Question 1

What is the purpose of the adjusted trial balance?

Accepted Answer

A)  to verify that all of the adjusting entries have been posted
B)  to verify that the net income (loss)  is correctly reported
C)  to verify that no adjusting journal entry has been omitted
D)  to verify that the debits and credits balanceE) All of the above
F) B) and C)

Question 2

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

Accepted Answer

A)  Record payment of fees earned.
B)  Record fees earned at the end of the month.
C)  Record fees that have not been earned at the end of the month.
D)  Record payment of fees to be earned.E) B) and C)
F) A) and D)

Question 3

The following adjusting journal entry found in the journal is missing an explanation.Select the best explanation for the entry.

Accepted Answer

A)  Record payment of wages.
B)  Record wages paid last month.
C)  Record wages paid in advance.
D)  Record wages expense incurred and to be paid next month.E) B) and D)
F) C) and D)

Question 4

The net book value of a fixed asset is determined by the original cost

Accepted Answer

A)  less accumulated depreciation
B)  less market value
C)  less accumulated depreciation plus depreciation expense
D)  plus accumulated depreciationE) B) and D)
F) B) and C)

Question 5

Prior to the adjusting process,accrued expenses have

Accepted Answer

A)  not yet been incurred, paid, or recorded
B)  been incurred, have not been paid, but have been recorded
C)  been incurred but not paid and not recorded
D)  been paid but have not yet been incurredE) B) and D)
F) A) and D)

Question 6

A company pays an employee $3,000 for a five-day workweek,Monday-Friday.The adjusting entry on December 31,which is a Wednesday,is a debit to Wages Expense of $1,800,and a credit to Wages Payable of $1,800.

Accepted Answer

A) True 
 B)False

Question 7

By matching revenue earned during the accounting period to related incurred expenses,

Accepted Answer

A)  net income or loss will always be underestimated
B)  net income or loss will always be overestimated
C)  net income or loss will be properly reported on the income statement
D)  net income or loss will not be determinedE) C) and D)
F) B) and D)

Question 8

On January 1,DogMart Company purchased a two-year liability insurance policy for $22,800 cash.The purchase was recorded to Prepaid Insurance.Prepare the January 31 adjusting entry.

Accepted Answer

$22,800/24...

Question 9

The unexpired insurance at the end of the fiscal period represents a (n)

Accepted Answer

A)  accrued asset
B)  accrued liability
C)  accrued expense
D)  deferred expenseE) B) and D)
F) All of the above

Question 10

The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as

Accepted Answer

A)  stockholders' equity
B)  an asset
C)  a contra asset
D)  a liabilityE) A) and B)
F) None of the above

Question 11

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

Accepted Answer

A)  Adjust supplies inventory to actual.
B)  Record purchase of supplies.
C)  Reduce supplies expense.
D)  Record sale of supplies.E) None of the above
F) C) and D)

Question 12

The system of accounting where revenues are recorded when they are earned and expenses are recorded when they are incurred is called the cash basis of accounting.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following pairs of accounts could not appear in the same adjusting entry?

Accepted Answer

A)  Fees Earned and Unearned Fees
B)  Interest Income and Interest Expense
C)  Rent Expense and Prepaid Rent
D)  Salaries Payable and Salaries ExpenseE) None of the above
F) A) and B)

Question 14

On December 31,a business estimates depreciation on equipment used during the first year of operations to be $2,900.
(a)Journalize the adjusting entry required on December 31.
(b)If the adjusting entry in 
(a)were omitted,which items would be erroneously stated on 
(1)the income statement for the year and 
(2)the balance sheet as of December 31?

Accepted Answer

The answer of On December 31,a business estimates depreciation on...

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Adjusting entries affect at least one

Accepted Answer

A)  income statement account and one balance sheet account
B)  revenue and the dividends account
C)  asset and one owner's equity account
D)  revenue and one owner's equity accountE) C) and D)
F) A) and D)

Question 17

Fees payable would appear on the balance sheet as a (n)

Accepted Answer

A)  asset
B)  liability
C)  fixed asset
D)  unearned revenueE) A) and B)
F) A) and C)

Question 18

Data for an adjusting entry described as "accrued wages,$2,020" requires a

Accepted Answer

A)  debit to Wages Expense and a credit to Wages Payable
B)  debit to Wages Payable and a credit to Wages Expense
C)  debit to Accounts Receivable and a credit to Wages Expense
D)  debit to Dividends and a credit to Wages PayableE) A) and B)
F) A) and C)

Question 19

Match the type of account (a through e)  with the business transactions that follow.
-Paid for one year's insurance policy.

Accepted Answer

A)  Prepaid expense
B)  Accrued expense
C)  Unearned revenue
D)  Accrued revenue
E)  None of these choicesF) A) and C)
G) A) and E)

Question 20

A company depreciates its equipment $500 a year.The adjusting entry on December 31 is a debit to Depreciation Expense of $500 and a credit to Equipment of $500.

Accepted Answer

A) True 
 B)False

Exam 3: The Adjusting Process

Fees payable would appear on the balance sheet as a (n)

Correct Answer
verified

On January 1,DogMart Company purchased a two-year liability insurance policy for $22,800 cash.The purchase was recorded to Prepaid Insurance.Prepare the January 31 adjusting entry.

Correct Answer
verified
$22,800/24...
View Answer

Prior to the adjusting process,accrued expenses have

Correct Answer
verified

Adjusting entries affect at least one

Correct Answer
verified

A company depreciates its equipment $500 a year.The adjusting entry on December 31 is a debit to Depreciation Expense of $500 and a credit to Equipment of $500.

Correct Answer
verified

A company pays an employee $3,000 for a five-day workweek,Monday-Friday.The adjusting entry on December 31,which is a Wednesday,is a debit to Wages Expense of $1,800,and a credit to Wages Payable of $1,800.

Correct Answer
verified

The net book value of a fixed asset is determined by the original cost

Correct Answer
verified

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

Correct Answer
verified

The unexpired insurance at the end of the fiscal period represents a (n)

Correct Answer
verified

The system of accounting where revenues are recorded when they are earned and expenses are recorded when they are incurred is called the cash basis of accounting.

Correct Answer
verified

Which of the following pairs of accounts could not appear in the same adjusting entry?

Correct Answer
verified

Correct Answer
verified

What is the purpose of the adjusted trial balance?

Correct Answer
verified

The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as

Correct Answer
verified

The following adjusting journal entry found in the journal is missing an explanation.Select the best explanation for the entry.

Correct Answer
verified

By matching revenue earned during the accounting period to related incurred expenses,

Correct Answer
verified

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

Correct Answer
verified

Data for an adjusting entry described as "accrued wages,$2,020" requires a

Correct Answer
verified

Match the type of account (a through e) with the business transactions that follow. -Paid for one year's insurance policy.

Correct Answer
verified

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

Correct Answer
verified

Exam 3: The Adjusting Process

Fees payable would appear on the balance sheet as a (n)

Correct AnswerverifiedShow Answer

On January 1,DogMart Company purchased a two-year liability insurance policy for $22,800 cash.The purchase was recorded to Prepaid Insurance.Prepare the January 31 adjusting entry.

Correct Answerverified$22,800/24...View AnswerShow Answer

Prior to the adjusting process,accrued expenses have

Correct AnswerverifiedShow Answer

Adjusting entries affect at least one

Correct AnswerverifiedShow Answer

A company depreciates its equipment $500 a year.The adjusting entry on December 31 is a debit to Depreciation Expense of $500 and a credit to Equipment of $500.

Correct AnswerverifiedShow Answer

A company pays an employee $3,000 for a five-day workweek,Monday-Friday.The adjusting entry on December 31,which is a Wednesday,is a debit to Wages Expense of $1,800,and a credit to Wages Payable of $1,800.

Correct AnswerverifiedShow Answer

The net book value of a fixed asset is determined by the original cost

Correct AnswerverifiedShow Answer

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

Correct AnswerverifiedShow Answer

The unexpired insurance at the end of the fiscal period represents a (n)

Correct AnswerverifiedShow Answer

The system of accounting where revenues are recorded when they are earned and expenses are recorded when they are incurred is called the cash basis of accounting.

Correct AnswerverifiedShow Answer

Which of the following pairs of accounts could not appear in the same adjusting entry?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is the purpose of the adjusted trial balance?

Correct AnswerverifiedShow Answer

The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as

Correct AnswerverifiedShow Answer

The following adjusting journal entry found in the journal is missing an explanation.Select the best explanation for the entry.

Correct AnswerverifiedShow Answer

By matching revenue earned during the accounting period to related incurred expenses,

Correct AnswerverifiedShow Answer

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

Correct AnswerverifiedShow Answer

Data for an adjusting entry described as "accrued wages,$2,020" requires a

Correct AnswerverifiedShow Answer

Match the type of account (a through e) with the business transactions that follow. -Paid for one year's insurance policy.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
$22,800/24...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified