Revenue is report on the income statement in the period earned. The accounting concept supporting this report isa. The adjusting concept.b. The revenue recognition concept.c. The income statement concept.d. The cash communication concept.
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The record of adjusting entries is sustained by thea. Matching concept.b. Accuracy concept.c. Cash-basis of accounting.d. Price concept.
Barry company received $8,000 full payment in advancement for services that room 60 percent finish at the finish of the period. The adjusting entry willa. Debit Unearned Revenue because that $4,800 and credit company Revenue for $4,800.b. Debit Unearned Revenue because that $8,000 and credit organization Revenue for $8,000.c. Debit service Revenue for $4,800 and also credit Unearned Revenue for $4,800.d. Debit Cash for $4,800 and also credit company Revenue because that $4,800.
The built up depreciation account is calleda. A prepaid legacy account.b. An cost account.c. A contra heritage account.d. A legal responsibility account.
The adjusting entry for accrued revenuesa. Different from the journal entry to record revenue top top account.b. Includes a debit to a revenue account.c. Is the same journal entry together recording revenue top top account.d. Consists of a credit transaction to an legacy account.
The adjusting entry for accrued costs includesa. A debit come an cost account.b. A debit to a liability account.c. A credit to an expense account.d. A credit to an heritage account.
GreenSource firm began the duration with $330 in supplies. Throughout the month, secondary $1,500 of gives were purchased. A physics inventory in ~ the end of the duration revealed that there were $585 of offers on hand. The adjusting entry should include aa. Debit to gives for $585.b. Credit transaction to Supplies expense for $1,245.c. Credit transaction to Supplies price for $585.d. Credit to gives for $1,245.
Because collecting the adjustment data needs time, the adjusting entries are oftena. Entered and dated later than the critical day that the period.b. Omitted.c. Gone into later yet dated together of the critical day the the period.d. Estimated and recorded previously than the last day of the period.
Which the the following is true regarding adjusting entries?a. Adjusting entries space dated together of the an initial day the the new accounting period.b. Adjusting entries space optional with accrual-basis accounting.c. Adjusting entries room not post to the ledger.d. Nobody of these statements space correct.
Adjusting entries space dateda. At the beginning of the bookkeeping period.b. When an economic event occurs.c. In ~ the end of the accountancy period.d. When cash is received.
If the following adjusting entry is omitted, what effect will it have actually on net income?Depreciation price 4,300Accumulated Depreciation 4,300a. Net income will be overstated by $4,300.b. Net revenue will be overstated by $8,600.c. Net earnings will be understated by $4,300.d. That will have no result on net income.
Once the readjusted trial balance is balanced, it can be provided to preparea. The divide balance sheet.b. The income statement, the statement of owners" equity, and also the classified balance sheet.c. The share balance sheet and the income statement.d. None of these financial statement choices are prepared with the changed trial balance.
After i m sorry of the following errors would the readjusted trial balance totals not agree?a. The adjustment because that depreciation was omitted.b. A debit to account Receivable to be inadvertently posted together a debit to accounts Payable.c. A debit to account Receivable to be inadvertently posted together a credit to accounts Payable.d. Provides were miscounted and readjusted for the not correct amount.
The changed trial balancea. Is at a details date.b. Go not have a date.c. Is for a period of time.d. Nobody of these choices are correct.
Which the the following would not cause the adjusted trial balance totals to it is in unequal?a. The adjustment for accrued fees the $16,340 to be journalized as a debit to account Payable because that $16,430 and a credit transaction to Fees earned $16,340.b. The adjustment because that depreciation that $3,545 to be journalized together debit to Depreciation price for $3,454 and a credit to built up Depreciation the $3,545.c. The adjustment for prepaid insurance was omitted.d. Nobody of these selections are correct.
In the vertical evaluation of a balance sheeta. Each asset items is declared as a percent of complete assets.b. Each item is proclaimed as a percent of readjust from the previous period"s statement.c. Every liability items is proclaimed as a percent of total liabilities.d. Each item is stated as a percent that owner"s equity.
In the vertical evaluation of an income statementa. Every item is proclaimed as a percent of complete expenses.b. Every item is declared as a percent of earnings or fees earned.c. Total revenues are proclaimed as a percent the owner"s equity.d. Each item is declared as a percent of change from the vault period"s statement.
Comparing each line that a jae won statement with a complete amount native the very same financial statementa. Is referred to as horizontal analysis.b. Both of these choices.c. Is described as vertical analysis.d. No one of these options are correct.
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The adhering to are line items native the vertical evaluation of a balance sheet:Amount PercentTotal assets $300,000 300%Total liabilities $200,000 200%Total owner"s same 100,000 100%Total liabilities and also owner"s same $300,000 300%What needs to be readjusted on the statement?a. Total liabilities and owner"s equity must be expressed as 100%.b. Full owner"s equity should be expressed as 33%.c. Total assets should be expressed as 100%.d. Every one of these changes should it is in made.