Math SS#3 – Speech or Presentation Example

Answers are highlighted in yellow SSQ-CH3 Start     26 Sep 2008 at 02:00 PM Due     22 Oct 2008 at 01:00 AM Access after Due     Yes. Mark Late
Graded:    No
Post-Lecture, Question 1
Adjustments would not be necessary if financial statements were prepared to reflect net income from:
lifetime operations.
monthly operations.
interim operations.
fiscal year operations.
Post-Lecture, Question 2
Turners Tune-up Shop follows the revenue recognition principle. Turner services a car on June 30. The customer picks up the vehicle on July 1 and mails the payment to Turner on July 5. Turner receives the check in the mail on July 6. When should Turner show that the revenue was earned?
July 1
July 5
July 6
June 30
Post-Lecture, Question 3
Accounts often need to be adjusted because:
many transactions affect more than one time period.
management cant decide what they want to report.
there are never enough accounts to record all the transactions.
there are always errors made in recording transactions.
Post-Lecture, Question 4
A liability – revenue relationship exists with:
accrued revenue adjusting entries.
prepaid expense adjusting entries.
accrued expense adjusting entries.
unearned revenue adjusting entries.
Post-Lecture, Question 5
Reyes Realty Company received a check for $27,000 on August 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent was credited for the full $27,000. Financial statements will be prepared on August 31. Reyes Realty should make the following adjusting entry on August 31:
debit Unearned Rent, $4,500; credit Rental Revenue, $4,500.
debit Rental Revenue, $4,500; credit Unearned Rent, $4,500.
debit Unearned Rent, $27,000; credit Rental Revenue, $27,000.
debit Cash, $27,000; credit Rental Revenue, $27,000.
Post-Lecture, Question 6
A retail store signs a four-month note payable to help finance increases in inventory for the Christmas season. The note is signed on October 1 in the amount of $40,000 with annual interest of 12%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest?
Interest Expense
1,200
        Interest Payable
                1,200
Interest Expense
1,600
        Interest Payable
                1,600
Interest Expense
1,200
        Cash
                1,200
Interest Expense
1,200
        Note Payable
                1,200
Post-Lecture, Question 7
Which of the following statements is not true?
An adjusted trial balance should show ledger account balances.
An adjusted trial balance is prepared after the financial statements have been prepared.
An adjusted trial balance can be used to prepare financial statements.
An adjusted trial balance proves the equality of the debit and credit balance accounts in the ledger.
Post-Lecture, Question 8
Arturo is an accountant who requires that his clients pay him in advance of accounting services rendered. Arturo routinely credits Accounting Service Revenue when his clients pay him in advance. In May, Arturo collected $6,000 in advance fees and completed 75% of the work related to these fees. What adjusting entry is required by Arturos firm at the end of May?
Unearned Revenue
1,500
        Accounting Service Revenue
                1,500
Accounting Service Revenue
1,500
        Unearned Revenue
                1,500
Unearned Revenue
4,500
        Accounting Service Revenue
                4,500
Cash
6,000
        Accounting Service Revenue
                6,000
Self Test Quiz, Question 1
The revenue recognition principle dictates that revenue be recognized in the accounting period before it is earned.
False
True
Self Test Quiz, Question 2
Adjusting entries are required every time financial statements are prepared.
True
False
Self Test Quiz, Question 3
Accumulated Depreciation is an asset account.
False
True
Self Test Quiz, Question 4
Every adjusting entry affects one balance sheet account and one income statement account.
True
False
Self Test Quiz, Question 5
Financial statements can be prepared directly from an adjusted trial balance.
False
True
Self Test Quiz, Question 6
The use of alternative adjusting entries does not apply to accrued revenues and accrued expenses.
False
True
Self Test Quiz, Question 7
An accounting time period that is one year in length is referred to as
a calendar year.
a fiscal year.
a quarterly period.
an interim period.
Self Test Quiz, Question 8
The revenue recognition principle dictates that revenue be recognized in the accounting period
in which it is collected.
after it is earned.
in which it is earned.
before it is earned.
Self Test Quiz, Question 9
Expenses paid and recorded as assets before they are used are called
interim expenses.
accrued expenses.
prepaid expenses.
unearned expenses.
Self Test Quiz, Question 10
Revenues earned but not yet received in cash are referred to as
accrued revenues.
prepaid revenues.
interim revenues.
unearned revenues.
Self Test Quiz, Question 11
The adjusting entry for unearned revenues affects
expenses and liabilities.
assets and revenues.
assets and expenses.
liabilities and revenues.
Self Test Quiz, Question 12
The adjusting entry for accrued expenses affects
liabilities and revenues.
expenses and liabilities.
assets and revenues.
assets and expenses.
Self Test Quiz, Question 13
Which of the following statements related to the adjusted trial balance is incorrect?
Financial statements can be prepared directly from the adjusted trial balance.
It shows the balances of all accounts at the end of the accounting period.
It proves the equality of the total debit balances and the total credit balances in the ledger.
It is prepared before adjusting entries have been made.
Self Test Quiz, Question 14
Each adjusting entry affects
expense accounts only.
income statement accounts only.
both balance sheet and income statement accounts.
balance sheet accounts only.
Self Test Quiz, Question 15
An adjusting entry that debits an asset and credits a revenue is necessary for
prepaid expenses.
accrued revenues.
accrued expenses.
unearned revenues.
Self Test Quiz, Question 16
An adjusting entry that debits an expense and credits an asset is necessary for
prepaid expenses.
unearned revenues.
accrued revenues.
accrued expenses.
Self Test Quiz, Question 17
Under the cash basis of accounting, revenue is only recorded when
it is earned.
cash is received.
it is incurred.
services are performed.
Self Test Quiz, Question 18
An expense is recorded under the cash basis only when
it is earned.
services are performed.
it is incurred.
cash is paid.
Self Test Quiz, Question 19
The Accumulated Depreciation account is a(n)
liability.
contra asset.
asset.
expense.
Self Test Quiz, Question 20
If an adjusting entry for depreciation is not made
assets will be understated.
net income will be understated.
expenses will be understated.
owners equity will be understated.
Self Test Quiz, Question 21
If the adjusting entry for unearned revenues is not made
revenues will be overstated.
net income will be overstated.
liabilities will be overstated.
assets will be overstated.
Self Test Quiz, Question 22
If unearned revenues are initially recorded as revenues, the adjusting entry to recognize unearned revenues at the end of an accounting period will include a:
credit to an asset account.
debit to a revenue account.
credit to an expense account.
debit to an unearned revenue account.
Self Study Quiz, Question 1
The time period assumption states that:
the economic life of a business can be divided into artificial time periods.
the fiscal year should correspond with the calendar year.
revenue should be recognized in the accounting period in which it is earned.
expenses should be matched with revenues.
Self Study Quiz, Question 2
The principle or assumption dictating that efforts (expenses) be matched with accomplishments (revenues) is the:
revenue recognition principle.
matching principle.
cost assumption.
periodicity principle.
Self Study Quiz, Question 3
One of the following statements about the accrual basis of accounting is false. That statement is:
Revenue is recorded only when cash is received, and expense is recorded only when cash is paid.
Events that change a companys financial statements are recorded in the periods in which
the events occur.
This basis is in accord with generally accepted accounting principles.
Revenue is recognized in the period in which it is earned.
Self Study Quiz, Question 4
Adjusting entries are made to ensure that:
expenses are recognized in the period in which they are incurred.
revenues are recorded in the period in which they are earned.
balance sheet and income statement accounts have correct balances at the end of an accounting period.
All answers are applicable.
Self Study Quiz, Question 5
Each of the following is a major type (or category) of adjusting entries except:
accrued revenues.
prepaid expenses.
accrued expenses.
earned revenues.
Self Study Quiz, Question 6
The trial balance shows Supplies $1,350 and Supplies Expense $0. If $600 of supplies are on hand at the end of the period, the adjusting entry is:
Supplies
750
      Supplies Expense
      750
Supplies Expense
600
      Supplies
      600
Supplies
600
      Supplies Expense
      600
Supplies Expense
750
      Supplies
      750
Self Study Quiz, Question 7
Adjustments for unearned revenues:
decrease revenues and decrease assets.
increase assets and increase revenues.
have an assets and revenues account relationship.
decrease liabilities and increase revenues.
Self Study Quiz, Question 8
Adjustments for accrued revenues:
decrease assets and revenues.
decrease liabilities and increase revenues.
have a liabilities and revenues account relationship.
have an assets and revenues account relationship.
Self Study Quiz, Question 9
Kathy Siska earned a salary of $400 for the last week of September. She will be paid on October 1. The adjusting entry for Kathys employer at September 30 is:
Salaries Expense
400
      Cash
      400
Salaries Payable
400
      Cash
      400
No entry is required.
Salaries Expense
400
      Salaries Payable
      400
Self Study Quiz, Question 10
Which of the following statements is incorrect concerning the adjusted trial balance?
The adjusted trial balance provides the primary basis for the preparation of financial statements.
The adjusted trial balance lists the account balances segregated by assets and liabilities.
The adjusted trial balance is prepared after the adjusting entries have been journalized and posted.
An adjusted trial balance proves the equality of the total debit balances and the total credit
balances in the ledger after all adjustments are made.
Self Study Quiz, Question 11
The trial balance shows Supplies $0 and Supplies Expense $1,500. If $800 of supplies are on hand at the end of the period, the adjusting entry is:
Debit Supplies Expense $700 and credit Supplies $700.
Debit Supplies $800 and credit Supplies Expense $800.
Debit Supplies Expense $800 and credit Supplies $800.
Debit Supplies $700 and credit Supplies Expense $700.
Copyright © 2000-2008 by John Wiley & Sons, Inc. or related companies. All rights reserved.