Filters
Question type
Study Flashcards

At the end of the fiscal year, the usual adjusting entry to accrue wages due on the last day of the fiscal period was omitted. Which of the following is true?


A) total assets will be understated at the end of the current year
B) the balance sheet and income statement will be misstated but the statement of stockholders' equity will be correct for the current year
C) net income will be overstated for the current year
D) total assets and total liabilities will be understated

E) A) and D)
F) A) and B)

Correct Answer

verifed

verified

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

A) True
B) False

Correct Answer

verifed

verified

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.

Correct Answer

verifed

verified

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

Correct Answer

verifed

verified

A vertical analysis of two income statements for Danielle's Design Services is shown below: ​ A vertical analysis of two income statements for Danielle's Design Services is shown below: ​ *Differences due to rounding ​ Which of the following analyses reflect the data given? A) Wages expense and rent expense show a favorable trend, while supplies and miscellaneous expenses show an unfavorable trend. B) Wages expense and rent expense show an unfavorable trend, while supplies and miscellaneous expenses show a favorable trend. C) Wages expense and supplies expense show a favorable trend, while rent and miscellaneous expenses show an unfavorable trend. D) Wages expense and miscellaneous expense show an unfavorable trend, and rent and supplies expenses show an unfavorable trend. *Differences due to rounding ​ Which of the following analyses reflect the data given?


A) Wages expense and rent expense show a favorable trend, while supplies and miscellaneous expenses show an unfavorable trend.
B) Wages expense and rent expense show an unfavorable trend, while supplies and miscellaneous expenses show a favorable trend.
C) Wages expense and supplies expense show a favorable trend, while rent and miscellaneous expenses show an unfavorable trend.
D) Wages expense and miscellaneous expense show an unfavorable trend, and rent and supplies expenses show an unfavorable trend.

E) None of the above
F) B) and C)

Correct Answer

verifed

verified

Revenues and expenses should be recorded in the same period to which they relate.

A) True
B) False

Correct Answer

verifed

verified

The type of account and normal balance of Prepaid Insurance is


A) asset, credit
B) asset, debit
C) contra asset, credit
D) contra asset, debit

E) A) and C)
F) C) and D)

Correct Answer

verifed

verified

For each of the following, journalize the necessary adjusting entry: For each of the following, journalize the necessary adjusting entry:

Correct Answer

verifed

verified

A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day. The last payday of December is Friday, December 27. Assume the next pay period begins on Monday, December 30 and the proper adjusting entry is journalized at the end of the fiscal period (December 31). Journalize the entry for the payment of the payroll on Friday, January 10. A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day. The last payday of December is Friday, December 27. Assume the next pay period begins on Monday, December 30 and the proper adjusting entry is journalized at the end of the fiscal period (December 31). Journalize the entry for the payment of the payroll on Friday, January 10.

Correct Answer

verifed

verified

Accrued salaries for December ...

View 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 debit portion of the entry?


A) increases the balance of a contra expense account
B) increases the balance of a stockholders' equity account
C) decreases the balance of an asset account
D) decreases the balance of a liability account

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

Correct Answer

verifed

verified

The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry. The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry. A) Record accrual of interest on loan. B) Record payment of interest on loan. C) Record interest due on account. D) Record interest expense paid.


A) Record accrual of interest on loan.
B) Record payment of interest on loan.
C) Record interest due on account.
D) Record interest expense paid.

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

Correct Answer

verifed

verified

What effect will the following adjusting journal entry have on the accounting records? What effect will the following adjusting journal entry have on the accounting records? A) increase net income B) increase revenues C) decrease expenses D) decrease net book value


A) increase net income
B) increase revenues
C) decrease expenses
D) decrease net book value

E) None of the above
F) B) and C)

Correct Answer

verifed

verified

Data for an adjusting entry described as "accrued wages, $2,020" requires a


A) debit to Wages Expense and a credit to Wages Payable
B) debit to Wages Payable and a credit to Wages Expense
C) debit to Accounts Receivable and a credit to Wages Expense
D) debit to Dividends and a credit to Wages Payable

E) None of the above
F) A) and D)

Correct Answer

verifed

verified

Adjusting entries are


A) the same as correcting entries
B) needed to bring accounts up to date and match revenue and expense
C) optional under generally accepted accounting principles
D) rarely needed in large companies

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

Correct Answer

verifed

verified

Deferred revenue is revenue that is


A) earned and the cash has been received
B) earned but the cash has not been received
C) not earned and the cash has not been received
D) not earned but the cash has been received

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

​Which of the following accounts would likely be included in a deferral adjusting entry?


A) ​Interest Revenue
B) ​Unearned Revenue
C) ​Salaries Payable
D) ​Accounts Receivable

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

Correct Answer

verifed

verified

The supplies account had a beginning balance of $1,750. Supplies purchased during the period totaled $3,500. At the end of the period before adjustment, $350 of supplies were on hand. Prepare the adjusting entry for supplies.

Correct Answer

verifed

verified

$1,750 + $...

View Answer

On January 1, the Newman Company estimated its property tax to be $5,100 for the year. ​ On January 1, the Newman Company estimated its property tax to be $5,100 for the year. ​

Correct Answer

verifed

verified

(a) $425 ($5,100/12)...

View Answer

What is the purpose of the adjusted trial balance?


A) to verify that all of the adjusting entries have been posted
B) to verify that the net income (loss) is correctly reported
C) to verify that no adjusting journal entry has been omitted
D) to verify that the debits and credits balance

E) B) and D)
F) A) and C)

Correct Answer

verifed

verified

The entry to adjust for the cost of supplies used during the accounting period is


A) debit Supplies Expense; credit Supplies
B) debit Stockholders' Equity; credit Supplies
C) debit Accounts Payable; credit Supplies
D) debit Supplies; credit Stockholders' Equity

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

Showing 181 - 200 of 205

Related Exams

Exam 1

Accounting and Business

248 Questions

Exam 2

Double-Entry Accounting

219 Questions

Exam 4

The Accounting Cycle

213 Questions

Exam 5

Accounting for Retail Businesses

276 Questions

Exam 6

Inventories

210 Questions

Exam 7

Internal Control and Cash

201 Questions

Exam 8

Receivables

186 Questions

Exam 9

Long-Term Assets: Fixed and Intangible

248 Questions

Exam 10

Liabilities: Current, Installment Notes, and Contingencies

182 Questions

Exam 11

Liabilities: Bonds Payable

174 Questions

Exam 12

Corporations: Organization, Stock Transactions, and Dividends

194 Questions

Exam 13

Statement of Cash Flows

195 Questions

Exam 14

Financial Statement Analysis

208 Questions

Exam 15

Investments

121 Questions

Show Answer