Question<\/p>\n
Question 1. Question : Depreciation Expense and Accumulated Depreciation are classified, respectively, as<\/p>\n
expense and contra asset<\/p>\n
asset and contra liability<\/p>\n
revenue and asset<\/p>\n
contra asset and expense<\/p>\n
Question 2. Question : Which type(s) of adjustments are the financial statements affected by?<\/p>\n
Deferrals<\/p>\n
Accruals<\/p>\n
Both deferrals and accruals<\/p>\n
Neither deferrals nor accruals<\/p>\n
Question 3. Question : Accumulated depreciation is __________ to get the carrying value.<\/p>\n
added to equipment<\/p>\n
subtracted from equipment<\/p>\n
added to accounts payable<\/p>\n
subtracted from accounts payable<\/p>\n
Question 4. Question : The accounting equation is the basis for analyzing, summarizing, and recording transactions in accounting. The accounting equation is:<\/p>\n
Assets =Liabilities<\/p>\n
Assets = Liabilities + Stockholders Equity<\/p>\n
Liabilities = Assets + Stockholders Equity<\/p>\n
Stockholders Equity = Liabilities + Assets<\/p>\n
Question 5. Question : Accrual accounting records revenue when:<\/p>\n
Earned<\/p>\n
Cash is received<\/p>\n
Products are completed<\/p>\n
Salaries are paid<\/p>\n
Question 6. Question : On the balance sheet, Accrued expenses are ordinarily reported as:<\/p>\n
Fixed assets<\/p>\n
Prepaid expenses<\/p>\n
Assets<\/p>\n
Liabilities<\/p>\n
Question 7. Question : What are the four timing differences between recognizing revenues and expenses between accrual basis and cash basis accounting?<\/p>\n
Accrued revenue, accrued expenses, deferred revenue, deferred expenses<\/p>\n
Cash, revenue, expenses and liabilities<\/p>\n
Accounts receivable, accounts payable, long term liabilities, intangible assets<\/p>\n
Revenue, expenses, assets, retained earnings<\/p>\n
Question 8. Question : When cash is received in payment of an account receivable, which section of the Statement of Cash Flows is affected?<\/p>\n
Cash Flow from Operating Activities<\/p>\n
Cash Flow from Investing Activities<\/p>\n
Cash Flow from Financing Activities<\/p>\n
There is no effect on the Statement of Cash Flows.<\/p>\n
Points Received: 0 of 2<\/p>\n
Question 9. Question : After recording transactions for the accounting period, which financial statement does a company prepares statement first?<\/p>\n
Income statement<\/p>\n
Balance sheet<\/p>\n
Retained earnings statement<\/p>\n
Statement of cash flows<\/p>\n
Question 10. Question : X&M Co. provided services of $2,000,000 to clients on account. How does this transaction affect A&M’s accounts?<\/p>\n
Increase accounts receivable and cash by $2,000,000 each<\/p>\n
Increase accounts receivable and unearned revenues by $2,000,000 each<\/p>\n
Increase cash and decrease accounts receivable by $2,000,000 each<\/p>\n
Increase accounts receivable and revenues by $2,000,000 each<\/p>\n
Question 11. Question : Cash receipts from interest and dividends are classified as<\/p>\n
investing activities<\/p>\n
operating activities<\/p>\n
either financing or investing activities<\/p>\n
financing activities<\/p>\n
Question 12. Question : ___________ is an example of a deferred expense.<\/p>\n
Unearned revenue<\/p>\n
Accounts payable<\/p>\n
Prepaid advertising<\/p>\n
Accounts receivable<\/p>\n
Question 13. Question : Using accrual accounting, expenses are recorded and reported only<\/p>\n
When they are incurred and paid at the same time<\/p>\n
When they are incurred, whether or not cash is paid<\/p>\n
If they are paid before they are incurred<\/p>\n
If they are paid after they are incurred<\/p>\n
Question 14. Question : Which of the following is an example of a deferred expense?<\/p>\n
Prepaid advertising<\/p>\n
Unearned revenue<\/p>\n
Accounts payable<\/p>\n
Accounts receivable<\/p>\n
Question 15. Question : Which transaction would be recorded in a cash basis system of accounting?<\/p>\n
Purchase of equipment on credit<\/p>\n
Purchase of supplies on credit<\/p>\n
Sale of goods on credit<\/p>\n
Sale of goods for cash<\/p>\n
Question 16. Question : Accrued revenues would appear on the balance sheet as<\/p>\n
assets<\/p>\n
liabilities<\/p>\n
stockholders’ equity<\/p>\n
prepaid expenses<\/p>\n
Question 17. Question : Using accrual accounting, expenses are recorded and reported only when they are incurred, whether or not cash is paid, under the cash basis expenses are recorded:<\/p>\n
When they are incurred and paid at the same time<\/p>\n
If they are paid before they are incurred<\/p>\n
If they are paid after they are incurred<\/p>\n
When they are paid<\/p>\n
Question 18. Question : When preparing an adjustment under accrual accounting, what would be the proper amount of the adjusting entry if the end of the period balance in the supply account is $4,000 and the amount of supplies on hand is $1650?<\/p>\n
3,350<\/p>\n
2,350<\/p>\n
3,050<\/p>\n
5,650<\/p>\n
Points Received: 0 of 2<\/p>\n
Question 19. Question : __________ is\/are created when a revenue or expense has NOT been recorded by the end of the accounting period.<\/p>\n
Prepaid advertising<\/p>\n
Premiums received in advance<\/p>\n
Unearned revenue<\/p>\n
Accruals<\/p>\n
Question 20. Question : If prepaid insurance expires over time, this asset account becomes a (n)<\/p>\n
liability<\/p>\n
another asset<\/p>\n
revenue<\/p>\n
expense<\/p>\n","protected":false},"excerpt":{"rendered":"
Question Question 1. Question : Depreciation Expense and Accumulated Depreciation are classified, respectively, as expense and contra asset asset and contra liability revenue and asset contra asset and expense Question 2. Question : Which type(s) of adjustments are the financial Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-68123","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/68123","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=68123"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/68123\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=68123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=68123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=68123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}