Filters
Question type
Study Flashcards

At the end of the year,accrual adjusting entries could include a:


A) debit to an expense and a credit to an asset.
B) credit to a revenue and a debit to an expense.
C) debit to cash and a credit to contributed capital.
D) debit to an expense and a credit to a liability.

E) A) and B)
F) B) and C)

Correct Answer

verifed

verified

A company pays wages every two weeks.Wages amount to $100 a day,7 days a week.On March 31,the company pays wages for the two weeks ending March 24.At the end of the month,the related adjusting journal entry will include a


A) debit to Wages Payable for $1,400 and a credit to Wages Expense for $1,400.
B) debit to Wage Expense for $700 and a credit to Wages Payable for $700.
C) debit to Wages Payable for $700 and a credit to Cash for $700.
D) debit to Wages Expense for $1,400 and a credit to Wages Payable for $1,400.

E) A) and C)
F) None of the above

Correct Answer

verifed

verified

After preparing adjusting entries,the equality of recorded debits and credits is checked by preparing a(n) :


A) post-closing trial balance.
B) adjusted trial balance.
C) income statement.
D) balance sheet.

E) B) and D)
F) A) and B)

Correct Answer

verifed

verified

At the end of the accounting period:


A) all accounts are closed.
B) temporary accounts are closed;permanent accounts are not.
C) permanent accounts are closed;temporary accounts are not.
D) only accounts with a credit balance are closed.

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

Adjusting entries often involve cash.

A) True
B) False

Correct Answer

verifed

verified

The purpose of adjusting entries is to transfer net income and dividends to retained earnings.

A) True
B) False

Correct Answer

verifed

verified

Which of the following statements regarding the presentation of a trial balance is correct?


A) The adjusted trial balance shows the end-of-year balance for Retained Earnings.
B) An adjusted trial balance presents account balances in the same level of detail as in the presentation of the financial statements.
C) The order of accounts is assets,liabilities,stockholders' equity,dividends,revenues and expenses.
D) The adjusted trial balance shows all the debit and credit postings to all the ledger accounts.

E) All of the above
F) A) and B)

Correct Answer

verifed

verified

The Treasury Bank Corporation had retained earnings at the end of December 31,2013 of $450,000.During 2014,the company had net income of $170,000 and declared dividends of $20,000.Retained earnings on the balance sheet as of December 31,2014 will be:


A) $430,000.
B) $600,000.
C) $620,000.
D) $640,000.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Which of the following would appear in the debit column of an adjusted trial balance?


A) Service revenue.
B) Dividends declared.
C) Accumulated depreciation.
D) Unearned revenue.

E) None of the above
F) B) and D)

Correct Answer

verifed

verified

One of the purposes of the closing entries is to bring the balances in all asset,liability,revenue,and expense accounts down to zero to start the next accounting period.

A) True
B) False

Correct Answer

verifed

verified

Failure to accrue wages would not affect which one of the following financial statements?


A) Balance sheet.
B) Income statement.
C) Retained earnings statement.
D) Cash flow statement.

E) C) and D)
F) All of the above

Correct Answer

verifed

verified

A company has a loan that accrues interest at a rate of $20 a day.The company pays the interest once a quarter.Which of these would be an accurate adjustment for a month in which no payments are made?


A) Debit Interest Payable and credit Interest Expense.
B) Debit Notes Payable and credit Cash.
C) Debit Interest Expense and credit Interest Payable.
D) Debit Cash and credit Notes Payable.

E) B) and D)
F) C) and D)

Correct Answer

verifed

verified

What is the amount of net income (net loss) for the year?


A) ($2,000)
B) ($3,800)
C) ($1,600)
D) ($3,300)

E) None of the above
F) A) and C)

Correct Answer

verifed

verified

If total debits are not equal to total credits in an adjusted trial balance,which of the following errors may have occurred?


A) Posting Wage Expense to Administrative Expenses.
B) Debiting Interest Payable instead of debiting Interest Expense.
C) Recording a transaction twice.
D) Posting a credit to Wages Payable as a debit.

E) B) and C)
F) A) and B)

Correct Answer

verifed

verified

A company originally recorded Prepaid Rent.As of the end of the accounting year,part of this is no longer prepaid.If no adjustment is made to record this expiration,which of the following will occur?


A) Assets will be understated and expenses will be overstated.
B) Assets will be overstated and expenses will be understated.
C) Assets and expenses will be overstated.
D) Assets and expenses will be understated.

E) B) and D)
F) A) and C)

Correct Answer

verifed

verified

During the month,a company uses up $4,000 of supplies.At the end of the month,the related adjusting journal entry would result in:


A) a decrease in an asset and an equal decrease in expenses.
B) an increase in an asset and an equal increase in expenses.
C) a decrease in an asset and an equal increase in expenses.
D) an increase in an asset and a decrease in expenses.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

The asset account Office Supplies has a balance of $800 at the beginning of the year.The amount on hand at the end of the year is $500.The company has calculated the Office Supplies Expense for the year to be $3,500.Based on this information,what amount of office supplies was purchased during the year?


A) $0
B) $4,000
C) $3,200
D) $3,000

E) None of the above
F) B) and C)

Correct Answer

verifed

verified

One major difference between deferral and accrual adjustments is:


A) accrual adjustments affect income statement accounts and deferral adjustments affect balance sheet accounts.
B) deferral adjustments increase net income and accrual adjustments decrease net income.
C) deferral adjustments are made under the cash basis of accounting and accrual adjustments are made under the accrual basis of accounting.
D) accounts affected by an accrual adjustment always go in the same direction (i.e. ,both accounts are increased or both accounts are decreased) and accounts affected by a deferral adjustment always go in opposite directions.

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

On December 31,2013,the balance in retained earnings is $20,000.On December 31,2014,the balance in retained earnings is $19,100.During 2014,dividends of $4,000 were declared and paid.What is the amount of net income for 2014?


A) $4,900
B) $3,100
C) $900
D) $(900)

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

Recording an adjusting journal entry to recognize depreciation would cause which of the following?


A) An increase in liabilities and expenses,and a decrease in stockholders' equity.
B) A decrease in assets and stockholders' equity,and an increase in expenses.
C) A decrease in assets,an increase in liabilities,and an increase in expenses.
D) An increase in assets,an increase in liabilities,and a decrease in expenses.

E) A) and D)
F) None of the above

Correct Answer

verifed

verified

Showing 41 - 60 of 147

Related Exams

Exam 1

Business Decisions and Financial Accounting

142 Questions

Exam 2

The Balance Sheet

147 Questions

Exam 3

The Income Statement

144 Questions

Exam 5

Financial Reporting and Analysis

141 Questions

Exam 6

Internal Control, Cash, and Merchandise Sales

144 Questions

Exam 7

Inventories and Cost of Goods Sold

155 Questions

Exam 8

Receivables, Bad Debt Expense, and Interest Revenue

146 Questions

Exam 9

Long-Lived Tangible and Intangible Assets

145 Questions

Exam 10

Liabilities

145 Questions

Exam 11

Stockholders Equity

146 Questions

Exam 12

Statement of Cash Flows

147 Questions

Exam 13

Measuring and Evaluating Financial Performance

147 Questions

Show Answer