Question 1

The adjusting entry for rent earned that is currently recorded in the unearned rent account is

Accepted Answer

A)   debit Unearned Rent; credit Rent Revenue
B)   debit Rent Revenue; credit Unearned Rent
C)   debit Unearned Rent; credit Prepaid Rent
D)   debit Rent Expense; credit Unearned RentE) A) and B)
F) A) and C)

Question 2

If the adjustment for depreciation for the year is inadvertently omitted, the assets on the balance sheet at the end of the period will be understated.

Accepted Answer

A) True 
 B)False

Question 3

When is the adjusted trial balance prepared?

Accepted Answer

A)   before adjusting journal entries are posted
B)   after adjusting journal entries are posted
C)   after the adjusting journal entries are journalized
D)   before the adjusting journal entries are journalizedE) C) and D)
F) A) and B)

Question 4

The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is

Accepted Answer

A)   depreciation
B)   deferral
C)   accrual
D)   inventoryE) B) and C)
F) A) and C)

Question 5

Adjusting entries always include

Accepted Answer

A)   only income statement accounts.
B)   only balance sheet accounts.
C)   the cash account.
D)   at least one income statement account and one balance sheet account.E) A) and D)
F) All of the above

Question 6

Depreciation on Office Equipment is $3,300. The adjusting entry on December 31, 2011 would be

Accepted Answer

The answer of Depreciation on Office Equipment is $3,300. The...

Question 7

Which of the accounting steps in the accounting process below would be completed last?

Accepted Answer

A)   preparing the adjusted trial balance
B)   posting
C)   preparing the financial statements
D)   journalizingE) None of the above
F) C) and D)

Question 8

A company purchases a one-year insurance policy on June 1 for $1,260. The adjusting entry on December 31 is

Accepted Answer

A)   debit Insurance Expense, $630 and credit Prepaid Insurance, $630.
B)   debit Insurance Expense, $525 and credit Prepaid Insurance, $525.
C)   debit Insurance Expense, $735, and credit Prepaid Insurance, $735.
D)   debit Prepaid Insurance, $630, and credit Cash, $630.E) A) and B)
F) None of the above

Question 9

The matching concept supports matching expenses with the related revenues.

Accepted Answer

A) True 
 B)False

Question 10

Adjusting entries affect only expense and asset accounts.

Accepted Answer

A) True 
 B)False

Question 11

The adjusted trial balance verifies that total debits equals total credits before the adjusting entries are prepared.

Accepted Answer

A) True 
 B)False

Question 12

Prepare adjusting entries for the following transactions:

Accepted Answer

The answer of Prepare adjusting entries for the following transactions:
...

Question 13

The balance in the office supplies account on June 1 was $6,300, supplies purchased during June were $3,100, and the supplies on hand at June 30 were $2,500. The amount to be used for the appropriate adjusting entry is

Accepted Answer

A)   $3,700
B)   $11,900
C)   $5,700
D)   $6,900E) A) and B)
F) A) and C)

Question 14

A business pays weekly salaries of $20,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is

Accepted Answer

A)   debit Salaries Payable, $8,000; credit Cash, $8,000
B)   debit Salary Expense, $8,000; credit Dividends, $8,000
C)   debit Salary Expense, $8,000; credit Salaries Payable, $8,000
D)   debit Dividends, $8,000; credit Cash, $8,000E) None of the above
F) All of the above

Question 15

For the year ending June 30, Island Clinical Services mistakenly omitted adjusting entries for $1,200 of supplies that were used, (2) unearned revenue of $6,000 that was earned, and (3) insurance of $5,000 that expired. What is the combined effect of these errors on (a) revenues, (b) expenses, and (c) net income for the year ending June 30?

Accepted Answer

(a) Revenues were understated ...

Question 16

Journalize the six entries to adjust the accounts at December 31. (Hint: One of the accounts was affected by two different adjusting entries).

Accepted Answer

The answer of Journalize the six entries to adjust the...

Question 17

At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following statements is true?

Accepted Answer

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 retained earnings statement will be correct for the current year.
C)   Net income will be overstated for the current year.
D)   Total liabilities and total assets will be understated.E) C) and D)
F) A) and C)

Question 18

The balance in the prepaid rent account before adjustment at the end of the year is $24,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is

Accepted Answer

A)   debit Rent Expense, $6,000; credit Prepaid Rent, $6,000
B)   debit Prepaid Rent, $18,000; credit Rent Expense, $6,000
C)   debit Rent Expense, $18,000; credit Prepaid Rent, $6,000
D)   debit Prepaid Rent, $6,000; credit Rent Expense, $6,000E) A) and B)
F) A) and C)

Question 19

A company depreciates its equipment $500 a year. The adjusting entry for December 31 is debit Depreciation Expense, $500 and credit Equipment, $500.

Accepted Answer

A) True 
 B)False

Question 20

Deferrals are recorded transactions that delay the recognition of an expense or revenue.

Accepted Answer

A) True 
 B)False

Exam 3: The Adjusting Process

Deferrals are recorded transactions that delay the recognition of an expense or revenue.

Correct Answer
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If the adjustment for depreciation for the year is inadvertently omitted, the assets on the balance sheet at the end of the period will be understated.

Correct Answer
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The balance in the prepaid rent account before adjustment at the end of the year is $24,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is

Correct Answer
verified

The balance in the office supplies account on June 1 was $6,300, supplies purchased during June were $3,100, and the supplies on hand at June 30 were $2,500. The amount to be used for the appropriate adjusting entry is

Correct Answer
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The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is

Correct Answer
verified

At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following statements is true?

Correct Answer
verified

The adjusted trial balance verifies that total debits equals total credits before the adjusting entries are prepared.

Correct Answer
verified

Which of the accounting steps in the accounting process below would be completed last?

Correct Answer
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Prepare adjusting entries for the following transactions:

Correct Answer
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A company purchases a one-year insurance policy on June 1 for $1,260. The adjusting entry on December 31 is

Correct Answer
verified

The matching concept supports matching expenses with the related revenues.

Correct Answer
verified

Depreciation on Office Equipment is $3,300. The adjusting entry on December 31, 2011 would be

Correct Answer
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Correct Answer
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(a) Revenues were understated ...
View Answer

A company depreciates its equipment $500 a year. The adjusting entry for December 31 is debit Depreciation Expense, $500 and credit Equipment, $500.

Correct Answer
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The adjusting entry for rent earned that is currently recorded in the unearned rent account is

Correct Answer
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Adjusting entries affect only expense and asset accounts.

Correct Answer
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When is the adjusted trial balance prepared?

Correct Answer
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Adjusting entries always include

Correct Answer
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Journalize the six entries to adjust the accounts at December 31. (Hint: One of the accounts was affected by two different adjusting entries).

Correct Answer
verified

A business pays weekly salaries of $20,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is

Correct Answer
verified

Exam 3: The Adjusting Process

Deferrals are recorded transactions that delay the recognition of an expense or revenue.

Correct AnswerverifiedShow Answer

If the adjustment for depreciation for the year is inadvertently omitted, the assets on the balance sheet at the end of the period will be understated.

Correct AnswerverifiedShow Answer

The balance in the prepaid rent account before adjustment at the end of the year is $24,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is

Correct AnswerverifiedShow Answer

The balance in the office supplies account on June 1 was $6,300, supplies purchased during June were $3,100, and the supplies on hand at June 30 were $2,500. The amount to be used for the appropriate adjusting entry is

Correct AnswerverifiedShow Answer

The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is

Correct AnswerverifiedShow Answer

At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following statements is true?

Correct AnswerverifiedShow Answer

The adjusted trial balance verifies that total debits equals total credits before the adjusting entries are prepared.

Correct AnswerverifiedShow Answer

Which of the accounting steps in the accounting process below would be completed last?

Correct AnswerverifiedShow Answer

Prepare adjusting entries for the following transactions:

Correct AnswerverifiedShow Answer

A company purchases a one-year insurance policy on June 1 for $1,260. The adjusting entry on December 31 is

Correct AnswerverifiedShow Answer

The matching concept supports matching expenses with the related revenues.

Correct AnswerverifiedShow Answer

Depreciation on Office Equipment is $3,300. The adjusting entry on December 31, 2011 would be

Correct AnswerverifiedShow Answer

Correct Answerverified(a) Revenues were understated ...View AnswerShow Answer

A company depreciates its equipment $500 a year. The adjusting entry for December 31 is debit Depreciation Expense, $500 and credit Equipment, $500.

Correct AnswerverifiedShow Answer

The adjusting entry for rent earned that is currently recorded in the unearned rent account is

Correct AnswerverifiedShow Answer

Adjusting entries affect only expense and asset accounts.

Correct AnswerverifiedShow Answer

When is the adjusted trial balance prepared?

Correct AnswerverifiedShow Answer

Adjusting entries always include

Correct AnswerverifiedShow Answer

Journalize the six entries to adjust the accounts at December 31. (Hint: One of the accounts was affected by two different adjusting entries).

Correct AnswerverifiedShow Answer

A business pays weekly salaries of $20,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is

Correct AnswerverifiedShow Answer

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(a) Revenues were understated ...
View Answer

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