b. Createyouraccount. 1) In which of the following situations would the largest amount be recorded as an expense of the current year? Change in inventory. a. B) Owners' equity will be understated. To ensure consistency and fairness to all applicants, please do not submit materials in addition to those requested. a. 1. d. required for the next accounting period, The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n) b. an accrued liability 1. b. debit Prepaid Rent, $24,000; credit Rent Expense, $8,000 d. contra asset, expense, The type of account and normal balance of Prepaid Insurance is Increase in assets b. Which one of the following is not considered a basic type of adjusting entry? Ramona's Nursery purchased playground equipment on January 1 with an estimated useful life of six years. Adjusting entries, also known as adjusting journal entries (AJE), are the entries made in a business firm's accounting journals to adapt or update the revenues and expenses accounts according to the accrual principle and the matching concept of accounting. 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. a) An overstatement of assets and of net income offset by an understatement of owners' equity. d. revenues when the liability is no longer owed, Which of the following is considered to be unearned revenue? 1) Omega Company adjusts its accounts at the end of each month. .c) A credit to Child Care Fees Earned of $4,500. d) Equal $9,800. January 31 falls on a Tuesday; salaries are paid on Friday of each week. 1) Which statement is true about an adjusted trial balance? 1) The concept of materiality: 4. Which of the following accounts normally has a debit balance? Asset b. 6, expenses can be defined by which of the following? This tool is intended to be used as a guide only. 83) Which of the following isnotconsidered an end-of-period adjusting entry?A) The entry to record the portion of unexpired insurance which has become expense during the period. Question 4 options: 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. Which ONE of the following items is NOT a type of stockholders' equity? = 2 1/4. d) As an expense on the income statement. b) Assets = Liabilities - Owners' Equity. A_____is a collection problem that requires immediate action because this individual has a balance due and has moved without leaving a forwarding address. d. debit Supplies; credit Stockholders' Equity, Buster Industries pays weekly salaries of $30,000 on Friday for a five-day week ending on that day. (5) Fees of $9,800 were earned during the month for clients who had paid in advance. 1) Which of the following is the accounting principle that governs the timing of revenue recognition? a. the required rate of return. Send Mr. Brown a friendly written reminder. Identify at least two of these examples. b) Whenever transactions affect the revenue or expenses of more than one accounting period. b) $41,160. See all questions asked by natashavale1025. Decrease in assets and reduction in net income. B) Debit Interest Payable $250. d) Daystar Company receives payment in May for work to be performed in June and July. c. theater tickets that were not sold for the current performance The entry to record the collection of accounts receivable c. The entry to record the purchase of equipment d. The entry to record bad debts expense for the period. d. Accounts Receivable, If there is a balance in the prepaid rent account after adjusting entries are made, it represents a(n) c. records revenues when cash is received and expenses when they are incurred C) decreases assets and increases liabilities. Advanced Limiting Techniques. Question 7 options: Hypodermis d. Nails e. Sebaceous glands. b. B. Which of the following is not considered a basic type of adjusting entry? d) Debit Interest Expense $2,100 and credit Accrued Interest Payable $4,200. c. Revenue minus expenses. The customer is the director of a nearby animal shelter. Question 14 options: Farad, Inc., specializes in selling used trucks. CHAPTER ONE. This problem has been solved! Income statement B. Each earns $800 per week for a five-day work week ending on Friday. Which of the following would not be considered an adjusting entry? d) Prepaid expenses are shown in a special section of the income statement. Sketch the graph of D(v)D(v)D(v). c. The concepts statements discuss the concept of "articulation" between financial statement elements. a. depreciation of long-term physical assets. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: In a recent balance sheet, Microsoft Corporation reported Property, Plant, and Equipment of $27,804 million and Accumulated Depreciation of $14,793 million. 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? c) Depreciation A) Marketable Securities B) Equipment C) Prepaid Expenses D) Interest Receivable, Which of the following is a correct statement regarding the use of the modified approach for accounting for eligible infrastructure assets? a) Net income will be overstated and total assets will be understated. Over the phone, a new customer thinks her dog is pregnant and asks the veterinary receptionist what the total fee will be for obstetric care. What is the balance to be carried forward in the checkbook? theater tickets sold for next month's performance. b. a computer technician has been paid in advance to install software updates as they become available D. b. debit Salary Expense, $12,000; credit Dividends, $12,000 B) decreases net income and increases liabilities. c) Midwood Consultants began working for a client on March 15; bills will be sent monthly beginning April 15. The customer claims he can't pay today, but he hopes to be able to pay next month. . c) Daystar Company is paid on May 25 for work done in the first two weeks of May. (3) On December 1, rent on the office building had been paid for four months. 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? $12,000 Change from straight-line to sum-of-the-years'-digits method of depreciation. (A), [1001][1652]\left[\begin{array}{ll}1 & 0 \\ 0 & 1\end{array}\right]\left[\begin{array}{rr}-1 & 6 \\ 5 & 2\end{array}\right] a) The entry to record depreciation. Increase in an asset and increase in a liability. Compute the dealerships sales price variance and sales volume variance for the month and classify each as favorable or unfavorable. d) Balance sheet items are presented before income statement items. d) Net income for Perfect Painting for 2018 is overstated. 1) Which of the following is considered an adjusting entry? $3,900 c) Results in financial statements that are less useful to decision makers because many details have been omitted. 1) Videobusters, Inc. offered books of video rental coupons to its patrons at $40 per book. Asset, Liability c. Liability, Liability d. Asset, Asset, Which of the following statements is true concerning all types of tax-free corporate reorganizations? Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. Prepaid expenses. Therefore, the credit to Supplies in the adjusting entry is for the amount of supplies d. liability, If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n) d) Debit Rental Revenue $15,000 and credit Unearned Rental Revenue $15,000. d. recording of accrued revenue. d) $2,560, 1) Which of the following accounting principles is concerned with offsetting revenue with the expenses incurred in producing that revenue? c) Debiting Wage Expense for $4,480 and crediting Wages Payable for $4,480. c. Accumulated Depreciation d) Materiality. b) The entry to record uncollected revenues. C) An entry to convert. c. $6,800 $3,500. (a) A power. 29. d) Realization principle and matching principle. b. Underrecording debt. 1) Which of the following would not be a proper application of the concept of materiality by Millridge Corporation? 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. Assets and Revenues b. The three most common types of adjusting journal entries are accruals . finding a different way to do something. (5) All fees totaling $19,800 were earned during the month for clients who had paid in advance. c. Prepaid expenses, land, and accounts receivable. What categories capital falls in: A. Pages 3 Ratings 100% (13) 13 out of 13 people found this document helpful; C) Revenues will be understated, but assets will be ov, Which of the following accounts has a normal debit balance? Identify where the following item would be reported in the financial statements. d. $1,400, Accumulated Depreciation and Depreciation Expense are classified, respectively, as C) trend projections. D. An entry to convert an asset to a liability. Demand a reason for nonpayment. a. income statement account and one balance sheet account A. expenses and assets B. assets, liabilities, and stockholders' equity C. liabilities and stockholders' equity D. assets and revenue, For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, (2) identify the normal balance of the account, and (3) select debit (Dr.) or credit (Cr.) Maturity dates of long-term debt c. Methods of amortizing intangibles d. Composition of plant assets, Fill in the blanks with the category of the expanded accounting equation (assets; liabilities; owner, capital; owner, withdrawals; revenues; expenses). a. an accrued asset The adjusting entry required by Great Kids Co. on January 30 includes: a. snow removal services that have been paid for three months in advance Please state where each account should be placed? Liabilities and Stockholders' Equity C. Revenues and Expenses D. Liabilities and Expenses, The adjusting entry to record an accrued expense is: a. In order to be considered for the position, please attach the following: 1. b. deferral basis A) a) Only if a manual accounting system is used in both periods. c. accrued Assets are transferred from one corporation to another. a) Assets b) Liabilities c) Owner Equity d) Expenditures, In accounting, what is the meaning of capitalized? b) Liabilities a) An exact calculation prepared by an appraiser. Which of the following is not considered a basic type of adjusting entry a An. c) The entry to record revenue earned but not yet received. b. B) Whenever expenses are not paid in cash. 1) In which of the following situations would Daystar Company record unearned revenue in May? FromBalanceSheetsAccountsReceivableFromIncomeStatement:SalesDec. C) B) Revenue. d. expenses are reported in the same period as the revenues to which they relate, Generally accepted accounting principles require that companies use the ____ of accounting. d. not earned but the cash has been received, Adjusting entries are C) An entry to convert an asset to an expense. c. an accrued expense 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. Liability c. Equity d. Revenue e. Expense, Identify the type of account for the following: Owner Withdrawals a. Rent expense amount b. (pdf) Introduction Congress is fast approaching the need to take action on the nation's statutory debt limit, often referred to as the debt ceiling. b) Consumed. c. Offsetting current liabilities against assets that, Which item below is not a current liability? b. Which of the following accounts would likely be included in an accrual adjusting entry? Assets = liabilities + stockholders' equity c. Assets = liabilities d. Assets = liabilities + retained earnings, Which of the following is not a change in accounting estimate? b. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called In fact, limiter faux pas are one of the easiest ways to undo a hard-earned mix. Do nothing yet; Mr. Brown's account is current. c. the IRR. Basic type of adjusting entry includes recording entry to convert a liability to a revenue, to convert an asset to an expense, and in order to record accrued unpaid expenses. Debit Depreciation Expense $578 and credit Accumulated Depreciation $578. We level all printers as if everything is properly assembled, tightened, and adjusted. 1) Depreciation expense is: a. earned and the cash has been received A) Assets and Expenses B) Liabilities and Dividends C) Revenues and Liabilities D) Owners' Equity and Dividends. checks stamped "NSF." A) Assets + Liabilities = Stockholder's Equity B) Assets = Liabilities + Stockholder's Equity C) Assets/Revenue = Expenses D) Liabilities + Expenses = Stockholder's Equity, Identify the term being described by the following statement: Current assets minus current liabilities. b) As a liability on the balance sheet. b. accounting income. C. Received $3,800 for fees earned. User: She worked really hard on the project. c. The chance of rolling a 3 on two dice is 1/18. Each book contained a certain number of coupons for video rentals. c. expenses in the period when they are paid Assets, liabilities, and owner's equity. Legislative reform is needed, to remove or widen the . An adjusting journal entry is usually made at the end of an accounting period to recognize an income or expense in the period that it is incurred. To see how XOM's P/E ratio stacks up to its peers, refer to Google Finance's Related Companies screen. a. 1) Before making month-end adjustments, net income of Bobwhite Company was $232,000 for March. The above entry is not a basic type of adjusting entry. b) Depreciation b. debit to Wages Payable and a credit to Wages Expense d. matching, The entry to adjust the accounts for salaries accrued at the end of the accounting period is d. inventory, Which account would normally not require an adjusting entry? c. revenue c) Midwood Consultants began working for a client on March 15; bills will be sent monthly beginning April 15. Do you think the materiality guidelines should be quantified? Internal auditors. c. Decrease a liability; increase revenue. Job categories Finance. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay. Accrued salaries owed to employees for October 30 and 31 are not considered in preparing the financial statements for the year ended October 31. Norma Company records the payment by debiting Prepaid Rent $2,200 and crediting Cash $2,200. after adjusting entries are posted but before financial statements are prepared. Go to the FASB website and access the FASB Concepts Statements and respond to the following items. The appropriate adjusting entry at the end of the period would be: Listing current liabilities according to amount. Which of the following should be disclosed in the Summary of Significant Accounting Policies? 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? a. equipment allocation The list of disabilities covered under American with Disabilities Act (ADA) refers to all the disabilities for which an employee is protected from discrimination by employers. b) $113,620. Before and after the puppies are born, each regular checkup will be $20. a) Expenses increase stockholders' equity. c. debit Rent Expense, $24,000; credit Prepaid Rent, $8,000 Where are the highest populations in Europe? However, it does not protect against aspiration.