Question 1

when the services are rendered without regard to when cash is received

Accepted Answer

Using accrual accounting, revenue is recorded and reported only

Question 2

when they are incurred, whether or not cash is paid

Accepted Answer

Using accrual accounting, expenses are recorded and reported only

Question 3

Matching

Accepted Answer

The accounting principle upon which deferrals and accruals are based is

Question 4

been earned and not recorded as revenue

Accepted Answer

Prior to the adjusting process, accrued revenue has

Question 5

not earned but the cash has been received

Accepted Answer

Deferred revenue is revenue that is

Question 6

needed to bring accounts up to date and match revenue and expense

Accepted Answer

Adjusting entries are

Question 7

accrued

Accepted Answer

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

Question 8

a computer technician has installed the latest software updates, but you have not received an invoice or made payment

Accepted Answer

Which of the following is considered to be an accrued expense?

Question 9

Interest Expense

Accepted Answer

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

Question 10

deferral

Accepted Answer

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

Question 11

debit Rent Expense, $8,000; credit Prepaid Rent, $8,000

Accepted Answer

The balance in the prepaid rent account before adjustment at the end of the year is $32,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is

Question 12

book value

Accepted Answer

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

Question 13

debit Depreciation Expense; credit Accumulated Depreciation.

Accepted Answer

The adjusting entry to record the depreciation of a building for the fiscal period is

Question 14

asset, debit for insurance

Accepted Answer

The type of account and normal balance of Prepaid Insurance is

Question 15

debit to Wages Expense and a credit to Wages Payable

Accepted Answer

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

Question 16

liability

Accepted Answer

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

Question 17

decrease liabilities, increase revenues

Accepted Answer

Unearned Subscriptions 11,500  Subscriptions Earned 11,500

Question 18

asset, debit for expense

Accepted Answer

The account type and normal balance of Prepaid Expense is

Question 19

credit to Salaries Payable of $16,000

Accepted Answer

A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day. The adjusting entry necessary at the end of the fiscal period ending on the second Wednesday of the pay period includes a

Question 20

$81,244

Accepted Answer

The net income reported on the income statement is $89,029. However, adjusting entries have not been made at the end of the period for supplies expense of $3,584 and accrued salaries of $4,201. Net income, as corrected, is

Question 21

net income for the year will be overstated.

Accepted Answer

At the end of the fiscal year, the usual adjusting entry to prepaid insurance to record expired insurance was omitted. Which of the following statements is true?

Question 22

net income will be overstated for the current year

Accepted Answer

At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following is true?

Question 23

Accrual basis accounting reports revenues and expenses in the period in which a service has been performed .Cash basis accounting reports revenues and expenses when cash is received or paid

Accepted Answer

Explain the difference between accrual basis accounting and cash basis accounting.

Acct 201 CH. 3

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