Use the following account types to form the expanded accounting equation. a) On March 31, a major customer paid his bill for a consulting job completed in February. d) Justifies ignoring the matching principle or the realization principle in certain circumstances. Accumulated Depreciation. [1562][1001]. Why It Matters; 3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements; 3.2 Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions; 3.3 Define and Describe the Initial Steps in the Accounting Cycle; 3.4 Analyze Business Transactions Using the Accounting Equation and Show the Impact of Business . Liabilities and Stockholders' Equity C. Revenues and Expenses D. Liabilities and Expenses, The adjusting entry to record an accrued expense is: a. Debit Depreciation Expense $578 and credit Accumulated Depreciation $578. d) A debit to Fees Receivable of $9,000. (4) Depreciation of office equipment is based on an estimated useful life of five years. Statement of changes in owner equity C. Balance sheet 2. Change in amortization period for an intangible asset. b. a) The entry to record depreciation. NOCCCD will not sponsor any visa applications. a) In the period in which they are earned. Revenue c. Stockholders' equity d. Liability, Which of the following accounts will appear on the company's income statement? If Hot Bagel Co. estimates depreciation on an automobile to be $578 for the year, the company should make the following adjusting entry: Which one of the following is not considered a basic type of adjusting entry? If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry? \text{From Balance Sheets}&\textbf{Dec. 31, 2018}&\textbf{Dec. 31, 2017}\\[2pt] B) c. asset and one stockholders' equity account d. Building, equipmen, Which of the following is an appropriate representation of the accounting equation? The monthly rent is $6,000. c) $60,000. Current assets b. Adjusting journal entries are a feature of accrual accounting as a result of revenue recognition and matching principles. Which of the following basic elements of financial statements is more associated with the balance sheet than the income statement? d) Net income will be overstated and total assets will be overstated. Increase in assets and increase in net income. c) An asset. the amount expired. Assets, capital, and withdrawals. Asset b. c) Prepaid expenses become expenses only as goods or services are used up. e. None of these. 1) Omega Company adjusts its accounts at the end of each month. 1) Unearned revenue is: d. Cash, 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. a. historical cost d) In the period with the lower earnings. This answer has been confirmed as correct and helpful. c) Debiting Wage Expense for $4,480 and crediting Wages Payable for $4,480. Indicate which items will be erroneously stated, because of failure to correct the initial error, on (a) the income statement for the month of November and (b) the balance sheet as of November 30. a. income statement b. statement of changes in owner equity c. balance sheet, Which of the following groups of accounts have a normal debit balance? (5) Fees of $9,800 were earned during the month for clients who had paid in advance. 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, D) a) Are needed whenever revenue transactions affect more than one period. c) $38,000. 1) Recently, Bon Appetite Caf contracted and paid for a relatively expensive advertisement in Haute Cuisine magazine. c. correction of an error in the general journal. She has also heard that certain terms have special meanings in accounting relative to everyday use. B) Both revenues and assets will be overstated. a) Before financial statements and after a trial balance has been prepared. Application period 02-Mar-2023 to 17-Mar-2023. 21. Assets c. Stockholders' equity d. Expenses e. Liabilities, Which of the following current asset or current liability accounts is not included in the computation of cash flows from operating activities? The cost of insurance is considered an expense: Evenly over the term of the policy Adjusting entries are prepared: Change in accrued wa, Which one of the following types of liabilities is not currently recognized on balance sheets? c. accrual basis of accounting supports the matching concept Identify each of the following as either an asset, a liability, or equity: (a) Prepaid Rent, (b) Unearned Fees, (c) Building, (d ) Wages Payable, (e) Office Supplies. A. The adjusting entry to record interest that has accrued on a note payable to the bank will cause an immediate: (Assume accrual basis accounting.) Each book contained a certain number of coupons for video rentals. 1) Which of the following is not a purpose of adjusting entries? We also provide some thoughts concerning compliance and risk mitigation in this challenging environment. b) Accumulated depreciation should equal depreciation expense. Fiscal Technician I . a. a. 31,2018Dec. A) Whenever revenue is not received in cash. Wages Expense Which of the following frictional force is self adjusting? 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. (2) The company's pays all employees up-to-date each Friday. $400 DOC Chapter 05 Audit Evidence and Documentation - CPA Diary 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? 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. Which of the following is not considered an epidermal b. a computer technician has been paid in advance to install software updates as they become available determines when revenue is credited to a revenue account, states that the revenues and related expenses should be reported in the same period, Using accrual accounting, expenses are recorded and reported only, when they are incurred, whether or not cash is paid, The accounting principle upon which deferrals and accruals are based is. The adjusting entry on December 31 is (pdf) Introduction Congress is fast approaching the need to take action on the nation's statutory debt limit, often referred to as the debt ceiling. Acute myocardial infarction, diabetes, cerebral atrophy, chronic obstructive pulmonary disease, end-stage renal disease, homocysteinemia, rheumatoid arthritis, stroke B. Diabetes . Question 14 options: C. Liabilities that are assumed when cash is also, Multiple Choice 1. Economic Sanctions and Anti-Money Laundering Developments: 2022 Year in providing equipment, services or support. 58) The computer monitoring of tracking signals and self-adjustment is referred to as. The budget for the month was to sell 45 trucks at an average price of$9,500 each. Increase in liabilities and reduction in net income. $3,900 a. equipment allocation b) Net income will be understated and total assets will be understated. Liability c. Equity d. Revenue e. Expense, Which of the following entries causes an immediate decrease in assets and stockholders' equity? c. Underrecording depreciation expense. Solved Which of the following is not considered a basic type - Chegg d. Unearned Rent, Which of the following accounts would likely be included in a deferral adjusting entry? When recording this mortgage payment, the accountant should: On June 30, 2018, the Esquire Company sold some merchandise to a customer for $30,000\$ 30,000$30,000. b. contra asset Position Number: CM-157-2022 Department: Fiscal Services Job Category: Time (Percent Time): Term (months/year): Current Work Schedule (days, hours): Monday-Thursday, 7:30am-5:00pm/Friday, 7:30am-11:00am Salary Range: A-69 Salary: A-69Steps 1 - 6: $4,386 - $5,598 monthly Shift Differential: Shift differential eligibility based on the current collective bargaining agreement. Following the scary situation, the Blink-182 member chose to not fly again and traveled only by car, boat and train. d. debit Gym Memberships Expense; credit Unearned Gym Memberships, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus. d) Prepaid expenses are shown in a special section of the income statement. c) Results in financial statements that are less useful to decision makers because many details have been omitted. All rights reserved. Learn the definition of adjusting entries in accounting, and find examples. (3) On December 1, rent on the office building had been paid for three months. (b) Contracts negotiated under part 15 may be of any type or combination of types that will promote the Government's interest, except as restricted in this part (see 10 U.S.C. Sweat gland b. Hairc. 1) Gamma Company adjusts its accounts at the end of each month. Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or oth. An entry to accrue unpaid expenses B. Solved Which of the following would not be considered an - Chegg Debit Depreciation Expense $578 and credit Accumulated Depreciation $578. Part 16 - Types of Contracts | Acquisition.GOV 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. c. Prepaid expenses, land, and accounts receivable. Which of the following accounts would likely be included in an accrual adjusting entry? a) In April, Daystar Company received payment from a customer for services that are performed in May. For example: making changes to the workplace. The accrual of an electricity bill for electricity used but not yet paid b. b. theater tickets sold yesterday on credit for yesterday's performance This payment included interest charges of $6,300, $2,100 of which were applicable to the period from January 1 through January 10. d) A liability. Sketch the graph of D(v)D(v)D(v). a) Liabilities b) Assets c) Revenues d) Owner Equity. A change from expensing certain costs to capitalizing these costs du. D. Geologists. b. debit Insurance Expense, $14,000; credit Prepaid Insurance, $14,000 If the balance of supplies at the start of the month was $900 and at the end of the month you had $350 on hand, the adjustment for Supplies would be: $450. Explain. e. None of the above. \text{Accounts Receivable}&\text{\$\hspace{5pt}85,000}&\text{\$\hspace{5pt}105,000}\\[20pt] Which of the following accounts normally has a debit balance? Which of the following is not accomplished by an adjusting entry? -Rental income accrued during March, tenant to pay in April: $900. Weegy: A basic position in American foreign policy has been that America must defend its foreign interests related to Weegy: 15 ? Fair value adjustment-trading a. Asset b. 1) Which of the following situations does not require Empire Company to record an adjusting entry at the end of January? On January 31, Ramona's Nursery paid the interest owed on a note payable for January. d. the future value of cash flows. On a given Friday, the probability that Flight 277 to Chicago is on time is 23.7%. A: Accrued revenues are those which have been accrued but not yet paid. D. Paid $4,000 for o, Which of the following is not considered a type of long-lived asset? b. needed to bring accounts up to date and match revenue and expense Income statement B. Important Terms: Please Read Before Bidding! The Americans with Disabilities Act of 1990, a civil rights law, prohibits employers from discriminating against employees with disabilities. a. 1) An asset purchased on January 1, 2015 for $60,000 that has an estimated life of 10 years will have a book value on December 31, 2018 of: 1. Debit Depreciation Expense $578 and credit Automobile $578. A. a) $44,200. The monthly rent is $7,000. b) $231,900. Because collecting the adjustment data requires time, the adjusting entries are often. c. $6,800 Identify where the following item would be reported in the financial statements. 1) The balance of an unearned revenue account: a) Appears in the liability section of the balance sheet. (a) The entry to record depreciation: $3,000. This was the question investigated in the Journal of Experimental Social Psychology (Vol. Account adjustments, also known as adjusting entries, are entries that are made in the general journal at the end of an accounting period to bring account balances up-to-date. A. Which of the following groups are not considered a specialist by AICPA Professional Standards: A. Appraisers. Current liabilities c. Investments d. Long-term liabilities e. Property, plant, a. Employees earn a total of $12,800 per week. $3,500. The Web site's directory was searched for those with "average" American names (e.g., "John Smith," "Sara Jones"). b) Decrease by $9,800. changing someone's working arrangements. d. matched, Which of the following is not a characteristic of the accrual basis of accounting? 1) Gordy's Corp. has seven employees. Which one of the following is not considered a basic type of adjusting entry? = 15 * 3/20 B) Revenue. c. a computer technician has just signed an agreement with you regarding pricing for future work b) Liabilities b. allocation of unearned revenue. d. contra asset, expense, The type of account and normal balance of Prepaid Insurance is A) Capitalized means that an asset account is debited (increased) for the cost of an asset.B) Capitalized means that a liability account is credited (increased) for the cost of an asset.C) Capitalized mea, Entry to recognize depreciation expense incurred on equipment is recorded as: a. a. an accrued asset As a result of these two omissions: a. assets, liabilities, owner's equity b. assets, drawing, expenses c. assets, revenues, expenses d. assets, liabilities, revenues, Which of the following statements is true? a. b) $4,000 is paid in January for equipment with a useful life of four years. Decrease in liabilities and reduction in net income. Reasonable adjustments at work - Acas In previous chapter, we discussed the various factors that may influence P/E ratios. c) Not to be calculated unless the exact life of an asset can be determined. b) Net income will be understated and total assets will be understated. The monthly rent is $7,000. Indicate with a Yes or No whether or not each of the following accounts normally requires an adjusting entry: At the end of the current year, $23,570 of fees have been earned but have not been billed to clients. a. a. earned and the cash has been received Prepaid expenses. A GPA adjustment may occur under one of the following conditions: How to Calculate Your . 1) Adjusting entries: b) The entry to pay salaries. Increase an expense; increase a liability. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay amounting to $6,800. (b) An expensive private jet that can be purchased from a local vendor. b) As an asset on the balance sheet.