Assets are transferred from one corporation to another. c) The entry to declare a dividend distribution. 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. b) $113,620. Which type of probability (empirical, classical, subjective) is each of the following? Over the phone, a new customer thinks her dog is pregnant and asks the veterinary receptionist what the total fee will be for obstetric care. or in longer cases. c. net income or loss will be properly reported on the income statement Liability c. Equity d. Revenue e. Expense, Identify the type of account for the following: Land a. Which of the following is not considered a basic type of adjusting entry?A. a . Question 1 Which of the following are considered the original "chronic eight" conditions from the 2008 Risk Adjustment Data Technical Assistance for Medicare Advantage Organizations Participation Guide? b. purchased (b) An expensive private jet that can be purchased from a local vendor. Indicate which items will be erroneously stated, because of the error, on (A) the income statement for the year and (B) the balance sheet as of October 31. -Fees earned in March that had been collected in advance: $3,600. 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. [ If you would like to come in, I would be happy to talk over the details and help with a payment plan that suits your budget." - is the best response. b) Crediting Wage Expense for $640 and debiting Wages Payable for $640. c. Unearned Subscriptions b) An understatement of assets, net income, and owners' equity. B) The asset-liability approach is arguably superior to the revenue-expens, Which of the following are NOT included in a postclosing trial balance? b. debit Prepaid Rent, $24,000; credit Rent Expense, $8,000 Choose from the following terms: | Throughout time (manufacturing cycle) | Sunk Cost | Differential Costs | Residual Income | Payback Method | Proje, Which of the following accounting elements does the matching principle help to match? Revenues, Liabilities, Owners' Equity b. Briefly summarize the meaning of this term and how it relates to an entity's financial statements. The 6% rate is appropriate in this situation. a. D) Assets are transferred from one corporation to another. By writing-down a fixed asset's depreciable cost now, there is less depreciation expense to match against future revenues. = 2 1/4. [1001][1562], [1652][1001]\left[\begin{array}{rr}-1 & 6 \\ 5 & 2\end{array}\right]\left[\begin{array}{ll}1 & 0 \\ 0 & 1\end{array}\right] FromBalanceSheetsAccountsReceivableFromIncomeStatement:SalesDec. Increase in assets b. View the full answer a) Assets = Liabilities + Owner's Capital + Owner's Drawings - Revenue - Expenses b) Assets + Owner's Drawings + Expenses = Liabilities + Owner's Capital + Revenues c) Assets -, Which account types have a normal debit balance? Adjusting entries are necessary for the following items: d. revenues when the liability is no longer owed, Which of the following is considered to be unearned revenue? A) Deferred credits B) Constructive obligations C) Equitable obligations D) Contingent liabilities, Which of the following doesn't correctly describe a journal entry which debits depreciation expense and credits accumulated depreciation? (4) Depreciation of office equipment is based on an estimated useful life of five years. 1) On the adjusted trial balance, retained earnings is: 1) The purpose of adjusting entries is to: Which of the following may not be considered a "qualifying asset" under IAS 23? $13,011 (property, plant, equip - accumulated depreciation). a. debit Insurance Expense, $3,000; credit Prepaid Insurance, $3,000 Accumulated Depreciation. c) Midwood Consultants began working for a client on March 15; bills will be sent monthly beginning April 15. During the month, Farad sold 50 trucks at an average price of $9,000 each. 5. ra - A kzs nyelvvltozattal kapcsolatos, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Don Herrmann, J. David Spiceland, Wayne Thomas, Eric W. Noreen, Peter C. Brewer, Ray H Garrison. b. deferral basis d) An overstatement of net income and an understatement of assets. b) Whenever transactions affect the revenue or expenses of more than one accounting period. d . a. d. contra asset, expense, The type of account and normal balance of Prepaid Insurance is $550. The cash payment for accrued revenues occurs __________ the adjusting entry to record the accrued revenue. Basic type of adjusting entry includes recording entry to convert a liability to a revenue, to convert an asset to an expense, and in order to record accrued unpaid expenses. c) Revenue accounts and expense accounts should not appear on the adjusted trial balance. b. allocation of unearned revenue. b) Prepaid expenses represent assets. A debit to an asset account and a credit to an expense account. Purchased land for cash. Prior to the adjusting process, accrued expenses have, Prior to the adjusting process, accrued revenue has, Deferred revenue is revenue that is c. debit Accumulated Depreciation; credit Depreciation Expense. a. summarizes the changes in retained earnings for a specific period of time b. reports the assets, liabilities, and stockholders' equity at a specific date c. presents the revenues and expenses for a speci, What categories does commissions fall in: A. (1) A one-year bank loan of $720,000 at an annual interest rate of 12% had been obtained on December 1. b. No more trying to get the same "feel" from a piece of paper or feeler gauge. = 2 5/20 a. assets b. liabilities c. gains d. expenses, What type of account is prepaid expense? Are they quantitative or qualitative in nature? a. Increase an asset; increase revenue. Borders and boundaries The boundaries of adjustment disorder are not well defined in the current classifications. finding a different way to do something. A large corporation is one having $1 million or more taxable income during any of its 3 preceding tax years. A) exponential smoothing. C. Assets - Liabilities - Dividends, Identify the type of account for the following: Equipment a. c) Debiting Wage Expense for $4,480 and crediting Wages Payable for $4,480. An entry to convert an asset to an expense. Question 4 options: The company's monthly rent is $700. A) Assets and Expenses B) Liabilities and Dividends C) Revenues and Liabilities D) Owners' Equity and Dividends. A. a) A debit to Child Care Fees Receivable of $9,000. Tax payers subject to the limitation subtract the limitation amount in calculating AMTI. The United Shipping Co. borrowed $25,000 at 12% interest on March 1, 2018. c. an accrued expense (5) All fees totaling $19,800 were earned during the month for clients who had paid in advance. Liability, Asset b. Data gathered from parents, siblings and teachers indicated that siblings in ABA families experienced neither significant drawbacks nor benefits in terms of . Assets = liabilities + stockholders' equity c. Assets = liabilities d. Assets = liabilities + retained earnings, Which of the following is not a change in accounting estimate? Assets and liabilities C. Common Stock and liabilities D. Owner, Capital and assets, Which of the following statements is true concerning all types of tax-free corporate reorganizations? Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: In a recent balance sheet, Microsoft Corporation reported Property, Plant, and Equipment of $27,804 million and Accumulated Depreciation of $14,793 million. Stock is exchanged between the shareholders of at least two corporations. a. cash basis B) adaptive smoothing. An entry to convert an asset to a liability. d. debit Insurance Expense, $11,000; credit Prepaid Insurance, $11,000, The entry to adjust for the cost of supplies used during the accounting period is A: Accrued revenues are those which have been accrued but not yet paid. The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is c) $0 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? e. Increase an expense; d, Which basic element of financial statements arises from peripheral or incidental transactions? A) Asset b. d) Crediting Wage Expense for $4,480 and debiting Wages Payable for $4,480. 1) Which of the following is not considered a basic type of adjusting entry? Doing so: A. Violates professional standards. d) Net income for Perfect Painting for 2018 is overstated. Interest Revenue \end{array} (b) The entry to record the portion of fees received in advance, which have now been earned: $3,000. A_____is a collection problem that requires immediate action because this individual has a balance due and has moved without leaving a forwarding address. - Net income increases. C) c) Midwood Consultants began working for a client on March 15; bills will be sent monthly beginning April 15. Skip. (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. A. b) Daystar Company completes a job for a customer in May; payment will be received in June. b) $36,000. a) Assets a. historical cost Change in amortization period for an intangible asset. Increase an expense; increase a liability. Test Prep. a) Liabilities b) Assets c) Revenues d) Owner Equity. 1) On December 31, Louis Jeweler's made an adjusting entry to record $4,200 accrued interest payable on its mortgage. B) a) To record unrecorded expenses. Where are the highest populations in Europe? Supplies c. accumulation a) The entry to record depreciation. b) To apportion unearned revenue. The following table shows the undergraduate grading system used at McMaster University with the equivalent 4.0 scale. b) $4,000 is paid in January for equipment with a useful life of four years. a) Assets of Perfect Painting are overstated at December 31, 2018. 1) Which of the following situations does not require Empire Company to record an adjusting entry at the end of January? Which of the following is not a type of adjusting entry? b) Midwood Consultants made payment in January for office rent for the first three months of the year. Additional materials will not be considered or returned. = 15 * 3/20 The entry to record bad debts expense for the period. c) The entry to declare a dividend distribution. b. Unearned Revenue b. accounting income. b) Net income will be understated and total assets will be understated. Using accrual accounting, revenue is recorded and reported only, Using accrual accounting, expenses are recorded and reported only, The accounting principle upon which deferrals and accruals are based is. C. Assigning expenses to the periods in which they are incurred. d) Balance sheet items are presented before income statement items. a) Assets = Equities. The entry to record the collection of accounts receivable c. The entry to record the purchase of equipment d. The entry to record bad debts expense for the period. The entry to record revenue earned but not yet received c. The entry to record the earned portion of rent recei. b. debit Depreciation Expense; credit Accumulated Depreciation. a) The entry to record unpaid expenses.