Chapter 03 – Adjustments: Accruals and Deferrals
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Page 41
DIFFICULTY:
Bloom’s: Remembering
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.03–03 – LO: 03–03
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.09 – Financial Statements
ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:31 PM
DATE MODIFIED:
10/16/2017 4:29 PM
102. Accrued expenses are ordinarily reported on the balance sheet as
a.
assets
b.
liabilities
c.
fixed assets
d.
prepaid expenses
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.03–02 – LO: 03–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.09 – Financial Statements
ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:31 PM
DATE MODIFIED:
10/16/2017 4:29 PM
103. Fees payable would appear on the balance sheet as a(n)
a.
asset
b.
liability
c.
fixed asset
d.
unearned revenue
ANSWER:
POINTS:
DIFFICULTY:
QUESTION TYPE:
HAS VARIABLES:
LEARNING OBJECTIVES:
ACCREDITING STANDARDS:
Chapter 03 – Adjustments: Accruals and Deferrals
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Page 43
d.
$36,000
ANSWER:
c
RATIONALE:
Amount of the adjusting entry = Beginning balance – Ending balance = $72,000 –
$18,000 = $54,000
POINTS:
1
DIFFICULTY:
Bloom’s: Applying
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
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
107. The following adjusting journal entry does not include an explanation. Select the best explanation for the entry.
Unearned Fees
7,500
Fees Earned
7,500
????????????????
a.
Record payment of fees earned.
b.
Record fees earned at the end of the month.
c.
Record fees that have not been earned at the end of the month.
d.
Record payment of fees to be earned.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
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
108. The following adjusting journal entry does not include an explanation. Select the best explanation for the entry.
Supplies Expense
730
Supplies
730
????????????????
a.
Record supplies used.
b.
Record purchase of supplies.
c.
Reduce supplies expense.
d.
Record sale of supplies.
Chapter 03 – Adjustments: Accruals and Deferrals
Copyright Cengage Learning. Powered by Cognero.
Page 44
ANSWER:
a
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
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
109. The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for
the entry.
Wages Expense
4,500
Wages Payable
4,500
????????????????
a.
Record payment of wages.
b.
Record wages paid last month.
c.
Record wages paid in advance.
d.
Record wages expense incurred and to be paid next month.
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
Bloom’s: Remembering
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.03–02 – LO: 03–02
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
110. What effect will this adjustment have on the accounting records?
Unearned Fees
6,375
Fees Earned
6,375
a.
increase net income
b.
increase revenues reported for the period
c.
decrease liabilities
d.
all of these are true
ANSWER:
d
POINTS:
1
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Page 47
115. The account type and normal balance of Prepaid Expense is
a.
revenue, credit
b.
expense, debit
c.
liability, credit
d.
asset, debit
ANSWER:
POINTS:
DIFFICULTY:
QUESTION TYPE:
HAS VARIABLES:
LEARNING OBJECTIVES:
ACCREDITING STANDARDS:
DATE CREATED:
DATE MODIFIED:
116. The account type and normal balance of Unearned Revenue is
a.
revenue, credit
b.
expense, debit
c.
liability, credit
d.
asset, debit
ANSWER:
c
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.03–03 – LO: 03–03
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 5:31 PM
DATE MODIFIED:
10/16/2017 4:29 PM
117. Which of the following is an example of an accrued expense?
a.
salary owed but not yet paid
b.
fees received but not yet earned
c.
supplies on hand
d.
a two-year premium paid on a fire insurance policy
ANSWER:
a
POINTS:
1
DIFFICULTY:
Challenging