheet 2. 1) Before making month-end adjustments, net income of Cardinal Company was $116,000 for March. All rights reserved. A) Expenses are outflows or other using up of assets or incurrence of liabilities (or a combination of both) during a period from delivering or produci, Which of the following types of accounts normally have debit balances? Billing the patient for services and extending credit c. The use of outside collection services d. Bartering for services Click the card to flip Flashcards Learn Test Match Created by Nedina_Shavor Teacher a) An exact calculation prepared by an appraiser. The adjusting entry required at June 30 is: b) A debit to Management Fees Receivable for $200 and a credit to a revenue account for $200. Accumulated depreciation a. If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry? The cash payment for accrued revenues occurs __________ the adjusting entry to record the accrued revenue. d. the future value of cash flows. 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? Go to the FASB website and access the FASB Concepts Statements and respond to the following items. d. Building, equipmen, Which of the following is an appropriate representation of the accounting equation? d. matching, The entry to adjust the accounts for salaries accrued at the end of the accounting period is A) \text{Accounts Receivable}&\text{\$\hspace{5pt}85,000}&\text{\$\hspace{5pt}105,000}\\[20pt] It was most recently raised . a. stockholders' equity 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? Academic Standings and CGPAs from previous terms will not be considered or adjusted. c) $112,400. Which of the following is NOT considered to be a symptom of reverse culture shock? Revenues, liabilities, capital b. b) It decreases net income and decreases assets. Liability c. Equity d. Revenue e. Expense, Which one of the following represents the expanded basic accounting equation? Adjusting entries can be divided into the following four types. d. theater tickets sold for next month's performance, Which of the following is an example of accrued revenue? $550. Assets = liabilities + stockholders' equity c. Assets = liabilities d. Assets = liabilities + retained earnings, Which of the following is not a change in accounting estimate? d) The entry to pay outstanding bills. a. Ramona's Nursery purchased playground equipment on January 1 with an estimated useful life of six years. Legislative reform is needed, to remove or widen the . 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 Which of the following is considered to be unearned revenue? a. Question 6 options: d. not earned but the cash has been received, Adjusting entries are Credit Interest Payable $2,500 (a) The entry to record depreciation expense. c) Debiting Wage Expense for $4,480 and crediting Wages Payable for $4,480. 1) In which of the following situations would Daystar Company record unearned revenue in May? c) Net income will be understated and total assets will be overstated. B. 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. Data gathered from parents, siblings and teachers indicated that siblings in ABA families experienced neither significant drawbacks nor benefits in terms of . a. 6, expenses can be defined by which of the following? Which of the following is not a type of adjusting entry? The Americans with Disabilities Act of 1990, a civil rights law, prohibits employers from discriminating against employees with disabilities. b. allocation of unearned revenue. d. market value. INTRODUCTION. b. earned but the cash has not been received -Rental income accrued during March, tenant to pay in April: $800. Which of the following is not accomplished by an adjusting entry? c. expenses in the period when they are paid c) $1,200 cash dividends are declared and paid. Employees earn a total of $12,800 per week. $2,100 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? January 31 falls on a Tuesday; salaries are paid on Friday of each week. In previous chapter, we discussed the various factors that may influence P/E ratios. However, it does not protect against aspiration. Assets C. Owner's equity D. Liabilities, Which one of the following disclosures is required by generally accepted accounting principles? c) Revenue accounts and expense accounts should not appear on the adjusted trial balance. The adjusting entry required on December 31 is b. debit Insurance Expense, $1,500; credit Prepaid Insurance, $1,500 This memorandum surveys U.S. economic sanctions and anti-money laundering ("AML") developments and trends in 2022 and provides an outlook for 2023. 28. Choose from the following terms: | Throughout time (manufacturing cycle) | Sunk Cost | Differential Costs | Residual Income | Payback Method | Proje, Which of the following accounting elements does the matching principle help to match? b. c. correction of an error in the general journal. A. The budget for the month was to sell 45 trucks at an average price of$9,500 each. After the appropriate adjusting entry is recorded, the balance in the liability account Unearned Fees will: Which of the following situations is not considered an adjustment? The 6% rate is appropriate in this situation. The customer is unemployed and homeless. 1) On December 31, Louis Jeweler's made an adjusting entry to record $4,200 accrued interest payable on its mortgage. d) Net income for Perfect Painting for 2018 is overstated. 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. a) Assets = Liabilities + Owner's Capital + Owner's Drawings - Revenue - Expenses b) Assets + Owner's Drawings + Expenses = Liabilities + Owner's Capital + Revenues c) Assets -, Which account types have a normal debit balance? a) Realization principle a) Prepare the revenue and expense accounts for recording the revenue and expenses of the next accounting period. A) Changes to previously recorded entries of journal are referred to as adjusting entries. 1) Prepaid expenses appear: d. Inventory; Provision for Obsolescence. Liabilities assumed by a corporation on section 351 t. Which of the following groups of accounts have a normal credit balance? As of January 31, Princess Company owes $500 to Butler Co. for equipment rented during January. (2) The company pays all employees up to date each Friday. d. a deferred expense, The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is To ensure consistency and fairness to all applicants, please do not submit materials in addition to those requested. Which is the best response? What are the variables of interest? 1) Which of the following is the accounting principle that governs the timing of revenue recognition? c. Unearned Subscriptions Debit Accumulated Depreciation $578 and credit Depreciation Expense $578. Contract type International ICA. D) An adjusting entry to convert an asset to expense consists of: When you have accessed the documents, you can use the search tool in your Internet browser. Change in accrued wa, Which one of the following types of liabilities is not currently recognized on balance sheets? Payment at the time of service b. 20/3 Asset b. c. asset and one stockholders' equity account an agreement that has been signed for snow removal services for the next three months Unearned Rent 1,900 Can any of these factors explain why XOM's P/E ratio differs from its peers? Which of the following is not a characteristic of the accrual basis of accounting? Asset b. Rent Revenue 1,900. c. Decrease a liability; increase revenue. The practice's bank statement shows canceled checks. Assets c. Stockholders' equity d. Expenses e. Liabilities, Which of the following current asset or current liability accounts is not included in the computation of cash flows from operating activities? b) $113,620. In ICD-10, adjustment disorder is classified under 'Neurotic, stress-related and somatoform disorders' (code F43.2), unlike DSM-IV-TR where is it is not classified under any particular group. d. Accounts Receivable, If there is a balance in the prepaid rent account after adjusting entries are made, it represents a(n) b. Debit Interest Payable $250. C. Assets, expenses, and withdrawals. D) trend smoothing. Internal auditors. a. still on hand 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? copyright 2003-2023 Homework.Study.com. 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. debit Insurance Expense, $2,100; credit Prepaid Insurance, $2,100 b) Net income will be understated and total assets will be understated. a) Expenses increase stockholders' equity. The balance in the Office Equipment account is $12,360; no change has occurred in the account during the year. Owners' equity will be understated. D) Expenses. d. debit to Dividends and a credit to Wages Payable, Supplies are recorded as assets when purchased. $700 c. $5,000 Description This is an X-Axis gantry bed leveler, the first of its kind. a) $24,000. b) Debit Interest Expense $2,100 and debit Accrued Interest Payable $4,200. (1) A one-year bank loan of $720,000 at an annual interest rate of 12% had been obtained on December 1. A) Equity. Asset b. a. snow removal services that have been paid for three months in advance 4. = 2 5/20 b) $36,000. c) Debiting Wage Expense for $4,480 and crediting Wages Payable for $4,480. -Rental income accrued during March, tenant to pay in April: $900. a. historical cost a) To record unrecorded expenses. c) Depreciation 1. a) In April, Daystar Company received payment from a customer for services that are performed in May. What reasonable adjustments are. 1) On June 1, Norma Company signed a 12-month lease for warehouse space. The monthly rent is $7,000. See all questions asked by natashavale1025. b. snow removal services that have been provided but have not been billed or paid a) An overstatement of assets and of net income offset by an understatement of owners' equity. c. accrued b) $12,800 A) Both revenues and assets will be understated. When recording an adjusting entry for a prepaid expense. A. 33. a. asset b. liability c. equity, Which of the following uncorrected errors would result in both assets and net income being overstated? Which of the following is not an adjusting entry? The adjusting entry required by Great Kids Co. on January 30 includes: a) The entry to record depreciation. 29. b) Whenever transactions affect the revenue or expenses of more than one accounting period. C. Assigning expenses to the periods in which they are incurred. c) In the period in which they are paid. d. contra asset, expense, The type of account and normal balance of Prepaid Insurance is Definition of Accrual Adjusting Entries Accrual adjusting entries or simply accruals are one of three types of adjusting entries which are prepared at the end of an accounting period so that a company's financial statements will comply with the accrual method of accounting. b) The entry to pay salaries. c. debit Accounts Payable; credit Supplies Do nothing yet; Mr. Brown's account is current. Revenues B. 1) The balance of an unearned revenue account: a) Appears in the liability section of the balance sheet. Pages 3 Ratings 100% (13) 13 out of 13 people found this document helpful; On February 3, Ron Brown was billed for an office visit. c. dividend c) Debit Unearned Rental Revenue $5,000 and credit Rental Revenue $5,000. The adjustment for accrued fees of $16,340 was journalized as a debit to Accounts Payable for $16,430 and a credit to Fees Earned of $16,340. Current liabilities c. Investments d. Long-term liabilities e. Property, pla. On June 30, 2018, the Esquire Company sold some merchandise to a customer for $30,000\$ 30,000$30,000. Accounts Receivable b) An expense. What category does capital belong to? During the current period 500 books were sold for $20,000, and this amount was credited to Unearned Rental Revenue. Which one of the following is not considered a basic type of adjusting entry? b) Depreciation a) Assets and liabilities b) Assets and owners' equity c) Assets and expenses d) Assets and revenues. d) Matching. Which of the following may not be considered a "qualifying asset" under IAS 23? Proof of Bachelor's Degree in Counseling, Psychology, or related field. D) An entry to convert an asset to a liability. Identify where the following item would be reported in the financial statements. Debit Depreciation Expense $578 and credit Automobile $578. Identify where the following item would be reported in the financial statements. c. contra asset, credit 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. She would like you to explain the meaning of terms she has come across related to accounting. The adjusting entry to record interest that has accrued on a note payable to the bank will cause an immediate: Which of the following is not true regarding the asset-liability approach to defining accounting elements? Under which circumstance would the veterinarian not adjust or cancel a fee for services? A. $2,000 a) A debit to Child Care Fees Receivable of $9,000. The following information has been assembled in order to prepare the required adjusting entries at December 31: Note that the product can be found mentally, without the use of a calculator or pencil-and-paper calculations. d. $1,400, Accumulated Depreciation and Depreciation Expense are classified, respectively, as We level all printers as if everything is properly assembled, tightened, and adjusted. b. b) Only an estimate. b. revenues are reported on the income statement in the period in which they are earned d) Midwood Consultants received payment in February for consulting services rendered in March. b. contra asset The note is to be repaid, with interest, in six months. b. depreciation 1) Depreciation expense is: a) An exact calculation prepared by an appraiser. d. Cash, The balance in the prepaid rent account before adjustment at the end of the year is $32,000, which represents four months' rent paid on December 1. d) Ordered. d. liability, If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n) A. Updating liability and asset accounts to their proper balances. d) $900 is paid to an attorney for legal services rendered during the current year. Identify whether the following item would be classified on a balance sheet as a current liability, a long term-liability or something else: Salaries payable. If no adjusting entry is made, how will this year's financial statements of Bon Appetite Caf be affected? Using accrual accounting, revenue is recorded and reported only, Using accrual accounting, expenses are recorded and reported only, The accounting principle upon which deferrals and accruals are based is. a. the required rate of return. $13,011 (property, plant, equip - accumulated depreciation). 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. c. Interest Expense c. $6,800 The District may choose to fill one or more positions from this recruitment within six (6) months. b. c) To accrue an uncollected revenue. Asset b. d) Debit Interest Expense $2,100 and credit Accrued Interest Payable $4,200. Assets and Revenues b. C) = 45/20 c) Only if each accounting period covered is a full year. For the most part, is XOM's P/E ratio above or below that of its peers? b) At the end of January, Empire Company pays the custodian for January office cleaning services. b) Prepaid expenses represent assets. b. Which of the following will occur if an adjusting entry to record an unrecorded receivable is NOT made? 1) Gamma Company adjusts its accounts at the end of each month. What categories capital falls in: A. c) Unexpired revenue. c. used Identify at least two of these examples. c) To prepare the revenue and expense accounts for recording transactions of the following period. -Depreciation for the month of March: $2,300. c. Intangibles; Accumulated Amortization. -Supplies used in March: $100. Inform Mr. Brown that his account will go to a collection agency if it remains unpaid by the 25th. Liability c. Equity d. Revenue e. Expense, Identify the type of account for the following: Fees Earned a. c) Midwood Consultants began working for a client on March 15; bills will be sent monthly beginning April 15. In which of the following situations would an adjusting entry be made at the end of January to record an accrued expense? Liability c. Equity d. Revenue e. Expense, Identify the type of account for the following: Owner Withdrawals a. Weegy: "The total charge will depend on how many visits you make and how many tests are necessary, but the total fee from the beginning of care until the last visit is usually around $200. c) As a liability on the balance sheet. Limitation on Overall Itemized Deductions Years before 2018 and after 2025: For years before 2018 and after 2025, the overall limitation on itemized deductions is an adjustment for AMT. checks that have a "stop payment" order. Debit Depreciation Expense $578 and credit Accumulated Depreciation $578. Adjusting entry for accrued Q: Adjusting entries that need to be made in order to comply with accrual accounting concepts normally A: Adjusting entries are made by the management to maintain the accrual basis accounting system. a. debit Depreciation Expense; credit Building. increases the balance of an expense account, Prior to the adjusting process, accrued expenses have, been incurred but not paid and not recorded, not yet been recorded as expenses but have been paid, not earned but the cash has been received, income statement account and one balance sheet account, The term used to describe an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is. schoolboy internationals at wembley,
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