Question 1

On November 1,2010 Clyde Corp recieved $6,000 for six months rent in advance.What is the appropriate adjusting entry for December 31,2010?

Accepted Answer

A)  No adjustment needed because no cash paid.
B)  Unearned Rent $4,000Rent Expense $4,000
C)  Unearned Rent $2,000Rent Income $2,000
D)  Cash $2,000Rent Income $2,000E) A) and B)
F) C) and D)

Question 2

Which of the following could not be an adjusting entry?

Accepted Answer

A)  An increase in an expense and a decrease in an asset
B)  A decrease in a liability and an increase in a revenue
C)  A decrease in a asset and a decrease in a liability
D)  An increase in an expense and an increase in a liabilityE) A) and D)
F) None of the above

Question 3

Which of the following is not a part of the formal process of recording accounting events?

Accepted Answer

A)  general journal
B)  general ledger
C)  T-Accounts
D)  All of the above are part of the formal process of recording accounting events.E) None of the above
F) A) and D)

Question 4

Match between columns
                        Premises: An adjusting entry that occurs when expenses are incurred in one accounting period and payment is made in a later period.
An adjusting entry that recognizes when a revenue is earned but the payment to the firms will occur in a subsequent accounting period.
An entry made to transfer the balance of temporary accounts to retained earnings and determine net income or loss for a time period.
An adjusting entry that occurs when a company uses previously purchased assets in an attempt to generate revenue in future periods.
An adjusting entry that occurs when a company has been paid in advance for services to be performed in a future period.
An internal entry made to bring up to date the accounts for internal events prior to preparing financial statements.
An organizational scheme used to classify accounts as assets, liabilities, or owners' equity.
An event that management wants to plan and evaluate.

Accepted Answer

The Answer of Business event and Revenue deferral and Closing is...

Question 5

The accounts in the ledger are listed in what type of order?

Accepted Answer

A)  In the order they appear on the financial statements
B)  Alphabetical
C)  Size of the Account
D)  RandomE) A) and B)
F) B) and C)

Question 6

Which of the following is not a characteristic of an accounting event?

Accepted Answer

A)  Must be the result of a management decision.
B)  Must be specific to the entity for which records are being kept.
C)  Must be measurable in monetary term.
D)  Must impact the entity's assets,liabilities,and/or owners' equity.E) C) and D)
F) B) and C)

Question 7

All of the following accounts are increased by credits except:

Accepted Answer

A)  liabilities
B)  revenues
C)  assets
D)  contributed capital accountsE) All of the above
F) None of the above

Question 8

The following journal entry affected the accounting equation by:

Accepted Answer

A)  increasing assets and increasing liabilities
B)  decreasing assets and increasing owners' equity
C)  increasing liabilities and decreasing owners' equity
D)  increasing assets and increasing owners' equityE) A) and B)
F) A) and C)

Question 9

The adjusting entry to record depreciation of a building would be:

Accepted Answer

A)    
B)    
C)    
D)   E) A) and B)
F) A) and C)

Question 10

The adjusting entry to accrue interest earned would include a:

Accepted Answer

A)  credit to interest payable
B)  debit to interest receivable
C)  debit to cash
D)  credit to interest expenseE) B) and C)
F) None of the above

Question 11

All of the following are categories of adjusting entries except:

Accepted Answer

A)  accruals
B)  deferrals
C)  estimated allocations
D)  estimated paymentsE) C) and D)
F) A) and D)

Question 12

Valhalla Company sold goods on account to a customer for $75,000.The goods cost Valhalla $60,000.How should Valhalla report this transaction?

Accepted Answer

A)  Revenue of $75,000; expense $60,000
B)  Revenue,$75,000.
C)  Revenue and operating cash inflows,$15,000.
D)  Revenue,$15,000.E) B) and C)
F) A) and B)

Question 13

Which of the following events results in a revenue event?

Accepted Answer

A)  A customer pays for services to be provided over the next four months.
B)  A customer pays for merchandise previously purchased on account.
C)  A customer purchases merchandise on open account
D)  A bank loan is obtainedE) B) and C)
F) A) and D)

Question 14

The entry to record the full payment of the premium on a two-year insurance policy would include a:

Accepted Answer

A)  debit to insurance expense
B)  debit to prepaid insurance
C)  credit to accounts receivable
D)  credit to accounts payableE) A) and C)
F) B) and C)

Question 15

A record of all accounts,showing account activity and cumulative balances is maintained in the:

Accepted Answer

A)  general journal
B)  trial balance
C)  general ledger
D)  financial statementsE) B) and D)
F) A) and D)

Question 16

For each of the following transactions indicate its impact ( + or - )on the accounting equation.

Accepted Answer

The answer of For each of the following transactions indicate...

Question 17

On which financial statement would salaries expense appear?

Accepted Answer

A)  statement of stockholders' equity
B)  statement of cash flows
C)  income statement
D)  balance sheetE) A) and B)
F) A) and C)

Question 18

A firm billed a customer for services but did not collect cash.What is the effect of this transaction?

Accepted Answer

A)  Increases assets,increases revenues
B)  Increases assets,decreases assets
C)  Decreases assets,increases expenses
D)  Decreases assets,decreases liabilitiesE) B) and C)
F) A) and D)

Question 19

Dividends are listed on the:

Accepted Answer

A)  balance sheet
B)  income statement
C)  statement of financial position
D)  statement of retained earningsE) A) and B)
F) A) and C)

Question 20

Which of the following accounts would normally have a credit balance?

Accepted Answer

A)  Accounts Receivable
B)  Retained Earnings
C)  Inventory
D)  Depreciation ExpenseE) A) and C)
F) B) and C)

Exam 7: Accounting Information Systems

The adjusting entry to accrue interest earned would include a:

Correct Answer
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The following journal entry affected the accounting equation by:

Correct Answer
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Which of the following is not a characteristic of an accounting event?

Correct Answer
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Match the following terms with the descriptions below.

Which of the following is not a part of the formal process of recording accounting events?

Correct Answer
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Which of the following events results in a revenue event?

Correct Answer
verified

On which financial statement would salaries expense appear?

Correct Answer
verified

The entry to record the full payment of the premium on a two-year insurance policy would include a:

Correct Answer
verified

On November 1,2010 Clyde Corp recieved $6,000 for six months rent in advance.What is the appropriate adjusting entry for December 31,2010?

Correct Answer
verified

The adjusting entry to record depreciation of a building would be:

Correct Answer
verified

Valhalla Company sold goods on account to a customer for $75,000.The goods cost Valhalla $60,000.How should Valhalla report this transaction?

Correct Answer
verified

A firm billed a customer for services but did not collect cash.What is the effect of this transaction?

Correct Answer
verified

Which of the following could not be an adjusting entry?

Correct Answer
verified

Dividends are listed on the:

Correct Answer
verified

All of the following are categories of adjusting entries except:

Correct Answer
verified

Which of the following accounts would normally have a credit balance?

Correct Answer
verified

The accounts in the ledger are listed in what type of order?

Correct Answer
verified

All of the following accounts are increased by credits except:

Correct Answer
verified

For each of the following transactions indicate its impact ( + or - )on the accounting equation.

Correct Answer
verified

A record of all accounts,showing account activity and cumulative balances is maintained in the:

Correct Answer
verified

Exam 7: Accounting Information Systems

The adjusting entry to accrue interest earned would include a:

Correct AnswerverifiedShow Answer

The following journal entry affected the accounting equation by:

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of an accounting event?

Correct AnswerverifiedShow Answer

Match the following terms with the descriptions below.

Which of the following is not a part of the formal process of recording accounting events?

Correct AnswerverifiedShow Answer

Which of the following events results in a revenue event?

Correct AnswerverifiedShow Answer

On which financial statement would salaries expense appear?

Correct AnswerverifiedShow Answer

The entry to record the full payment of the premium on a two-year insurance policy would include a:

Correct AnswerverifiedShow Answer

On November 1,2010 Clyde Corp recieved $6,000 for six months rent in advance.What is the appropriate adjusting entry for December 31,2010?

Correct AnswerverifiedShow Answer

The adjusting entry to record depreciation of a building would be:

Correct AnswerverifiedShow Answer

Valhalla Company sold goods on account to a customer for $75,000.The goods cost Valhalla $60,000.How should Valhalla report this transaction?

Correct AnswerverifiedShow Answer

A firm billed a customer for services but did not collect cash.What is the effect of this transaction?

Correct AnswerverifiedShow Answer

Which of the following could not be an adjusting entry?

Correct AnswerverifiedShow Answer

Dividends are listed on the:

Correct AnswerverifiedShow Answer

All of the following are categories of adjusting entries except:

Correct AnswerverifiedShow Answer

Which of the following accounts would normally have a credit balance?

Correct AnswerverifiedShow Answer

The accounts in the ledger are listed in what type of order?

Correct AnswerverifiedShow Answer

All of the following accounts are increased by credits except:

Correct AnswerverifiedShow Answer

For each of the following transactions indicate its impact ( + or - )on the accounting equation.

Correct AnswerverifiedShow Answer

A record of all accounts,showing account activity and cumulative balances is maintained in the:

Correct AnswerverifiedShow Answer

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