FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Accrual Accounting

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Short Answer

Review LaterAdd Note

Review Later

A ____________________ results when cash is paid before the related amount is reported on the income statement.

Correct Answer

verified

Show Answer

Question 2

Short Answer

Review LaterAdd Note

Review Later

From the list of accounts, determine whether the account is a temporary or permanent account. (Choices may be used more than once.) a.temporary account b.permanent account -Rent Revenue

Correct Answer

verified

A

Question 3

Short Answer

Review LaterAdd Note

A(n)____________________ revenue results when cash is received before it is earned and reported on the income statement.

What effect does "recognizing accrued Interest Revenue at the end of the accounting period" have on the accounting equation?

The university satellite office operates five days per week with a daily payroll of $5,000. Employees are paid every Saturday for the workweek just completed (Monday through Friday) . The last day of the month is Wednesday, October 31. What is the effect of the correct adjustment at October 31?

An ____________________ revenue must be recorded when revenue is earned in advance of receiving cash.

Match the most probable matching method to the costs listed. (Choices may be used more than once.) a.Directly match a specific revenue b.Indirectly match with the period during which it will provide revenue c.Not recognized in this period -Cost of two-year lease

What is the revenue recognition principle?

The preparation of _______________ is necessary to get the account balances properly stated and up to date.

-Refer to Cabana Club. Identify three specific expenses that might be accrued as a result of adjusting journal entries. Show what these entries would look like in journal format. Ignore amounts.

A law firm purchased supplies at a cost of $20,000 during 2013. At January 1, 2013, the beginning balance in the supplies account was $1,300. For 2013, supplies expense was $11,200. How much "Supplies" are on hand as of December 31, 2013?

Every adjustment involves at least one income statement and one balance sheet account.

Select the correct revenue recognition principle for each of the following. (Choices may be used more than once.) a.Recognize revenue over the passage of time. b.Recognize revenue when the customer takes possession of the product. c.Recognize revenue when cash is collected. d.Recognize revenue when service is performed. -Prepaid Subscriptions

Failure to record amounts earned for services provided to customers but not yet paid results in which of the following?

A calendar year company paid $24,000 on October 1, 2012 to purchase two years of insurance coverage for its retail shop. The prepayment was initially recorded as an asset.

Refer to C2IT Corporation. Answer the following: Required:

The financial statements are prepared after

From the list of accounts, determine whether the account is a temporary or permanent account. (Choices may be used more than once.) a.temporary account b.permanent account -Salaries Payable

The accounting records of Cary's Magic Shows reflect the following account balances at January 1, 2013: During 2013, the following transactions occurred: Required:

At the end of 2013, the unadjusted accounting records contain the following selected accounts and balances: