美国会计Chapter 3 Practice Materials

Chapter 3The Adjusting ProcessMULTIPLE CHOICE1.The revenue recognition concepta.is in not in conflict with the cash method of accountingb.determines when revenue is credited to a revenue accountc.states that revenue is not recorded until the cash is receivedd.controls all revenue reporting for the cash basis of accountingANS:BDIF:ModerateOBJ:03-012.The matching concepta.addresses the relationship between the journal and the balance sheetb.determines whether the normal balance of an account is a debit or creditc.requires that the dollar amount of debits equal the dollar amount of credits on a trial balanced.determines that expenses related to revenue be reported at the same time the revenue is reportedANS:DDIF:ModerateOBJ:03-013.Using accrual accounting, revenue is recorded and reported onlya.when cash is received without regard to when the services are renderedb.when the services are rendered without regard to when cash is receivedc.when cash is received at the time services are renderedd.if cash is received after the services are renderedANS:BDIF:ModerateOBJ:03-014.Using accrual accounting, expenses are recorded and reported onlya.when they are incurred, whether or not cash is paidb.when they are incurred and paid at the same timec.if they are paid before they are incurredd.if they are paid after they are incurredANS:ADIF:ModerateOBJ:03-015.One of the accounting concepts upon which deferrals and accruals are based isa.matchingb.costc.price-level adjustmentd.conservatismANS:ADIF:ModerateOBJ:03-016.If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account, which of the following describes the effect of the credit portion of the entry?a.decreases the balance of an owners equity accountb.increases the balance of an liability accountc.increases the balance of an asset accountd.decreases the balance of an expense accountANS:BDIF:DifficultOBJ:03-017.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?a.increases the balance of a contra asset accountb.increases the balance of an asset accountc.decreases the balance of an owners equity accountd.increases the balance of an expense accountANS:DDIF:DifficultOBJ:03-018.The primary difference between deferred and accrued expenses is that deferred expenses havea.been incurred and accrued expenses have notb.not been incurred and accrued expenses have been incurredc.been recorded and accrued expenses have not been incurredd.not been recorded and accrued expenses have been incurredANS:BDIF:DifficultOBJ:03-019.Prior to the adjusting process, accrued expenses havea.not yet been incurred, paid, or recordedb.been incurred, not paid, but have been recordedc.been incurred, not paid, and not recordedd.been paid but have not yet been incurredANS:CDIF:DifficultOBJ:03-0110.Prior to the adjusting process, accrued revenue hasa.been earned and cash receivedb.been earned and not recorded as revenuec.not been earned but recorded as revenued.not been recorded as revenue but cash has been receivedANS:BDIF:DifficultOBJ:03-0111.Deferred expenses havea.not yet been recorded as expenses or paidb.been recorded as expenses and paidc.been incurred and paidd.not yet been recorded as expensesANS:DDIF:DifficultOBJ:03-0112.Deferred revenue is revenue that isa.earned and the cash has been receivedb.earned but the cash has not been receivedc.not earned and the cash has not been receivedd.not earned but the cash has been receivedANS:DDIF:DifficultOBJ:03-0113.Adjusting entries area.the same as correcting entriesb.needed to bring accounts up to date and match revenue and expensec.optional under generally accepted accounting principlesd.rarely needed in large companiesANS:BDIF:ModerateOBJ:03-0114.Adjusting entries affect at least onea.income statement account and one balance sheet accountb.revenue and the drawing accountc.asset and one owners equity accountd.revenue and one capital accountANS:ADIF:ModerateOBJ:03-0115.The general term employed to indicate an expense that has not been paid and has not yet been recognized in the accounts by a routine entry isa.capitalb.deferralc.accruald.inventoryANS:CDIF:EasyOBJ:03-0116.Which of the following is not a characteristic of accrual basis of accounting?a.Revenues and expenses are reported in the period in which cash is received or paidb.Revenues are reported in the income statement in the period in which they are earnedc.Supports the matching conceptd.All are correct.ANS:ADIF:DifficultOBJ:03-0117.Generally accepted accounting principles requires that companies use the _ of accounting.a.cash basisb.deferral basisc.accrual basisd.account basisANS:CDIF:EasyOBJ:03-0118.Which of the following supports the accrual basis of accounting?a.revenue recognition conceptb.cash conceptc.matching conceptd.revenue recognition and matching conceptsANS:DDIF:ModerateOBJ:03-0119.The cash basis of accounting records revenues and expenses when the cash is exchanged while the accrual basis of accountinga.records revenues when they are earned and expenses when they are paidb.records revenues and expenses when they are incurred.c.records revenues when cash is received and expenses when they are incurred.d.records revenues and expenses when the company needs to apply for a loan.ANS:BDIF:ModerateOBJ:03-0120.By matching revenues and expenses in the same period in which they income or loss will always be income or loss will always be income or loss will be properly reported on the income income or loss will not be determined. ANS:CDIF:EasyOBJ:03-0121.All adjusting entries always involvea.only income statement accounts.b.only balance sheet accounts.c.the cash account.d.at least one income statement account and one balance sheet account.ANS:DDIF:ModerateOBJ:03-0122.Prepaid expenses are eventually expected toa.become expenses when their future economic value expires.b.become revenues when services are performed.c.become expenses in the period when they are paid.d.become revenues when the liability is no longer owed.ANS:ADIF:ModerateOBJ:03-0123.Which of the following is considered to be unearned revenue?a.Concert tickets sold for tonights performance.b.Concert tickets sold yesterday on credit.c.Concert tickets that were not sold for the current performance.d.Concert tickets sold for next months performance.ANS:DDIF:DifficultOBJ:03-0124.Which of the following is an example of accrued revenue?a.Swimming pool cleaning that has been for three months in advance.b.Swimming pool cleaning that has been provided but has not been billed or paid.c.An agreement has been signed for swimming pool cleaning for the next three months.d.Swimming pool cleaning that has been provided and paid on the same day.ANS:BDIF:ModerateOBJ:03-0125.Which of the following is considered to be an accrued expense?a.A computer technician has installed the latest software updates and was paid on the same day.b.A computer technician has been paid in advance to install software updates as they become available.c.A computer technician has just signed an agreement with you regarding pricing for future work.d.A computer technician has installed the latest software updates, but you have not received their invoice for payment.ANS:DDIF:DifficultOBJ:03-0126.Which account would normally not require an adjusting entry?a.Wages Expenseb.Accounts Receivablec.Accumulated Depreciationd.Smith, CapitalANS:DDIF:DifficultOBJ:03-0227.Which one of the accounts below would likely be included in an accrual adjusting entry?a.Insurance Expenseb.Prepaid Rentc.Interest Expensed.Unearned RentANS:CDIF:ModerateOBJ:03-0228.Which one of the following accounts below would likely be included in a deferral adjusting entry? a.Interest Revenueb.Unearned Revenuec.Salaries Payabled.Accounts ReceivableANS:BDIF:ModerateOBJ:03-0229.The balance in the prepaid rent account before adjustment at the end of the year is $15,000, which represents three months rent paid on December 1. The adjusting entry required on December 31 isa.debit Rent Expense, $5,000; credit Prepaid Rent, $5,000b.debit Prepaid Rent, $10,000; credit Rent Expense, $5,000c.debit Rent Expense, $10,000; credit Prepaid Rent, $5,000d.debit Prepaid Rent, $5,000; credit Rent Expense, $5,000ANS:ADIF:DifficultOBJ:03-0130.The balance in the office supplies account on June 1 was $5,200, supplies purchased during June were $2,500, and the supplies on hand at June 30 were $2,000. The amount to be used for the appropriate adjusting entry isa.$4,500b.$2,500c.$9,700d.$5,700ANS:DDIF:DifficultOBJ:03-0231.What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $15,500, and unexpired amounts per analysis of policies, $4,500?a.debit Insurance Expense, $4,500; credit Prepaid Insurance, $4,500b.debit Insurance Expense, $15,500; credit Prepaid Insurance, $15,500c.debit Prepaid Insurance, $11,500; credit Insurance Expense, $11,500d.debit Insurance Expense, $11,000; credit Prepaid Insurance, $11,000ANS:DDIF:DifficultOBJ:03-0232.The entry to adjust for the cost of supplies used during the accounting period isa.Supplies Expense, debit; Supplies, creditb.James Smith, Capital, debit; Supplies, creditc.Accounts Payable, debit; Supplies, creditd.Supplies, debit; credit James Smith, CapitalANS:ADIF:ModerateOBJ:03-0233.A business pays weekly salaries of $20,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Thursday isa.debit Salaries Payable, $16,000; credit Cash, $16,000b.debit Salary Expense, $16,000; credit Drawing, $16,000c.debit Salary Expense, $16,000; credit Salaries Payable, $16,000d.debit Drawing, $16,000; credit Cash, $16,000ANS:CDIF:DifficultOBJ:03-0234.The balance in the prepaid insurance account before adjustment at the end of the year is $10,000. If the additional data for the adjusting entry is (1) the amount of insurance expired during the year is $8,500, as compared to additional data stating (2) the amount of unexpired insurance applicable to a future period is $1,500, for the adjusting entry:a.the debit and credit amount for (1) would be the same as (2) but the accounts would be differentb.the accounts for (1) would be the same as the accounts for (2) but the amounts would be differentc.the accounts and amounts would be the same for both (1) and (2)d.there is not enough information given to determine the correct accounts and amountsANS:CDIF:DifficultOBJ:03-0235.The difference between the balance of a fixed asset account and the related accumulated depreciation account is termeda.historical costb.contra assetc.book valued.market valueANS:CDIF:EasyOBJ:03-0236.The adjusting entry to record the depreciation of equipment for the fiscal period isa.debit Depreciation Expense; credit Equipmentb.debit Depreciation Expense; credit Accumulated Depreciationc.debit Accumulated Depreciation; credit Depreciation Expensed.debit Equipment; credit Depreciation ExpenseANS:BDIF:ModerateOBJ:03-0237.As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process calleda.equipment allocationb.depreciationc.accumulationd.matchingANS:BDIF:EasyOBJ:03-0238.The entry to adjust the accounts for wages accrued at the end of the accounting period isa.Wages Payable, debit; Wages Income, creditb.Wages Income, debit; Wages Payable, creditc.Wages Payable, debit; Wages Expense, creditd.Wages Expense, debit; Wages Payable, creditANS:DDIF:ModerateOBJ:03-0239.The supplies account has a balance of $1,000 at the beginning of the year and was debited during the year for $2,800, representing the total of supplies purchased during the year. If $750 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year isa.$750b.$3,550c.$3,800d.$3,050ANS:DDIF:ModerateOBJ:03-0240.A company purchases a one-year insurance policy on June 1 for $840. The adjusting entry on December 31 isa.debit Insurance Expense, $350 and credit Prepaid Insurance, $350b.debit Insurance Expense, $280 and credit Prepaid Insurance, $280c.debit Insurance Expense, $490, and credit Prepaid Insurance, $ 490.d.debit Prepaid Insurance, $720, and credit Cash, $720ANS:CDIF:DifficultOBJ:03-0241.If the prepaid rent account before adjustment at the end of the month has a debit balance of $1,600, representing a payment made on the first day of the month, and if the monthly rent was $800, the amount of prepaid rent that would appear on the balance sheet at the end of the month, after adjustment, isa.$800b.$400c.$2,400d.$1,600ANS:ADIF:ModerateOBJ:03-0242.Depreciation Expense and Accumulated Depreciation are classified, respectively, asa.expense, contra assetb.asset, contra liabilityc.revenue, assetd.contra asset, expenseANS:ADIF:EasyOBJ:03-0243.The type of account and normal balance of Accumulated Depreciation isa.asset, creditb.asset, debitc.contra asset, creditd.contra asset, debitANS:CDIF:EasyOBJ:03-0244.The type of account and normal balance of Unearned Rent isa.revenue, creditb.expense, debitc.liability, creditd.liability, debitANS:CDIF:EasyOBJ:03-0245.Data for an adjusting entry described as accrued wages, $2,020 means to debita.Wages Expense and credit Wages Payableb.Wages Payable and credit Wages Expensec.Accounts Receivable and credit Wages Expensed.Drawing and credit Wages PayableANS:ADIF:ModerateOBJ:03-0246.Supplies are recorded as assets when purchased. Therefore, the credit to supplies in the adjusting entry is for the amount of suppliesa.that are in the ending balanceb.purchasedc.usedd.either used or remainingANS:CDIF:EasyOBJ:03-0247.If there is a balance in the prepaid rent account after adjusting entries are made, it represents a(n)a.deferralb.accrualc.revenued.liabilityANS:ADIF:ModerateOBJ:03-0248.If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n)a.deferralb.accrualc.drawingd.revenueANS:ADIF:EasyOBJ:03-0249.The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n)a.capitalb.assetc.contra assetd.liabilityANS:BDIF:EasyOBJ:03-0250.Which of the following is an example of a prepaid expense?a.Suppliesb.Accounts Receivablec.Unearned Subscriptionsd.Unearned FeesANS:ADIF:EasyOBJ:03-0251.The unexpired insurance at the end of the fiscal period representsa.an accrued assetb.an accrued liabilityc.an accrued expensed.a deferred expenseANS:DDIF:EasyOBJ:03-0252.Accrued revenues would appear on the balance sheet asa.assetsb.liabilitiesc.capitald.prepaid expensesANS:ADIF:EasyOBJ:03-0253.Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n)a.assetb.liabilityc.contra assetd.expenseANS:ADIF:EasyOBJ:03-0254.Unearned rent, representing rent for the next six months occupancy, would be reported on the landlords balance sheet as a(n)a.assetb.liabilityc.capital accountd.revenueANS:BDIF:EasyOBJ:03-0255.Accrued expenses are ordinarily reported on the balance sheet asa.assetsb.liabilitiesc.fixed assetsd.prepaid expensesANS:BDIF:EasyOBJ:03-0256.Fees receivable would appear on the balance sheet as a(n)a.assetb.liabilityc.fixed assetd.unearned revenueANS:ADIF:EasyOBJ:03-0257.The general term employed to indicate a delay of the recognition of an expense already paid or of a revenue already received isa.depreciationb.deferralc.accruald.inventoryANS:BDIF:EasyOBJ:03-0258.The adjusting entry for rent earned that is currently recorded in the unearned rent account isa.Unearned Rent, debit; Rent Revenue, creditb.Rent Revenue, debit; Unearned Rent, creditc.Unearned Rent, debit; Prepaid Rent, creditd.Rent Expense, debit; Unearned Rent, creditANS:ADIF:ModerateOBJ:03-0259.Which of the following pairs of accounts could not appear in the same adjusting entry