121.
During the year, Cheng Company paid salaries of $24,000. In addition, $8,000 in salaries
has accrued by the end of the year but has not been paid. The year-end adjusting entry
would include which one of the following?
122.
At the beginning of December, Global Corporation had $2,000 in supplies on hand. During
the month, supplies purchased amounted to $3,000, but by the end of the month the
supplies balance was only $800. What is the appropriate month-end adjusting entry?
123.
Eve’s Apples opened for business on January 1, 2018, and paid for two insurance policies
effective that date. The liability policy was $36,000 for 18 months, and the crop damage
policy was $12,000 for a two-year term. What was the balance in Eve’s Prepaid Insurance
account as of December 31, 2018?
124.
A list of all accounts and their balances after updating account balances for adjusting
entries is referred to as:
125.
An adjusted trial balance:
126.
Consider the adjustment process at the end of the accounting period.
1. Record the adjusting entries in the journal.
2. Prepare an adjusted trial balance to check the equality of the debits and credits.
3. Determine the accounts requiring adjustment, using the unadjusted trial balance.
4. Post the adjusting entries to the general ledger.
Place the items in the proper order.
127.
The adjusted trial balance should be prepared ______ the financial statements are
prepared in order to prove the ______ of the debits and credits.
128.
Which of the following trial balances shows account balances that incorporate current
year deferrals and accruals?
129.
Which of the following is true about an income statement?
130.
Which of the following best describes the information reported in the income statement?
131.
The following table contains financial information for Trumpeter Inc. before closing
entries:
Cash
$12,000
Supplies
4,500
Prepaid Rent
2,000
Salary Expense
4,500
Equipment
65,000
Service Revenue
30,000
Miscellaneous Expenses
20,000
Dividends
3,000
Accounts Payable
5,000
Common Stock
68,000
Retained Earnings
8,000
What is Trumpeter’s net income?
132.
If a company
incorrectly
records a payment as an expense instead of an asset, how will
this error affect net income in the current period?
133.
If a company records cash received for services to be provided in the future with a debit to
Cash and a credit to Service Revenue, how will this error affect net income for the current
period?
134.
The statement of stockholders’ equity includes which of the following for the period?
135.
The statement of stockholders’ equity includes:
136.
In the statement of stockholders’ equity, Retained Earnings had a beginning balance of
$25,000. During the period, the company reports a net income of $10,000 and a dividend of
$4,000. The ending balance in the Retained Earnings account is:
137.
In the statement of stockholders’ equity, Retained Earnings had a beginning balance of
$60,000. During the period, the company reports a net loss of $10,000 and net cash
outflows of $15,000. The ending balance in the Retained Earnings account is:
138.
In the statement of stockholders’ equity, the balance of Retained Earnings increased by
$32,000. The company declared a dividend of $10,000 during the year. What was the net
income for the year?
139.
A classified balance sheet ______.
140.
Which financial statement provides information for a point in time only?
141.
Current assets include:
142.
With respect to current assets, liquidity refers to:
143.
The following financial information is from Shovels Construction Company:
Accounts Payable
$15,000
Buildings
80,000
Cash
10,500
Accounts Receivable
9,500
Sales Tax Payable
4,500
Retained Earnings
47,500
Supplies
40,000
Notes Payable (due in 18 months)
35,000
Interest Payable
3,000
Common Stock
35,000
What is the amount of current assets, assuming the accounts above reflect normal
activity?
144.
Consider the following items:
Land
Accounts Receivable
Notes Payable (due in three years)
Accounts Payable
Retained Earnings
Prepaid Rent
Deferred Revenue
Buildings
Notes Payable (due in six months)
Equipment
How many of the items listed above are generally long-term assets?
145.
Resources owned by the company that will provide a benefit for more than one year are
called:
146.
Long-term productive assets used in the normal course of business are typically classified
as:
147.
Patents, copyrights, franchises, and trademarks are examples of:
148.
A current liability is defined as:
149.
An advantage of a classified balance sheet is that it is easy to see:
150.
Which of the following current liabilities does not involve the future payment of cash?
151.
The Deferred Revenue account is shown in which statement?
152.
The following financial information is from Bronco Company. All debt is due within one
year unless stated otherwise.
Retained Earnings
$52,000
Supplies
37,000
Equipment
72,000
Accounts Receivable
8,600
Deferred Revenue
6,000
Accounts Payable
15,000
Common Stock
25,000
Notes Payable (due in 18 months)
35,000
Interest Payable
7,000
Cash
22,400
What is the amount of current liabilities?
153.
Which of the following are reported as stockholders’ equity in a classified balance sheet?
154.
The following table contains financial information for Trumpeter Inc. before closing
entries:
Cash
$12,000
Supplies
4,500
Prepaid Rent
2,000
Salaries Expense
4,500
Equipment
65,000
Service Revenue
30,000
Miscellaneous Expenses
20,000
Dividends
3,000
Accounts Payable
5,000
Common Stock
68,000
Retained Earnings
8,000
What is the amount of Trumpeter’s total assets?
155.
The following table contains financial information for Trumpeter’s Inc. before closing
entries:
Cash
$12,000
Supplies
4,500
Prepaid Rent
2,000
Salaries Expense
4,500
Equipment
65,000
Service Revenue
30,000
Miscellaneous Expense
20,000
Dividends
3,000
Accounts Payable
5,000
Common Stock
68,000
Retained Earnings
8,000
What is the amount of Trumpeter’s total liabilities?