Chapter 03 – Adjustments: Accruals and Deferrals
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Page 21
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.03–01 – LO: 03–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.04 – Cash vs. Accrual
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:31 PM
DATE MODIFIED:
10/16/2017 4:29 PM
55. 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 a stockholders’ equity account
b.
increases the balance of a liability account
c.
increases the balance of an asset account
d.
decreases the balance of an expense account
ANSWER:
b
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.03–01 – LO: 03–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.07 – Adjusting Entries
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:31 PM
DATE MODIFIED:
10/16/2017 4:29 PM
56. 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 account
b.
increases the balance of an asset account
c.
decreases the balance of a stockholders’ equity account
d.
increases the balance of an expense account
ANSWER:
d
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.03–01 – LO: 03–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.07 – Adjusting Entries
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:31 PM
DATE MODIFIED:
10/16/2017 4:29 PM
Copyright Cengage Learning. Powered by Cognero.
Page 22
57. Prior to the adjusting process, accrued expenses have
a.
not yet been incurred, paid, or recorded
b.
been incurred, not paid, but have been recorded
c.
been incurred, not paid, and not recorded
d.
been paid but have not yet been incurred
ANSWER:
c
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.03–01 – LO: 03–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.07 – Adjusting Entries
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:31 PM
DATE MODIFIED:
10/16/2017 4:29 PM
58. Prior to the adjusting process, accrued revenue has
a.
been earned and cash received
b.
been earned and not recorded as revenue
c.
not been earned but recorded as revenue
d.
not been recorded as revenue but cash has been received
ANSWER:
b
POINTS:
1
DIFFICULTY:
Challenging
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.03–01 – LO: 03–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.07 – Adjusting Entries
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:31 PM
DATE MODIFIED:
10/16/2017 4:29 PM
59. Prepaid expenses have
a.
not yet been recorded as expenses but have been paid
b.
been recorded as expenses and paid
c.
been incurred and paid
d.
not yet been recorded as expenses or paid
ANSWER:
a
POINTS:
1
DIFFICULTY:
Challenging
Chapter 03 – Adjustments: Accruals and Deferrals
Copyright Cengage Learning. Powered by Cognero.
Page 29
b.
Unearned Revenue
c.
Salaries Payable
d.
Accounts Receivable
ANSWER:
b
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.03–01 – LO: 03–01
FNMN.WAJO.19.03–03 – LO: 03–03
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.07 – Adjusting Entries
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:31 PM
DATE MODIFIED:
10/16/2017 4:29 PM
75. If there is a balance in the prepaid rent account after adjusting entries are made, it represents a(n)
a.
deferral
b.
accrual
c.
revenue
d.
liability
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.03–01 – LO: 03–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.04 – Cash vs. Accrual
ACCT.ACBSP.APC.07 – Adjusting Entries
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:31 PM
DATE MODIFIED:
10/16/2017 4:29 PM
76. If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n)
a.
deferral
b.
accrual
c.
dividend
d.
revenue
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
