Accounting 1 CH3 Review(from CH3 quiz)

The supplies account has a balance of $2,100 at the beginning of the year and was debited during the year for $2,300, representing the total of supplies purchased during the year. 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

The net book value of a fixed asset is determined by

If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n)

A business pays weekly salaries of $25,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is

Which one of the accounts below would likely be included in an accrual adjusting entry?

Generally accepted accounting principles requires that companies use the _____ of accounting.

As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called

Which of the following is considered to be unearned revenue? -Concert tickets sold last month for yesterday's performance -Concert tickets sold yesterday on credit for yesterday's performance -Concert tickets that were not sold for the current performance -Concert tickets sold for next month's performance

The general term employed to indicate an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is

The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed

The type of account and normal balance of Unearned Rent is

The cash basis of accounting records revenues and expenses when the cash is exchanged while the accrual basis of accounting

Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n)

Unearned rent, representing rent for the next six months' occupancy, would be reported on the landlord's balance sheet as a(n)

Adjusting entries always include

Depreciation Expense and Accumulated Depreciation are classified, respectively, as

Which of the following is an example of a prepaid expenses? -Supplies -Accounts Receivable -Unearned Subscriptions -Unearned Fees

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

Adjusting entries affect at least one

The net income reported on the income statement is $58,000. However, adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $1,300. Net income, as corrected, is

Adjusting entries are

The entry to adjust for the cost of supplies used during the accounting period is

Using accrual accounting, revenue is recorded and reported only

Austin, Inc. made a Prepaid Rent payment of $3,500 on January 1st. The company's monthly rent is $700. The amount of Prepaid Rent that would appear on the January 31 balance sheet after adjustment is:

What is the purpose of the adjusted trial balance?