FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 15: Adjusting Entries and a Trial Balance

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 1

True/False

Review LaterAdd Note

Review Later

The tax rate associated with an income tax bracket is called the effective tax rate.

Correct Answer

verified

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

A business can use any 12-month period for reporting its financial performance.

Correct Answer

verified

True

Question 3

True/False

Review LaterAdd Note

The Income Summary account is one of the accounts used to adjust the Merchandise Inventory account at the end of the fiscal period.

For a business using the periodic inventory method, the balance of Merchandise Inventory in the unadjusted trial balance represents the beginning balance plus all purchases of merchandise made in the fiscal period.

Revenue earned in one fiscal period but not received until a later fiscal period is called accrued revenue.

For a business using the periodic inventory method, purchases are recorded in the Merchandise Inventory account.

The book value of a plant asset is its original cost minus accumulated depreciation.

Depreciation expense is calculated using all of the following amounts except

Annual straight-line depreciation expense of a plant asset is calculated as the original cost of the plant asset divided by the years of estimated useful life.

A physical inventory is always conducted at the end of each

Estimated federal income tax must be paid in monthly installments.

Functional depreciation should be considered in estimating the useful life of computer equipment.

Recording depreciation expenses is an application of the accounting concept

The value of the insurance coverage used is recorded as a debit to Insurance Expense.

Cash and other assets expected to be exchanged for cash or consumed within a year are called liquid assets.

The difference between an asset's account balance and its related contra account is called book value.

The adjustment unique to merchandising businesses adjusts

All accounts are listed on the unadjusted trial balance regardless of whether there is a balance or not.

The adjustment for unpaid federal income tax includes a(n)

Depreciation expense is recorded on all plant assets.