B) b. records revenues and expenses when they are incurred d. $8,000, Which 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? d) An overstatement of net income and an understatement of assets. d) Only if the accounting periods are equal in length. d. debit Dividends, $12,000; credit Cash, $12,000, The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed 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. Asset b. Adjusting entries always affect at least one revenue or expense account and one asset or liability account. d) Justifies ignoring the matching principle or the realization principle in certain circumstances. C) Revenues will be understated, but assets will be ov, Which of the following accounts has a normal debit balance? c) Revenue accounts and expense accounts should not appear on the adjusted trial balance. As time passes, fixed assets other than land lose their capacity to provide useful services. Consequently, it should not be used in patients at risk for aspiration (e.g., Gastroesophageal reflux disease [GERD], obesity, diabetes, etc.) d) An entry to convert a liability to a revenue. A. asset B. contra asset C. liability D. stockholder's equity E. contra stockholder's equity F. revenue, or expense, Which of the following is also referred to as debt? Wages Expense Liability c. Equity d. Revenue e. Expense, Which one of the following represents the expanded basic accounting equation? The cash account will always be affected by adjusting journal entries. d) Balance sheet items are presented before income statement items. Indicate also the type of financial statement. b) $36,000. a) Assets, expenses, and withdraws b) Assets, liabilities, and revenues c) Expense, assets, and capital d) Withdrawals, liabilities, and capital, Which one of the following represents the expanded basic accounting equation? (b) Asset impa, Which of the following is considered in computing depreciation expense using the straight-line method? Revenues and expenses B. Which of the following is NOT considered an epidermal appendage? Once a patient's account is in the hands of a_____agency, most offices will terminate the physician-patient relationship. An adjusted trial balance is prepared based on the adjusting entries. a) Assets b) Liabilities c) Owner Equity d) Expenditures, In accounting, what is the meaning of capitalized? When an automobile is being driven at vvv miles per hour, the average driver requires DDD feet of visibility to stop safely, where D=0.065v2+0.148vD=0.065 v^2+0.148 vD=0.065v2+0.148v. Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. c) Net income will be understated and total assets will be overstated. 1) In which of the following situations would Daystar Company record unearned revenue in May? an agreement that has been signed for snow removal services for the next three months After recording these adjustments, net income for March is: d. contra asset, expense, The type of account and normal balance of Prepaid Insurance is An entry to convert an asset to a liability. a. Depreciation Expense. Asset b. On January 25, Ramona's Nursery hired a college student to drive the minibus; the new employee is to begin work in February. Assets = Revenue + Expenses - Liabilities. a) Realization principle 58) The computer monitoring of tracking signals and self-adjustment is referred to as. Asset b. 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? d) Matching. c. Intangibles; Accumulated Amortization. a) It is prepared before adjusting entries. Your chance of going to Disney World next year is 10%. c) Net income for Perfect Painting for 2018 is understated. b) $4,000 is paid in January for equipment with a useful life of four years. C. Engineers. (2) The company's pays all employees up-to-date each Friday. (More) Debit Accumulated Depreciation $578 and credit Depreciation Expense $578. a) A debit to Child Care Fees Receivable of $9,000. d) Materiality. a) As income on the income statement. Study with Quizlet and memorize flashcards containing terms like the units manned by Special Warfare Combatant-craft Crewmen who operate and maintain a variety of combatant and other craft for maritime special operations are known as _____., Which of the following is not considered an instrument of national power?, (Title: Cooperative Strategy for 21st Century Seapower: 07010201) Deploying the . Please state where each account should be placed? 1) Before any month-end adjustments are made, the net income of Russell Company is $38,000. b) Treats as material only those items that are greater than 2% or 3% of net income. Assets = liabilities + stockholders' equity c. Assets = liabilities d. Assets = liabilities + retained earnings, Which of the following is not a change in accounting estimate? Question 14 options: Asset b. 1) Omega Company adjusts its accounts at the end of each month. The cash basis of accounting records revenues and expenses when the cash is exchanged, while the accrual basis of accounting, records revenues and expenses when they are incurred, at least one income statement account and one balance sheet account, Prepaid expenses are eventually expected to become, expenses when their future economic value expires or is used up. b. d. Unearned Rent, Which of the following accounts would likely be included in a deferral adjusting entry? theater tickets sold for next month's performance. Assets, liabilities, and owner's equity. c. Interest Expense Despite the fact that the ad will appear in Haute Cuisine three months after the end of Bon Appetite Caf's current fiscal year, the Caf's accountant recorded the disbursement to advertising expense. d) $222,900. Before and after the puppies are born, each regular checkup will be $20. \end{array} Demand a reason for nonpayment. The company should make an adjusting entry: b. d. debit to Dividends and a credit to Wages Payable, Supplies are recorded as assets when purchased. 1) Which statement is true about an adjusted trial balance? 1) Under accrual accounting, salaries earned by employees but not yet paid should be expensed: d. net income or loss will not be determined, Adjusting entries always include -Fees earned in March that had been collected in advance: $2,600. The amount to be used for the appropriate adjusting entry is Change in accrued wa, Which one of the following types of liabilities is not currently recognized on balance sheets? a. unearned revenue b. stock dividend distributable c. the currently maturing proportion of long-term debt d. trade accounts payable, What types of account balances are increased by debits? a) $110,800. c. a computer technician has just signed an agreement with you regarding pricing for future work Do nothing yet; Mr. Brown's account is current. The report notes that the statements have been prepared in accordance with "generally accepted accounting principles." d. at least one income statement account and one balance sheet account, Prepaid expenses are eventually expected to become No more trying to get the same "feel" from a piece of paper or feeler gauge. b. snow removal services that have been provided but have not been billed or paid a . a. FromBalanceSheetsDec. 1) Depreciation expense is: After recording these adjustments, net income for March is: d. contra asset, debit, Data for an adjusting entry described as "accrued wages, $2,020" requires a The cash payment for accrued revenues occurs __________ the adjusting entry to record the accrued revenue. NOCCCD will not sponsor any visa applications. 31,2017AccountsReceivable$85,000$105,000FromIncomeStatement:2018Sales700,000\begin{array}{lrr} Depreciation expense- Accumulated Depreciation describes which of the following adjusted journal entry? Identify each of the following as either an asset, a liability, or equity: (a) Prepaid Rent, (b) Unearned Fees, (c) Building, (d ) Wages Payable, (e) Office Supplies. 1) Adjusting entries: b) The entry to record depreciation expense. b) $231,900. If no adjustment is made for this item at January 31, how will Princess's financial statements be affected? d. rarely needed in large companies, Adjusting entries affect at least one Liability, Asset b. c. not earned and the cash has not been received How much is owed the employees for their wages? d) $117,000. 1) On the adjusted trial balance, retained earnings is: 1) The purpose of adjusting entries is to: c. Underrecording depreciation expense. b) Accumulated depreciation should equal depreciation expense. Revenues b. a) Debit Unearned Rental Revenue $15,000 and credit Rental Revenue $15,000. b. allocation of unearned revenue. a) Assets of Perfect Painting are overstated at December 31, 2018. Liability c. Equity d. Revenue e. Expense, Identify the type of account for the following: Owner Withdrawals a. $700 Can any of these factors explain why XOM's P/E ratio differs from its peers? A. Internal auditors. A. b) As a liability on the balance sheet. See all questions asked by natashavale1025. Adjusting entries are necessary for the following items: b. deferred Give Mr. Brown a tactful collection call. a) The entry to record depreciation. -is what's meant by the phrase "The domesticated generations fell Weegy: A suffix is added to the end of a word to alter its meaning. C. Liabilities, Identify the type of account for the following: Prepaid Insurance a. (Provide paragraph citations.) Contract type International ICA. Createyouraccount. $400 C. Liabilities that are assumed when cash is also, Multiple Choice 1. Liability c. Equity d. Revenue e. Expense, Identify the type of account for the following: Fees Earned a. 31,2017$105,000. copyright 2003-2023 Homework.Study.com. (a) Asset impairment charges can be used to raise future reported income. However, it does not protect against aspiration. FromBalanceSheetsAccountsReceivableFromIncomeStatement:SalesDec. d. prepaid expenses, The adjusting entry for gym memberships earned that were previously recorded in the unearned gym memberships account is CHAPTER ONE. Also indicate whether the items in error will be overstated or understated. Adjusting entries are necessary for the following items: B. Assigning revenues to the periods in which they are earned. c. contra asset Which one of the following is not considered a basic type of adjusting entry? A computer technician has installed the latest software updates, but you have not received an invoice or made payment. To put the firm's current P/E\mathrm{P} / \mathrm{E}P/E ratio in perspective, it is useful to compare this ratio with that of other companies in the same industry. 1) Recently, Bon Appetite Caf contracted and paid for a relatively expensive advertisement in Haute Cuisine magazine. -Fees earned in March that had been collected in advance: $3,600. b. liabilities b) The entry to record uncollected revenues. 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 Each book contained a certain number of coupons for video rentals. A. a) In the period in which they are earned. 24 Questions Show answers. a. summarizes the changes in retained earnings for a specific period of time b. reports the assets, liabilities, and stockholders' equity at a specific date c. presents the revenues and expenses for a speci, What categories does commissions fall in: A. Which of the following is not considered a basic type of adjusting entry?A. a) Affects only items reported in the income statement. (a) The entry to record depreciation expense. changing someone's working arrangements. Learn the definition of adjusting entries in accounting, and find examples. a) In April, Daystar Company received payment from a customer for services that are performed in May. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over- or understated in 2018 and 2019 . Indicate also the type of financial statement. a. a) Revenues, Expenses, and Capital b) Revenues, Expenses, and Withdrawals c) Assets, Liabilities, and Capital d) Assets, Liabilities, and Withdrawals. Change in inventory. Adjustments include: Medical Savings Account, Form 8853 Educator Expenses What amount of interest expense has accrued on the bank loan? b. debit Prepaid Rent, $24,000; credit Rent Expense, $8,000 Change from straight-line to sum-of-the-years'-digits method of depreciation. 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. Revenues B. Adjusting journal entries are a feature of accrual accounting as a result of revenue recognition and matching principles. 1. 1) Which of the following is not considered a basic type of adjusting entry? A debit to an expense and a credit to an asset account. Cash, contributed capital, and retained earnings. Professional discounts Participants for the study were those who used a popular Web site for engaged couples. a) Services rendered. the amount of the trial balance. The note is to be repaid, with interest, in six months. 1) We can compare income of the current period with income of a previous period to determine whether the operating results are improving or declining: The monthly rent is $6,000. Stock is exchanged between the shareholders of at least two corporations. c) As a liability on the balance sheet. 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. She seems nervous about it. D) Accumulated Depreciation. Proof of Bachelor's Degree in Counseling, Psychology, or related field. c. records revenues when cash is received and expenses when they are incurred Explain. Which of the following statements is incorrect? Which of the following would not cause the adjusted trial balance totals to be unequal? Your aunt recently received the annual report for a company in which she has invested. If no adjusting entry is made, how will this year's financial statements of Bon Appetite Caf be affected? Revenues, Liabilities, Owners' Equity b. c) A credit to Child Care Fees Earned of $4,500. b) Debit Interest Expense $2,100 and debit Accrued Interest Payable $4,200. = 2 1/4. Liability c. Equity d. Revenue e. Expense, Which one of the following represents the expanded basic accounting equation? Increase in assets b. 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. a. earned and the cash has been received b) The entry to pay salaries. What is the balance to be carried forward in the checkbook? Unearned Rent 1,900 An entry to convert an asset to a liability D. An entry to convert a liability to a revenueE. 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. Test Prep. b. revenues are reported on the income statement in the period in which they are earned B. Adjusting entries are needed: A. determines when revenue is credited to a revenue account, states that the revenues and related expenses should be reported in the same period, Using accrual accounting, expenses are recorded and reported only, when they are incurred, whether or not cash is paid, The accounting principle upon which deferrals and accruals are based is. c. Increase in an asset and increase in, The recognition of an expense may be accompanied by which of the following? The account was debited for $32,500 for premiums on policies purchased during the year. 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. Inform Mr. Brown that his account will go to a collection agency if it remains unpaid by the 25th. d. matching, The entry to adjust the accounts for salaries accrued at the end of the accounting period is We level all printers as if everything is properly assembled, tightened, and adjusted. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay. Purchased land for cash. d) Daystar Company receives payment in May for work to be performed in June and July. Weegy: A basic position in American foreign policy has been that America must defend its foreign interests related to Weegy: 15 ? To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called a. a computer technician has installed the latest software updates and was paid on the same day a) Prepare the revenue and expense accounts for recording the revenue and expenses of the next accounting period. Compute the dealerships sales price variance and sales volume variance for the month and classify each as favorable or unfavorable. d) Prepaid expenses are shown in a special section of the income statement. c) An overstatement of liabilities offset by an understatement of owners' equity. C) An entry to convert an asset to an expense. Account adjustments, also known as adjusting entries, are entries that are made in the general journal at the end of an accounting period to bring account balances up-to-date. a. deferral Changes to previously recorded entries of journal are referred to as adjusting entries. b) Liabilities b) The entry to pay salaries. 1) On December 31, Louis Jeweler's made an adjusting entry to record $4,200 accrued interest payable on its mortgage. As with the other things we are calling a mental illness this problem needs to interfere with your ability to work or go to school . 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. These are 1) Shop supplies are expensed when: A debit to a liability and a credit to cash. (5) Fees of $9,800 were earned during the month for clients who had paid in advance. = 45/20 Fiscal Technician I . The fee for delivery is $500. A) An entry to convert a liability to a revenue. a. Rent expense amount b. B) Whenever expenses are not paid in cash. 1) In which of the following situations would the largest amount be recorded as an expense of the current year? 1) Depreciation expense is: a) An exact calculation prepared by an appraiser. Debit Interest Payable $250. The customer is the director of a nearby animal shelter. 1) The accountant for the Grassroots Company failed to make an adjusting entry to record revenue earned but not yet billed to customers. A. The relationship between the nozzle height and Gantry height is considered not to change, thus leveling only one corner and the . It was most recently raised . 3321 (a) and 41 U.S.C.3901 ). d) Debit Interest Expense $2,100 and credit Accrued Interest Payable $4,200. Supplies 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? d) Prepaid expenses are shown in a special section of the income statement. a. only income statement accounts 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. d. liability, Which of the following is an example of a prepaid expense? A) b. contra asset 1. Accrued salaries owed to employees for October 30 and 31 are not considered in preparing the financial statements for the year ended October 31. $2,000 The adjusting entry to record interest that has accrued on a note payable to the bank will cause an immediate: 1) Before making month-end adjustments, net income of Bobwhite Company was $232,000 for March. Expenses have normal debit balances. -Supplies used in March: $100. Question 5 options: 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. B. Send Mr. Brown a friendly written reminder. Assets are transferred from one corporation to another. Assets, capital, and withdrawals. When considered, this factor makes the offence of human trafficking difficult to prove. 1) Which of the following is not an example of an adjusting entry? When recording an adjusting entry for a prepaid expense. B) An entry to accrue unpaid expenses. Explore the various types of adjusting journal entries, and examine how to do them. Which of the following accounts normally has a debit balance? Current assets b. What category does capital belong to? (1) A one-year bank loan of $720,000 at an annual interest rate of 12% had been obtained on December 1. b) Consumed. Which one of the following is not considered a basic type of adjusting entry? When recording this mortgage payment, the accountant should: a. Become a Study.com member to unlock this answer! Which of the following is NOT considered to be a symptom of reverse culture shock? c. correction of an error in the general journal. c. accrual basis The prepaid insurance account had a balance of $3,000 at the beginning of the year. "The first examination will be $40 or $50, depending on how long the visit is. a. debit Depreciation Expense; credit Building. Suppose Dr. Milton's checking account has a balance of $3,458.92. a. depreciation of long-term physical assets.
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