70.2K

Verified Solution

Link Copied!

tam 1. LO 4.1 Which of the following is any reporting period shorter than a full year (fiscal or calendar) and can encompass monthly, quarterly, or half-year statements? A. fiscal year B. interim period C. calendar year D. fixed year 2. LO 4.1 Which of the following is the federal, independent agency that provides oversight of public companies to maintain fair representation of company financial activities for investors to make informed decisions? A. IRS (Internal Revenue Service) B. SEC (Securities and Exchange Commission) C. FASB (Financial Accounting Standards Board) D. FDIC (Federal Deposit Insurance Corporation) 3. LO 4.1 Revenues and expenses must be recorded in the accounting period in which they were earned or incurred, no matter when cash receipts or outlays occur under which of the following accounting methods? A. accrual basis accounting B. cash basis accounting C. tax basis accounting D. revenue basis accounting 4. LO 4.1 Which of the following breaks down company financial information into specific time spans, and can cover a month, quarter, half-year, or full year? A. accounting period B. yearly period C. monthly period D. fiscal period 5. LO 4.1 Which of the following is a twelve-month reporting cycle that can begin in any month, except January 1, and records financial data for that twelve-month consecutive period? A fixed year B. interim period C. calendar year D. fiscal year 6. LO 4.2 Which type of adjustment occurs when cash is either collected or paid, but the related income or expense is not reportable in the current period? A. accrual B. deferral C. estimate D. cull Corting 7. LO 4.2 Which type of adjustment occurs when cash is not collected or paid, but the related income or expense is reportable in the current period? A. accrual B. deferral C. estimate D. cull 8. LO 4.2 If an adjustment includes an entry to a payable or receivable account, which type of adjustment is it? A accrual B. deferral C estimate D. cull 9. LO 4.2 If an adjustment includes an entry to Accumulated Depreciation, which type of adjustment is it? A. accrual B. deferral C estimate D. cull 10. LO 4.2 Rent collected in advance is an example of which of the following? A accrued expense B accrued revenue C. deferred expense (prepaid expense) D. deferred revenue (unoamed revenue) Editing Voice 11. LO 4.2 Rent paid in advance is an example of which of the following? A. accrued expense B accrued revenue C. deferred expense (prepaid expense) D. deferred revenue (uneared revenue) 12. LO 4.2 Salaries owed but not yet paid is an example of which of the following? A. accrued expense B. accrued revenue C. deferred expense (prepaid expense) D. deferred revenue (uneared revenue) 13. LO 4.2 Revenue earned but not yet collected is an example of which of the following? A. accrued expense B. accrued revenue C. deferred expense (prepaid expense) D. deferred revenue (uneamed revenue) Styles Editing Voice Seni 14. LO 4.3 What adjusting journal entry is needed to record depreciation expense for the period? A. a debit to Depreciation Expense; a credit to Cash B. a debit to Accumulated Depreciation; a credit to Depreciation Expense C. a debit to Depreciation Expense; a credit to Accumulated Depreciation D. a debit to Accumulated Depreciation, a credit to Cash 15. LO 4.3 Which of these transactions requires an adjusting entry (debit) to Unearned Revenue? A revenue earned but not yet collected B revenue collected but not yet earned C. revenue eamed before being collected, when it is later collected D. revenue collected before being earned, when it is later earned 16. LO 4.4 What critical purpose does the adjusted trial balance serve? A. It proves that transactions have been posted correctly B. It is the source document from which to prepare the financial statements C. It shows the beginning balances of every account, to be used to start the new year's records D. It proves that all journal entries have been made correctly 17. LO 4.4 Which of the following accounts balance would be a different number on the Balance Sheet than it is on the adjusted trial balance? A. accumulated depreciation Buneared service revenue C. retained earnings D. dividends 18. LO 4.5 On which financial statement would the Supplies account appear? A Balance Sheet B. Income Statement C. Retained Earnings Statement D. Statement of Cash Flows 19. LO 4.5 On which financial statement would the Dividends account appear? A. Balance Sheet B. Income Statement C. Retained Earnings Statement D. Statement of Cash Flows 20. LO 4.5 On which financial statement would the Accumulated Depreciation account appear? A. Balance Sheet B Income Statement C. Retained Earnings Statement D. Statement of Cash Flows I 21. LO 4.5 On which two financial statements would the Retained Earnings account appear? A Balance Sheet B. Income Statement C. Retained Earnings Statement D. Statement of Cash Flows EAL LO 4.2 The following accounts were used to make year-end adjustments. Identify the related account that is associated with this account the other account in the adjusting entry) A. Salaries Payable I B. Depreciation Expense C. Supplies D. Unearned Rent EA2. LO 4.2 and 4.3 Reviewing insurance policies revealed that a single policy was purchased on August 1, for one year's coverage, in the amount of $6,000. There was no previous balance in the Prepaid Insurance account at that time. Based on the information provided A. Make the December 31 adjusting journal entry to bring the balances to correct. I B. Using a T account. Show the impact that these transactions had. (both the purchase and the adjustment) EA3. LO 4.3 On July 1, a client paid an advance payment (retainer) of $5,000 to cover future legal services. During the period, the company completed $3,500 of the agreed-on services for the client. There was no beginning balance in the Unearned Revenue account for the period. Based on the information provided, A. Make the December 31 adjusting journal entry to bring the balances to correct. I B. Using a T account. Show the impact that these transactions had. (both the purchase and the adjustment) EA4. LO 4.3 Reviewing payroll records indicates that employee salaries that are due to be paid on January 3 include $3,575 in wages for the last week of December. There was no previous balance in the Salaries Payable account at that time. A. Make the December 31 adjusting joumal entry to bring the balances to correct. I B. Using a T account. Show the impact that these transactions had. (both the purchase and the adjustment) EAS. LO 4.3 Supplies were purchased on January 1, to be used throughout the year, in the amount of $8,500. On December 31, a physical count revealed that the remaining supplies totaled $1,200. There was no beginning of the year balance in the Supplies account. Based on the information provided A. Create journal entries for the original transaction I B. Create journal entries for the December 31 adjustment needed to bring the balances to correct I c. Using a T account. Show the activity, with ending balance EA6. LO 4.3 Prepare journal entries to record the following business transaction and related adjusting entry A. January 12, purchased supplies for cash, to be used all year, $3,850 I B. December 31, physical count of remaining supplies, 5800 EAZ. LO 4.3 Prepare journal entries to record the following adjustments, A. Insurance that expired this period, $18,000 I B. Depreciation on assets, $4,800 C. Salaries earned by employees but unpaid, S1,200

Answer & Explanation Solved by verified expert

See Answer