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Winston Corp.had $1,800 of supplies on hand at January 1.During the year, supplies with a cost of $4,000 were purchased.At December 31, the actual supplies on hand amount to $1,300.After the adjustments are recorded and posted at December 31, determine the balances in the Supplies and Supplies Expense accounts. Winston Corp.had $1,800 of supplies on hand at January 1.During the year, supplies with a cost of $4,000 were purchased.At December 31, the actual supplies on hand amount to $1,300.After the adjustments are recorded and posted at December 31, determine the balances in the Supplies and Supplies Expense accounts.

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Expenses can be matched against revenue


A) if the earnings process is not complete.
B) when cash is collected from the sale of products.
C) through allocation to the accounting periods in which the benefits are recognized.
D) when payment is made for costs related to revenue.

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Tracy, Inc. Tracy, Inc. -Refer to the trial balance for Tracy, Inc. According to contracts, $4,810 of Unearned Service Revenue has been earned in July.Which of the following is the correct amount of Service Revenue to be reported in the July income statement? A) $20,410 B) $11,700 C) $21,320 D) $16,510 -Refer to the trial balance for Tracy, Inc. According to contracts, $4,810 of Unearned Service Revenue has been earned in July.Which of the following is the correct amount of Service Revenue to be reported in the July income statement?


A) $20,410
B) $11,700
C) $21,320
D) $16,510

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What happens to the accounting equation when the adjustment that recognizes accrued interest revenue is recorded?


A) Assets increase and liabilities increase.
B) Assets increase and stockholders' equity increases.
C) Assets decrease and liabilities decrease.
D) Stockholders' equity increases and decreases by the same amount.

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The amount in the Dividends account should be carried over from the adjusted trial balance of the 10-column work sheet to which of the following columns?


A) Income statement as a debit
B) Income statement as a credit
C) Balance sheet as a debit
D) Balance sheet as a credit

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Under the accrual basis of accounting, at what point in time should a publisher of magazines record revenue? ______________________________

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As revenue is earned...

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Which of the following concepts is important to accrual accounting?


A) Time period, because accrual accounting divides earnings into time periods
B) Monetary unit, because inflation is a big factor in the environment
C) Cash basis, because if cash is not received, revenue is not accrued
D) Entity concept, because personal transactions must be separated from business transactions

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Failure to record amounts earned for services provided to customers but not yet paid results in which of the following


A) Net income being overstated
B) No effect on total assets
C) Stockholders' equity being overstated
D) Total assets being understated

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On December 1, 2015, Twilight Corporation paid $8,000 rent in advance.The rent per month is $1,000.If Twilight's accounting period ends on December 31, 2015, what will be reported on the financial statements?


A) Prepaid Rent of $7,000 on its balance sheet at December 31, 2015
B) Prepaid Rent of $8,000 on its balance sheet at December 31, 2015
C) Rent Expense of $8,000 on its 2015 income statement
D) Rent Revenue of $7,000 on its 2015 income statement

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Which one of the following statements is true?


A) Recognition is concerned with the dollar amount of each economic effect that should be reported in the financial statements.
B) Measurement is concerned with how economic effects should be quantified.
C) The stability concept is concerned with identification of the specific entity for which economic effects are to be recognized and measured.
D) The monetary unit assumption is concerned with the valuation of economic effects in terms of current purchasing power.

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Based on its income for the month, Reel Company estimates that federal income taxes for the month of May will be $11,000.What is the effect of the adjustment on the financial statements?


A) Increase retained earnings
B) Increase income taxes expense
C) Increase net income
D) Decrease income taxes payable

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The difference between accrual-based revenue and accrual-based expenses is called _________________________.

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Wentworth Company received advance payments from customers during 2015 of $10,000.At December 31, 2015, $1,000 of the advance payments still had not been earned.After the adjustments are recorded and posted at December 31, 2015, the balances in the Unearned Service Revenue and Service Revenue accounts will be: Wentworth Company received advance payments from customers during 2015 of $10,000.At December 31, 2015, $1,000 of the advance payments still had not been earned.After the adjustments are recorded and posted at December 31, 2015, the balances in the Unearned Service Revenue and Service Revenue accounts will be:

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Failure to record the earned portion of unearned revenue would result in which of the following?


A) Net income being understated
B) No effect on total liabilities
C) Stockholders' equity being overstated
D) Total assets being understated

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An) results when cash is received before the related amount is reported on the income statement.

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Adjustments are recorded for all transactions involving outside entities.

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Why is the use of the U.S.dollar as a unit of measure for financial statement data in the U.S.widely accepted?


A) U.S.dollar remains stable over a long period of time.
B) U.S.dollar is universally recognized as a reliable financial measure.
C) U.S.dollar is the medium of monetary exchange in the U.S.
D) U.S.dollar is required for financial statement presentation by the FASB and SEC.

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After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns are $37,875 and $32,735, respectively.What is the amount of net income or net loss for the period?


A) $5,140 net income
B) $37,875 net loss
C) $5,140 net loss
D) $32,735 net income

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Accountants often prepare work sheets at the end of an accounting period in place of financial statements.

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Longitude Company borrowed on a two-year, 10%, $150,000 note on May 1, with interest and principal to be paid at maturity.How much interest will Longitude report on its income statement for the year ending December 31?


A) $ 10,000
B) $ 15,000
C) $ 30,000
D) $ 5,000

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Showing 41 - 60 of 161

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