a) Realization principle Write offs. Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Unearned Income. D) Following the counterculture movement of the 1960s, misleading marketing campaigns promoting "alternative medicine" as being an effective "alternative" to biomedicine, and with changing social attitudes about not using chemicals, challenging the establishment and authority of any kind, sensitivity to giving equal measure to values and beliefs . Expenses have normal debit balances. a. asset b. liability c. equity, Which of the following uncorrected errors would result in both assets and net income being overstated? b. d) Assets = Liabilities + Paid-in Capital + Reven. a) Liabilities b) Assets c) Revenues d) Owner Equity. a. deferral Liability, Asset b. The balance in the Office Equipment account is $9,360; no change has occurred in the account during the year. To see how XOM's P/E ratio stacks up to its peers, refer to Google Finance's Related Companies screen. Test Prep. When recording an adjusting entry for a prepaid expense. A. This answer has been confirmed as correct and helpful. 1) Depreciation expense is: a) An exact calculation prepared by an appraiser. Assets + Dividends + Expenses= Liabilities + Common Stock + Retained Earnings + Revenues. The first payment is due on July 15. Which of the assets does not match with the correct contra account? ($4,800 / 12 = $400 * 1 / 2 = $200). The central theme of 2022 was the U.S. government's deploying of its sanctions, AML . Debit Interest Payable $250. b. debit Depreciation Expense; credit Accumulated Depreciation. a. b. a . A) The variable being predicted is the Y variable. (More) = 2 5/20 1) The balance of an unearned revenue account: a) Appears in the liability section of the balance sheet. theater tickets sold for next month's performance. Ramona's Nursery purchased playground equipment on January 1 with an estimated useful life of six years. Question 14 options: a. income statement account and one balance sheet account c) The entry to record revenue earned but not yet received. 4. c) Assets = Liabilities + Paid-in Capital + Retained Earnings. Identify where the following item would be reported in the financial statements. Accounts Receivable; Bad Debt Expense. a) Only if a manual accounting system is used in both periods. Credit Interest Payable $2,500 1. '34_ Which of the following is not considered a basic type of adjusting Which of the following is NOT one of the three ways medical services can be achieved? c) Debiting Wage Expense for $4,480 and crediting Wages Payable for $4,480. -Rental income accrued during March, tenant to pay in April: $900. b. d) $117,000. a) To record unrecorded expenses. The cash account will always be affected by adjusting journal entries. A) Marketable Securities B) Equipment C) Prepaid Expenses D) Interest Receivable, Which of the following is a correct statement regarding the use of the modified approach for accounting for eligible infrastructure assets? After adjusting entries are made for the items listed above, Russell Company's net income would be: 1) Which of the following statements is not true regarding prepaid expenses? c. The adjustment for prepaid insurance was omitted. c. debit Insurance Expense, $2,100; credit Prepaid Insurance, $2,100 Whenever an individual stops drinking, the BAL will ________________. a. debit Unearned Gym Memberships; credit Gym Memberships Revenue Before and after the puppies are born, each regular checkup will be $20. See all questions asked by natashavale1025. Property, Plant, and Equipment; Accumulated Depreciation. A. Additional materials will not be considered or returned. D) Whenever transactions affect the revenue or expenses of more than one. Office Furniture Owner withdrawals Unearned Revenu. b) Decrease by $9,800. Also indicate whether the items in error will be overstated or understated. Asset b. Definition of Accrual Adjusting Entries Accrual adjusting entries or simply accruals are one of three types of adjusting entries which are prepared at the end of an accounting period so that a company's financial statements will comply with the accrual method of accounting. d) Net income will be overstated and total assets will be overstated. Contract level IICA-2. -Depreciation for the month of March: $2,300. c) A credit to Child Care Fees Earned of $4,500. d. debit to Dividends and a credit to Wages Payable, Supplies are recorded as assets when purchased. c. Unearned Subscriptions a) Assets and liabilities b) Assets and owners' equity c) Assets and expenses d) Assets and revenues. Question 1 Which of the following are considered the original "chronic eight" conditions from the 2008 Risk Adjustment Data Technical Assistance for Medicare Advantage Organizations Participation Guide? a. However, it does not protect against aspiration. b) Prepaid expenses represent assets. a. an increase in liabilities b. decrease in liabilities c. decrease in revenue d. increase in assets, Inventory held by a business is a(an) __________ and when sold becomes a(an) __________. b) The entry to pay salaries. D) Patient Billing and Collections-Chapter 18 Flashcards | Quizlet Liabilities, expenses, and assets. b) Treats as material only those items that are greater than 2% or 3% of net income. d) $34,240. In ICD-10, adjustment disorder is classified under 'Neurotic, stress-related and somatoform disorders' (code F43.2), unlike DSM-IV-TR where is it is not classified under any particular group. Then, identify whether the item increases, '+', or decr, An unearned revenue account is usually considered to be a(n) A) Liability B) Asset C) Revenue D) Expense. In previous chapter, we discussed the various factors that may influence P/E ratios. c. dividend The prepaid insurance account had a balance of $3,000 at the beginning of the year. FromBalanceSheetsAccountsReceivableFromIncomeStatement:SalesDec. - Net income increases. c. records revenues when cash is received and expenses when they are incurred = 15 ? 1) Unearned revenue appears: a) Are needed whenever revenue transactions affect more than one period. Emotional Intelligence - a Possible Predictor of Performance or Success Which is an example of asset overstatement fraud? Get access to this video and our entire Q&A library, Adjusting Entries: Definition, Types & Examples. d) A liability. d. Building, equipmen, Which of the following is an appropriate representation of the accounting equation? a) Debit Unearned Rental Revenue $15,000 and credit Rental Revenue $15,000. If the balance of supplies at the start of the month was $900 and at the end of the month you had $350 on hand, the adjustment for Supplies would be: $450. Indicate also the type of financial statement. Revenues, Liabilities, Owners' Equity b. Note that the product can be found mentally, without the use of a calculator or pencil-and-paper calculations. b) Liabilities checks not accepted by the bank. B. The adjusting entry on December 31 is Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay. d) The entry to convert liabilities to revenue. or in longer cases. This month, the last day of the month falls on a Thursday. d) Are generally made daily. WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. a) Materiality a. depreciation expense for each major class of asset b. balances of major classes of depreciable assets, by nature or function c. accumulated depreciation on, Which of the following is not acceptable treatment for the presentation of current liabilities? (a) Revenue collected in advance (b) Accrued interest payable (c) The current portion of long-term debt (d) All of the above are correct. The customer is the director of a nearby animal shelter. c) It increases, Unearned revenue is what type of an account? Borders and boundaries The boundaries of adjustment disorder are not well defined in the current classifications. a. assets b. liabilities c. gains d. expenses, What type of account is prepaid expense? During the month, Farad sold 50 trucks at an average price of $9,000 each. c) An overstatement of liabilities offset by an understatement of owners' equity. c. net income or loss will be properly reported on the income statement The following information has been assembled in order to prepare the required adjusting entries at December 31: a. revenue, expense b. liability, asset c. asset, liability d. asset, expense, The type of account and normal balance of Accumulated Depreciation are: a) contra asset, debit b) asset, credit c) asset, debit d) liability, credit e) contra asset, credit, Which of the following would not be classified as a current asset? B) Which of the following accounts would likely be included in a deferral adjusting entry? 31,2018$85,0002018700,000Dec. d) Debit Interest Expense $2,100 and credit Accrued Interest Payable $4,200. D. Paid $4,000 for o, Which of the following is not considered a type of long-lived asset? Depreciation on eligible infrastructure assets need not be recorded if the assets are being maintained at or abo, According to SFAC No. This payment included interest charges of $6,300, $2,100 of which were applicable to the period from January 1 through January 10. CPA wishes to use a representation letter as a substitute for performing other audit procedures. Debit Depreciation Expense $578 and credit Automobile $578. D) Expenses. A. If United Shipping makes monthly adjusting entries, which of the following is included as part of the March 31 adjusting entry? The District may choose to fill one or more positions from this recruitment within six (6) months. 1. This was the question investigated in the Journal of Experimental Social Psychology (Vol. Which of the following groups are not considered a specialist by AICPA Professional Standards: A. Appraisers. Under which circumstance would the veterinarian not adjust or cancel a fee for services? What reasonable adjustments are. Assets and Liabilities B. Your chance of going to Disney World next year is 10%. d. a computer technician has installed the latest software updates, but you have not received an invoice or made payment, Which one of the accounts below would likely be included in an accrual adjusting entry? B) Revenue. b. accrual A) a. [ If you would like to come in, I would be happy to talk over the details and help with a payment plan that suits your budget." - is the best response. c) To accrue an uncollected revenue. By writing-down a fixed asset's depreciable cost now, there is less depreciation expense to match against future revenues. (b) The entry to record the portion of fees received in advance, which have now been earned: $3,000. The adjusting entry required by Great Kids Co. on January 30 includes: a. revenues and expenses are reported in the period in which cash is received or paid b. revenues are reported on the income statement in the period in which they are earned c. accrual basis of accounting supports the matching concept Advanced Limiting Techniques - Mastering The Mix Suppose Dr. Milton's checking account has a balance of $3,458.92. B) adaptive smoothing. d) An entry to convert a liability to a revenue. d . Account Adjustments: Types, Purpose & Their Link to Financial Listing current liabilities in order of maturity. Which of the following will occur if an adjusting entry to record an unrecorded receivable is NOT made? a) $5,120 E) running sum of forecast errors (RFSE). Change in amortization period for an intangible asset. c) $1,200 cash dividends are declared and paid. b) $41,160. d) $222,900. 1) Before any month-end adjustments are made, the net income of Russell Company is $38,000. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: In a recent balance sheet, Microsoft Corporation reported Property, Plant, and Equipment of $27,804 million and Accumulated Depreciation of $14,793 million. Contract type International ICA. d) Equal $9,800. Hardship circumstances d) To record unearned revenue. UNOPS Jobs | Vacancy - Finance Manager A debit to an expense and a credit to cash. a. 35. (3) On December 1, rent on the office building had been paid for four months. a. d. debit Gym Memberships Expense; credit Unearned Gym Memberships, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus. c) Paid for. Nearly 13 years after the crash, Barker attempted to address his fear of flying . Revenues B. b. deferral (pdf) Introduction Congress is fast approaching the need to take action on the nation's statutory debt limit, often referred to as the debt ceiling. 1) Which of the following is not a purpose of adjusting entries? D. An entry to convert an asset to a liability. The Web site's directory was searched for those with "average" American names (e.g., "John Smith," "Sara Jones"). finding a different way to do something. The customer claims he can't pay today, but he hopes to be able to pay next month. a. still on hand Sweat gland b. Hairc. However, the following adjustments are necessary: office supplies used, $3,160; services performed for clients but not yet recorded or collected, $3,040; interest accrued on a note payable to bank, $3,640. Which of the following is not a characteristic of the accrual basis of accounting? It therefore provides a plausible reason as to why human trafficking charges are often dropped or why traffickers are often charged under related crimes, such as forcible confinement, extortion, etc. d) Realization principle and matching principle. Identify where the following item would be reported in the financial statements. Which of the following accounts would likely be included in an accrual adjusting entry? b. Indicate which items will be erroneously stated, because of the error, on (A) the income statement for the year and (B) the balance sheet as of October 31. a) Increase by $9,800. 1) Before making month-end adjustments, net income of Cardinal Company was $116,000 for March. a) Asset b) Liability c) Expense d) Owners' equity, Which of the following is the accounting equation? a. Liability c. Equity d. Revenue e. Expense, Identify the type of account for the following: Owner Capital a. 1) Gamma Company adjusts its accounts at the end of each month. Accounting - Chapter 4 Flashcards | Quizlet 57. b) The entry to record depreciation expense. d) As a part of the retained earnings. SEJPME PRETEST Flashcards | Quizlet 1) Adjusting entries help achieve the goals of accrual accounting by applying which two accounting principles? Question 7 options: Which of the following is not an adjusting entry? INTRODUCTION. Increase an asset; increase revenue. A. Each earns $800 per week for a five-day work week ending on Friday. D) decreases owner's equity and assets. c) In the period in which they are paid. $2,100 c) To prepare the revenue and expense accounts for recording transactions of the following period. Liability c. Equity d. Revenue e. Expense, Identify the type of account for the following: Legal Expense a. c. an accrued expense 3. Accumulated Depreciation. Assets and Revenues b. Rent expense amount b. Which type of probability (empirical, classical, subjective) is each of the following? A) exponential smoothing. c. revenue, asset \\ a. c) Record certain revenue and expenses that are not properly measured in the course of recording daily routine transactions. Which of the following is considered to be unearned revenue? Debit Interest Expense $250. b) Debit Rental Revenue $5,000 and credit Unearned Rental Revenue $5,000.