FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: The Adjusting Process

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

Unearned Revenue is a(n) ________ account and carries a ________ normal balance.

A) liability; credit
B) asset; credit
C) revenue; debit
D) asset; debit

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

The adjusted trial balance shows ________.

A) account balances after adjustments
B) revenue and expense accounts only
C) account balances before adjustments
D) balance sheet accounts only

Correct Answer

verified

Show Answer

Question 63

True/False

Review LaterAdd Note

Under accrual accounting,transactions are recorded only when cash is received or paid.

The sum of all the depreciation expense recorded to date for a depreciable asset is called ________.

The revenue recognition principle is the basis for recording revenues―both when to record revenue and the amount of revenue to record.

On July 1,Alpha Inc.paid rent of $15,000 for a small equipment storage area for the period of July 1 till December 31.Provide the adjusting journal entry on July 31.(Ignore explanation)Assume the prepaid expense is initially recorded as an asset.

An adjusted trial balance does not list the revenues and expenses of a business.

In accounting,depreciation refers to the ________.

On December 15,Duncan Services Inc.collected revenue of $3,000 in advance from a new client,and agreed to provide services to the client for the period of December 15 through January 15 of the following year.Assume that the company records unearned revenues using the alternative treatment,and journalize the adjusting entry recorded on December 31.

Duncan Services Inc.records prepaid expenses as expenses when incurred,and unearned revenues as revenues when the payment is received in advance.At the end of the year,Duncan Services Inc.makes the necessary adjustments based on accrual basis accounting.On July 1,it paid rent for an office in the amount of $24,000 for the period July 1 through June 30 of the following year.Provide the year-end adjusting entry for rent prepayment.

Which of the following accounts would be used under the accrual method of accounting,but not under cash basis accounting?

On March 1,2014,Nortons Inc.paid $60,000 as office rent covering the three-month period ending May 31,2014.Journalize the entry on March 1 by using the alternative treatment of prepaid expenses.

Which of the following entries would be made because of the matching principle?

If an adjusting entry includes a debit to Rent Expense,that would indicate that the payment of rent had been previously recorded as a(n) ________.

The liability created when a business collects cash from its customers before completing a service or delivering a product is called ________.

Financial statements are prepared from the balances in a(n) ________.

An expense that has been incurred but not yet paid is called a(n) ________.

GAAP requires a public company to prepare a worksheet for financial reporting purposes.

Techno Technical Services is working on a six-month job for a client,starting on February 1.It will collect $30,000 from its customer when the job is finished.On March 1,the company's Accounts Receivable account had a debit balance of $5,000.At the end of March,after monthly adjusting entries have been made,what will be the balance in Accounts Receivable?

The entry to record depreciation includes a debit to the ________.