Accounting Ch 3 & 4 Quiz questions

credit to Salary Payable of $4,000A business pays bi-weekly salaries of $20,000 every other Friday for a ten-day period ending on that day. The last pay day of December is Friday, December 27. Assuming 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). The entry for the payment of the payroll on Friday, January 10 includes?
credit to Salary Payable of $16,000A business pays bi-weekly 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?
ordinarily begins on the first day of a month and ends on the last day of the following twelfth monthA fiscal year?
Contra Asset AccountsAccumulated Depreciation appears on the?
income statement account and one balance sheet accountAdjusting entries affect at least one?
at least one income statement account and one balance sheet accountAdjusting entries always include?
needed to bring accounts up to date and match revenue and expenseAdjusting entries are?
zeroAfter posting the second closing entry to the income summary account, the balance will be equal to?
DepreciationAs time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called?
represent amounts accumulated during a specific period of timeBalance sheet accounts?
Net income or loss will be properly reported on the income statementBy matching revenues and expenses in the same period in which they incur?
the last day of the accounting period, although they are actually journalized after the end of the accounting periodClosing entries are dated in the journal as of?
must be journalized and postedClosing entries
not yet been recorded as expensesDeferred expenses have
not earned but the cash has been receivedDeferred revenue is revenue that is
Preparation of adjustments, adjusted trial balance, financial statementsDuring the end-of-period processing which of the following best describes the logical order of this process?
accrual basisGenerally accepted accounting principles requires that companies use the ____ of accounting?
Closing journal entries,Income Summary 650 – ABC, Capital 650
Assets and owner’s equity understatedA tenant paid 6 months rent in advance when he moved in on the first day of the month. No entry was made on the last day of the month =
increases the balance of an expense accountIf 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?
decrease the balance of a liability accountIf 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 credit portion of the entry?
preparing a post-closing trial balanceIn the accounting cycle, the last step is?
Prepaid expense,Paid 6 months of rental payments to the landlord
balance sheet in the current assets sectionNotes Receivable due in 350 days appear on the?
No financial statementOn which financial statement will Income Summary be shown?
verify that the debits and credits are in balanceOnce the adjusting entries are posted, the Adjusted Trial Balance is prepared to?
matchingOne of the accounting concepts upon which deferrals and accruals are based is?
added to liabilities and the two are equal to assetsOwner’s Equity is?
become expenses when their future economic value expiresPrepaid expenses are eventually expected to?
current assetPrepaid insurance is reported on the balance sheet as a?
been incurred, not paid, and not recordedPrior to the adjusting process, accrued expenses have?
been earned and not recorded as revenuePrior to the adjusting process, accrued revenue has?
will be paid in less than one yearShort-term liabilities are those liabilities?
liability, creditThe account type and normal balance of Unearned Revenue is?
Unadjusted, adjusted, post-closingThe accounting cycle requires three trial balances be done. In what order should they be prepared?
debit Depreciation Expense; credit Accumulated DepreciationThe adjusting entry to record the depreciation of equipment for the fiscal period is?
after the income statement and the statement of owner’s equityThe Balance Sheet should be prepared?
records revenues and expenses when they are incurredThe cash basis of accounting records revenues and expenses when the cash is exchanged while the accrual basis of accounting?
Current Liabilities and Long-Term LiabilitiesThe classified Balance Sheet will divide its Liabilities Section as the following subsections?
Current Assets and Property, Plant, and EquipmentThe classified Balance Sheet will subsection the assets section as follows?
book valueThe difference between the balance of a fixed asset account and the related accumulated depreciation account is termed?
debit Supplies Expense; credit SuppliesThe entry to adjust for the cost of supplies used during the accounting period is?
debit Wages Expense; credit Wages PayableThe entry to adjust the accounts for wages accrued at the end of the accounting period is?
debit Income Summary; credit Insurance ExpenseThe entry to close the appropriate insurance account at the end of the accounting period is?
begins with the first day of the month and ends on the last day of the twelfth monthThe fiscal year selected by companies?
An adjusted trial balance is preparedThe following are steps in the accounting cycle. Of the following, which would be prepared last?
Transactions are posted to the ledgerThe following are steps to the accounting cycle. Of the following, which step should be done first?
AccrualThe general term employed to indicate an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is?
the adjusted trial balanceThe income statement is prepared from?
before the statement of owner’s equity and balance sheetThe income statement should be prepared?
Revenues less Expenses (ordered largest to smallest amount) with Miscellaneous Expense listed lastThe Income Statement will include the following accounts?
the clearing accountThe income summary account is also called?
states that the revenues and related expenses should be reported in the same periodThe matching concept?
is a fiscal year that ends when business activities are at its lowest point.The natural business year?
Original cost less accumulated depreciationThe net book value of a fixed asset is determined by?
does not include income statement accountsThe post-closing trial balance differs from the adjusted trial balance in that it?
analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare adjusting entries, prepare financial statements, journalize closing entries and post to the ledger, and finally prepare a post-closing trial balanceThe proper sequence of steps in the accounting cycle is as follows?
determines when revenue is credited to a revenue accountThe revenue recognition concept?
plus investments plus Net Income (loss) less withdrawalsThe Statement of Owner’s Equity begins with the beginning balance followed by?
after the income statement and before the balance sheetThe Statement of Owner’s Equity should be prepared?
contra asset, creditThe type of account and normal balance of Accumulated Depreciation is?
$54,000The unearned rent account has a balance of $72,000. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is?
is used to summarize account balances and adjustments for the financial statementsThe worksheet?
Revenues, expenses, income summary, drawing accountThere are four closing entries. The first one is to close ____, the second one is to close ____, the third one is to close ____, and the last one is to close ____?
balance sheet as a current liabilityUnearned Fees appear on the?
liabilityUnearned rent, representing rent for the next six months’ occupancy, would be reported on the landlord’s balance sheet as a(n)?
when they are incurred, whether or not cash is paidUsing accrual accounting, expenses are recorded and reported only?
when the services are rendered without regard to when cash is receivedUsing accrual accounting, revenue is recorded and reported only?
Capital accountWhat is the last account that should be listed in the Post Closing Trial Balance?
The Adjusted Trial Balance includes the postings of the adjustments for the period in the balance of the accountsWhat is the major difference between the Unadjusted Trial Balance and the Adjusted Trial Balance?
to verify that the debits and credits balanceWhat is the purpose of the adjusted trial balance?
After adjusting journal entries are postedWhen is the adjusted trial balance prepared?
in the general ledgerWhen preparing the statement of owner’s equity, the beginning capital balance can always be found?
Smith, CapitalWhich account would normally not require an adjusting entry?
Unearned RevenueWhich of the accounts below would be closed by posting a debit to the account?
Rent Revenue, Fees Earned, Miscellaneous ExpenseWhich of the following account groups are all considered nominal accounts?
Unearned RentWhich of the following accounts ordinarily appears in the post-closing trial balance?
Supplies ExpenseWhich of the following accounts should be closed to Income Summary at the end of the fiscal year?
Income SummaryWhich of the following accounts will be closed to the Capital account at the end of the fiscal year?
Unearned RentWhich of the following accounts will not be closed to Income Summary at the end of the fiscal year?
Swimming pool cleaning that has been provided but has not been billed or paidWhich of the following is an example of accrued revenue?
Salary owed but not yet paidWhich of the following is an example of an accrued expense?
SuppliesWhich of the following is an example of a prepaid expense?
A computer technician has installed the latest software updates, but you have not received their invoice for paymentWhich of the following is considered to be an accrued expense?
Concert tickets sold for next month’s performanceWhich of the following is considered to be unearned revenue?
Revenues and expenses are reported in the period in which cash is received or paidWhich of the following is not a characteristic of accrual basis of accounting?
The work sheetWhich of the following is not an essential part of the accounting records?
All real accounts are closed at the end of the periodWhich of the following is not true about closing entries?
The sum of the debits exceeds the sum of the credits in the Income Statement columns on the work sheetWhich of the statements below indicates that a company earned a net income for the period?
debit Insurance Expense, $11,000; credit Prepaid Insurance, $11,000Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $14,000 and unexpired insurance of $3,000, for the fiscal year ending on April 30?
LandWhich one of the fixed asset accounts listed below will not have a related contra asset account?
Assets and owner’s equity overstatedWages are paid every Friday for the 5-day work week. The month ended on Monday and no adjustment was recorded
Assets and owner’s equity overstatedNo adjustment was made for supplies used up during the month
Prepaid expense,Paid for one year’s insurance policy
Accrued revenue,Services provided by an attorney that have not been recorded =
Unearned revenue,Retainer fee received from a client for future legal representation
Assets and owner’s equity understatedInterest earned on a notes receivable was not recorded
Journal entries,Cash 450 – Fees Earned 450
Accrued expense,Electric bill to be paid next month
Assets and owner’s equity understatedServices provided to customers on the last day of the month were not billed
Prepaid expense,Paid for a 6-month magazine subscription
Unearned revenue,Received payment covering a 6-month magazine subscription
Accrued revenue,Provided tutoring for a student that will be invoiced next month
Unearned revenue,Received 6 months of rental payments from a tenant
Liabilities overstated and owner’s equity understatedAn attorney has earned 1/2 of a retainer fee that was received and recorded last month. No adjustment was recorded for the amount earned
Liabilities understated and owner’s equity overstatedProperty taxes are paid annually. The estimated monthly amount for the taxes was not recorded
Assets and owner’s equity overstatedDepreciation on equipment was not recorded
Wages Expense 870 – Wages Payable 870Adjusting journal entries, Closing journal entries?
Journal entries,Unearned Revenue 985 – Fees Earned 985
Closing journal entries,Income Summary 597 – Rent Expense 200 – Supplies Expense 180 – Utilities Expense 110 – Miscellaneous Exp 107
Journal entries,RS, Drawing 215 – Cash 215
Journal entries.Accounts Receivable 325 – Fees Earned 325 (Customer billed for services performed)
Unearned revenue.A contact to provide tutoring services beginning next month was signed