Question 1

An adjusting entry would adjust an expense account so the expense is reported when incurred.

Accepted Answer

A) True 
 B)False

Question 2

At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following 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 statement of stockholders' equity 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

Question 3

Adjusting entries affect balance sheet accounts to the exclusion of income statement accounts.

Accepted Answer

A) True 
 B)False

Question 4

All of the following statements regarding vertical analysis are true except

Accepted Answer

A)  vertical analysis may be prepared for several periods to analyze changes in relationships over time
B)  in a vertical analysis of a balance sheet, each asset item is stated as a percent of total assets
C)  in a vertical analysis of an income statement, each item is stated as a percent of total expenses
D)  major differences between a company's vertical analysis and industry averages should be investigated

Question 5

The adjusting entry for gym memberships earned that were previously recorded in the unearned gym memberships account is

Accepted Answer

A)  debit Unearned Gym Memberships; credit Gym Memberships Revenue
B)  debit Gym Memberships Revenue; credit Unearned Gym Memberships
C)  debit Unearned Gym Memberships; credit Prepaid Gym Memberships
D)  debit Gym Memberships Expense; credit Unearned Gym Memberships

Exam 3: The Adjusting Process

An adjusting entry would adjust an expense account so the expense is reported when incurred.

Correct Answer
verified

Adjusting entries affect balance sheet accounts to the exclusion of income statement accounts.

Correct Answer
verified

The adjusting entry for gym memberships earned that were previously recorded in the unearned gym memberships account 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 is true?

Correct Answer
verified

All of the following statements regarding vertical analysis are true except

Correct Answer
verified

Exam 3: The Adjusting Process

An adjusting entry would adjust an expense account so the expense is reported when incurred.

Correct AnswerverifiedShow Answer

Adjusting entries affect balance sheet accounts to the exclusion of income statement accounts.

Correct AnswerverifiedShow Answer

The adjusting entry for gym memberships earned that were previously recorded in the unearned gym memberships account 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 is true?

Correct AnswerverifiedShow Answer

All of the following statements regarding vertical analysis are true except

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified