To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called Debit Depreciation Expense $578 and credit Accumulated Depreciation $578. b) Liabilities 83) Which of the following isnotconsidered an end-of-period adjusting entry?A) The entry to record the portion of unexpired insurance which has become expense during the period. Expenses increase stockholders' equity. b) Debit Interest Expense $2,100 and debit Accrued Interest Payable $4,200. FromBalanceSheetsDec. It therefore provides a plausible reason as to why human trafficking charges are often dropped or why traffickers are often charged under related crimes, such as forcible confinement, extortion, etc. The adjusting entry does not record entry for converting an asset to a liability. A. = 15 * 3/20 d. inventory, Which account would normally not require an adjusting entry? Depreciation on eligible infrastructure assets need not be recorded if the assets are being maintained at or abo, According to SFAC No. d) Prepaid expenses are shown in a special section of the income statement. Asset b. Treasury stock b. Paid-in capital c. Retained earnings d. Accumulated other comprehensive income e. Accrued issuances, What will be the effect on the accounting equation, when payment is made to the creditor of the business? Which of the following is not considered a basic type of adjusting entry? e. None of these. C. Assets - Liabilities - Dividends, Identify the type of account for the following: Equipment a. d. a computer technician has installed the latest software updates, but you have not received an invoice or made payment, Which one of the accounts below would likely be included in an accrual adjusting entry? d. $6,400, Smokey Company purchases a one-year insurance policy on July 1 for $3,600. If there is a balance in the prepaid rent account after adjusting entries are made, it represents a(n), When recording an adjusting entry for unearned revenue, a(n). The United Shipping Co. borrowed $25,000 at 12% interest on March 1, 2018. Increase in assets and increase in net income. Which of the following is considered to be an accrued expense? a. snow removal services that have been paid for three months in advance Accrued salaries owed to employees for October 30 and 31 are not considered in preparing the financial statements for the year ended October 31. b) $4,000 is paid in January for equipment with a useful life of four years. a. b. Unearned Revenue What amount of interest expense has accrued on the bank loan? a) Net income will be overstated and total assets will be understated. The fee for delivery is $500. (3) On December 1, rent on the office building had been paid for four months. a. asset, credit b. Identify whether the following item would be classified on a balance sheet as a current liability, a long term-liability or something else: Salaries payable. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay. d) Net income. Which of the following is most likely not considered an adjusting entry? Collection. a) Assets and liabilities b) Assets and owners' equity c) Assets and expenses d) Assets and revenues. c. used 2. \\ a. Liability, Asset b. Which of the following is not true regarding the asset-liability approach to defining accounting elements? -Fees earned in March that had been collected in advance: $3,600. b. only balance sheet accounts 1) Before making month-end adjustments, net income of Bobwhite Company was $232,000 for March. a) The entry to record unpaid expenses. C) Which of the following is not a characteristic of the accrual basis of accounting? 3321 (a) and 41 U.S.C.3901 ). a. only income statement accounts After recording these adjustments, net income for March is: First created in 1917 when the U.S. was entering World War I, the debt ceiling has been raised by Congress (and occasionally the president, when authorized to do so by Congress) dozens of times since then. Uploaded By ProfessorKnowledge3522. Adjusting entries are recorded to make adjustments to all general ledger and subsidiary-ledger accounts to reflect the true & correct value at the end of the fiscal reporting period. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over- or understated in 2018 and 2019 . The adjusting entry necessary at the end of the fiscal period ending on Tuesday is b) Prepaid expenses represent assets. Credit Interest Payable $2,500 Nearly 13 years after the crash, Barker attempted to address his fear of flying . The entry to record this event is an example of an adjusting entry: a. stockholders' equity d) Debit Interest Expense $2,100 and credit Accrued Interest Payable $4,200. Assets, capital, and withdrawals. B) Whenever expenses are not paid in cash. a. (1) A one-year bank loan of $720,000 at an annual interest rate of 12% had been obtained on December 1. d) Net income for Perfect Painting for 2018 is overstated. CHAPTER ONE. to identify the kind of entry that would increase th, Which of the following types of accounts have a normal debit balance? Which of the following statements is incorrect? A. b. depreciation School Columbia College; Course Title ACCT 280; Type. Accounts Receivable a. historical cost If an adjustment for salaries earned but not recorded or paid in the amount of $85,000 were to be omitted, how would this affect the financial statements? b. deferral basis c. $6,800 Test Prep. b) The entry to record uncollected revenues. c. net income or loss will be properly reported on the income statement 1) Adjusting entries: C. Received $3,800 for fees earned. a) In April, Daystar Company received payment from a customer for services that are performed in May. Where are the highest populations in Europe? d) Daystar Company receives payment in May for work to be performed in June and July. c. Prepaid expenses, land, and accounts receivable. a) Revenues, Expenses, and Capital b) Revenues, Expenses, and Withdrawals c) Assets, Liabilities, and Capital d) Assets, Liabilities, and Withdrawals. These items are not included as Itemized Deductions and can be entered independently. b. CPA wishes to use a representation letter as a substitute for performing other audit procedures. copyright 2003-2023 b. debit Salary Expense, $12,000; credit Dividends, $12,000 B) Indicate which items will be erroneously stated, because of the error, on (A) the income statement for the year and (B) the balance sheet as of October 31. 1) Adjusting entries help achieve the goals of accrual accounting by applying which two accounting principles? A) The variable being predicted is the Y variable. To see how XOM's P/E ratio stacks up to its peers, refer to Google Finance's Related Companies screen. Duty station Nairobi, Kenya. B) Revenue. b) Midwood Consultants made payment in January for office rent for the first three months of the year. a. Assets = Liabilities + Common Stock + Dividends - Revenue - Expenses b. a) It increases expenses and does not affect assets. a. debit Salaries Payable; credit Cash The lease requires monthly rent of $550, with 4 months paid in advance. Adjusting entries, also known as adjusting journal entries (AJE), are the entries made in a business firm's accounting journals to adapt or update the revenues and expenses accounts according to the accrual principle and the matching concept of accounting. c. Underrecording depreciation expense. a. depreciation expense for each major class of asset b. balances of major classes of depreciable assets, by nature or function c. accumulated depreciation on, Which of the following is not acceptable treatment for the presentation of current liabilities? A) Marketable Securities B) Equipment C) Prepaid Expenses D) Interest Receivable, Which of the following is a correct statement regarding the use of the modified approach for accounting for eligible infrastructure assets? Doing so: A. Violates professional standards. 1) The concept of materiality: Liabilities, expenses, and assets. b) To apportion unearned revenue. 6, expenses can be defined by which of the following? c) $1,200 cash dividends are declared and paid. Asset b. a. records revenues when they are earned and expenses when they are paid Echo Lake Resort has not yet received payment from the local business. E) running sum of forecast errors (RFSE). c. asset and one stockholders' equity account b) As a liability on the balance sheet. (5) All fees totaling $19,800 were earned during the month for clients who had paid in advance. b) Depreciation Under which circumstance would the veterinarian not adjust or cancel a fee for services? The monthly rent is $7,000. Toe researchers examined the link between engagement ring price (dollars) and level of appreciation of the recipient (measured on a 7-point scale where 1 = "not at all" and 7 = "to a great extent"). Borrowed $40,000 from First National Bank. $3,500. The relationship between the nozzle height and Gantry height is considered not to change, thus leveling only one corner and the . (4) Depreciation of office equipment is based on an estimated useful life of five years. Expenses have normal debit balances. . . A debit to an expense and a credit to an asset account. This was the question investigated in the Journal of Experimental Social Psychology (Vol. Find the matrix products. She seems nervous about it. When an automobile is being driven at vvv miles per hour, the average driver requires DDD feet of visibility to stop safely, where D=0.065v2+0.148vD=0.065 v^2+0.148 vD=0.065v2+0.148v. A debit to an expense and a credit to cash. a. failure to adjust Unearned Revenue to recognize revenue earned b. failure to record depreciation for the year c. failure to accrue interest payable d, Which of the following statements best describes tax results to a shareholder in a section 351 transaction when liabilities on property transferred to the corporation are assumed by the corporation? a. depreciation of long-term physical assets. Basic type of adjusting entry includes recording entry to convert a liability to a revenue, to convert an asset to an expense, and in order to record accrued unpaid expenses. Write offs. Our LIMITER plug-in takes all the uncertainty out of limiting by analyzing your audio and making intelligent suggestions as to the best settings for your master. User: 3/4 16/9 Weegy: 3/4 ? -Fees earned in March that had been collected in advance: $2,600. c. debit to Accounts Receivable and a credit to Wages Expense 1) The accountant for the Grassroots Company failed to make an adjusting entry to record revenue earned but not yet billed to customers. d. debit Supplies; credit Stockholders' Equity, Buster Industries pays weekly salaries of $30,000 on Friday for a five-day week ending on that day. 1) Unearned revenue is: Job categories Finance. FY22 net sales decreased (7.3%) to $3,922 million, organic sales decreased (0.5%) FY22 GAAP EPS of ($4.41), adjusted EPS of $2.09; Q4 net sales decreased (10.9%) to $983 million, = 15 ? Assets = liabilities + stockholders' equity c. Assets = liabilities d. Assets = liabilities + retained earnings, Which of the following is not a change in accounting estimate? Decrease in assets and reduction in net income. b) Realization principle Get access to this video and our entire Q&A library, Adjusting Entries: Definition, Types & Examples. a) Before financial statements and after a trial balance has been prepared. B) The asset-liability approach is arguably superior to the revenue-expens, Which of the following are NOT included in a postclosing trial balance? d) An overstatement of net income and an understatement of assets. Which ONE of the following items is NOT a type of stockholders' equity? Liability c. Equity d. Revenue e. Expense, Identify the type of account for the following: Legal Expense a. Identify at least two of these examples. 45, 2009). $400 . Considered in the past as being solely a rational being, nowadays, following specialist researches, man is also perceived as an emotional being, triggering emotions which, if appropriately . Contract type International ICA. Current assets b. Which of the following is NOT one of the three ways medical services can be achieved? Liabilities and Stockholders' Equity C. Revenues and Expenses D. Liabilities and Expenses, The adjusting entry to record an accrued expense is: a. 1) Videobusters, Inc. offered books of video rental coupons to its patrons at $40 per book. c. debit Prepaid Insurance, $11,000; credit Insurance Expense, $11,000 The balance in the Office Equipment account is $12,360; no change has occurred in the account during the year. All other trademarks and copyrights are the property of their respective owners. Because collecting the adjustment data requires time, the adjusting entries are often. b) Correct errors made during the accounting period. Maturity dates of long-term debt c. Methods of amortizing intangibles d. Composition of plant assets, Fill in the blanks with the category of the expanded accounting equation (assets; liabilities; owner, capital; owner, withdrawals; revenues; expenses). Net income for January will be overstated. d. Improperly expensing costs that should be capitalized. b) As an asset on the balance sheet. (b) Asset impa, Which of the following is considered in computing depreciation expense using the straight-line method? c) Only if each accounting period covered is a full year. b. debit Prepaid Rent, $24,000; credit Rent Expense, $8,000 Adjusting entries are necessary for the following items: a. The cost of insurance is considered an expense: Evenly over the term of the policy Adjusting entries are prepared: Statement of changes. A) b. asset, debit When preparing the financial statements for the year ended October 31, accrued salaries owed to employees for October 30 and 31 were omitted. a. c. book value These adjustments are discussed below. \text{Sales}&\text{700,000}\\ Valid Pupil Personnel Services Credential with academic school counseling emphasis is preferred. A GPA adjustment may occur under one of the following conditions: How to Calculate Your . Which of the following is an example of accrued revenue? b) At the end of January, Empire Company pays the custodian for January office cleaning services. c. debit Unearned Gym Memberships; credit Prepaid Gym Memberships Prepaid expenses are: Assets Accumulated Depreciation is: The depreciation expense recorded on an asset to date. Liability c. Equity d. Revenue e. Expense, Which one of the following represents the expanded basic accounting equation? Revenues, liabilities, capital b. Description This is an X-Axis gantry bed leveler, the first of its kind. d) Midwood Consultants received payment in February for consulting services rendered in March. c) Results in financial statements that are less useful to decision makers because many details have been omitted. Capital, assets c. Liability, expenses d. Assets, expenses e. Common stock, dividends, Which of the following are all temporary accounts? (a) Net income of the company (b) Balance in accumulated depreciation (c) Asset's fair value (d) Cost of inventory produced by equipment (e) Asset's his, Which balance sheet category reflects claims held by creditors against a company's economic resources? d) Assets = Liabilities + Paid-in Capital + Reven. Billing the patient for services and extending credit c. The use of outside collection services d. Bartering for services Click the card to flip Flashcards Learn Test Match Created by Nedina_Shavor Teacher a) Liabilities b) Assets c) Revenues d) Owner Equity. For the most part, is XOM's P/E ratio above or below that of its peers? The customer is the director of a nearby animal shelter. She has also heard that certain terms have special meanings in accounting relative to everyday use. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay. a. summarizes the changes in retained earnings for a specific period of time b. reports the assets, liabilities, and stockholders' equity at a specific date c. presents the revenues and expenses for a speci, What categories does commissions fall in: A. c) To accrue an uncollected revenue. Owners' Equity, Assets c. Liability, Expenses d. Assets, Expenses, Which of the following is a definition of expenses that clearly represents an asset-liability approach? (a) A power generation plant that normally takes two years to construct. c. debit Rent Expense, $24,000; credit Prepaid Rent, $8,000 b) Net income will be understated and total assets will be understated. Explain. Which of the following situations is not considered an adjustment? C) An entry to convert an asset to an expense. If $400 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is d) The entry to pay outstanding bills. Since LMA does not enter the trachea, it is less stimulating. 31,2018$85,0002018700,000Dec. a. c) $235,600. Payables a. c) $0 d) A liability. 1) Gordy's Corp. has seven employees. The list of disabilities covered under American with Disabilities Act (ADA) refers to all the disabilities for which an employee is protected from discrimination by employers. c. the IRR. D. Geologists. Rent Revenue 1,900. a. theater tickets sold last month for yesterday's performance Demand a reason for nonpayment. -is what's meant by the phrase "The domesticated generations fell Weegy: A suffix is added to the end of a word to alter its meaning. Adjusting entries are the journal entries posted in the books of accounts post the trial balance is prepared but before the preparation of financial statements.