which of the following is not considered an adjustment?
Assets + liabilities = stockholders' equity b. c. not earned and the cash has not been received 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. Are they quantitative or qualitative in nature? 1) An asset purchased on January 1, 2015 for $60,000 that has an estimated life of 10 years will have a book value on December 31, 2018 of: Expert Answer. The recognition of depreciation expense for the period c. The recognition of the used and unused portions of a prepaid rent d. The entry to record the collection of interest receivable A) The variable being predicted is the Y variable. d) Net income will be overstated and total assets will be overstated. Which is the best response? Income statement B. d) Ordered. (5) All fees totaling $19,800 were earned during the month for clients who had paid in advance. Then you prepare a slip to deposit the checks accepted for payment. d. inventory, Which account would normally not require an adjusting entry? b. b) Crediting Wage Expense for $640 and debiting Wages Payable for $640. D) decreases owner's equity and assets. b) The entry to pay salaries. b. deferral basis b. it has A) Whenever revenue is not received in cash. (a) The entry to record depreciation: $3,000. 1) Depreciation expense is: (4) Depreciation of office equipment is based on an estimated useful life of five years. (b) Asset impa, Which of the following is considered in computing depreciation expense using the straight-line method? 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. a. \end{array} A. What type of account is Notes Payable? (c) The entry to record the earned portion of rent received in. A. c. $5,000 Before and after the puppies are born, each regular checkup will be $20. a. summarizes the changes in retained earnings for a specific period of time b. reports the assets, liabilities, and stockholders' equity at a specific date c. presents the revenues and expenses for a speci, What categories does commissions fall in: A. These adjustments are discussed below. 1) Prepaid expenses are: The adjusting entry required by Great Kids Co. on January 30 includes: a) An exact calculation prepared by an appraiser. The cash payment for accrued expenses occurs __________ the adjusting entry to record the accrued expenses. Which of the following groups are not considered a specialist by AICPA Professional Standards: A. Appraisers. In order to be considered for the position, please attach the following: 1. A) Adjustments include: Medical Savings Account, Form 8853 Educator Expenses d. liability, If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n) = 45/20 Demand a reason for nonpayment. Revenues, Liabilities, Owners' Equity b. 1) During the last month of its fiscal year, Echo Lake Resort provided catering services for local business. a. a) Debit Interest Expense $6,300. Revenues and expenses B. 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. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over- or understated in 2018 and 2019 . Supplies Fiscal Technician I . Assets + Dividends + Expenses= Liabilities + Common Stock + Retained Earnings + Revenues. b) As a liability on the balance sheet. checks that have a "stop payment" order. During the month, Farad sold 50 trucks at an average price of $9,000 each. Which of the following entries causes an immediate decrease in assets and in profit? b. debit Gym Memberships Revenue; credit Unearned Gym Memberships Debits a. debit to Wages Expense and a credit to Wages Payable -Depreciation for the month of March: $4,300. a. an accrued asset d) $42,000. Ramona's Nursery purchased playground equipment on January 1 with an estimated useful life of six years. c) Revenue accounts and expense accounts should not appear on the adjusted trial balance. Not recording contingent liabilities. -Fees earned in March that had been collected in advance: $2,600. Adjusting entries can be divided into the following four types. c. Underrecording depreciation expense. Asset b. a. assets Prepaid expenses. copyright 2003-2023 Homework.Study.com. Liability c. Equity d. Revenue e. Expense, Which one of the following represents the expanded basic accounting equation? d . the amount originally paid. A: Accrued revenues are those which have been accrued but not yet paid. b. debit Depreciation Expense; credit Accumulated Depreciation. On January 10, the mortgage payment was made. Wages Expense a. debit Depreciation Expense; credit Building. a. 1) Unearned revenue may also be called: a. theater tickets sold last month for yesterday's performance a. 1) The balance of an unearned revenue account: a) Appears in the liability section of the balance sheet. Explore the various types of adjusting journal entries, and examine how to do them. $3,900 c) On January 1, Empire Company began delivery service for a large client who will pay at the end of a three-month period. (5) All fees totaling $19,800 were earned during the month for clients who had paid in advance. b) Consumed. Liabilities, expenses, and assets. The correct term for the process of transferring amounts from a book of original entry to specific assets, liabilities, revenues, expenses, and stockholders' equity items is (select, Which of the following have debit balances? a. c. revenue, asset ($4,800 / 12 = $400 * 1 / 2 = $200). c) Debit Accrued Interest Payable $6,300. b) Midwood Consultants made payment in January for office rent for the first three months of the year. Depreciation expense- Accumulated Depreciation describes which of the following adjusted journal entry? A) Both revenues and assets will be understated. $400 Norma Company records the payment by debiting Prepaid Rent $2,200 and crediting Cash $2,200. d) Are generally made daily. b) As an asset on the balance sheet. ($60,000 / 10 = $6,000 * 4 = $24,000; $60,000 - $24,000 = $36,000). 1) Omega Company adjusts its accounts at the end of each month. A computer technician has installed the latest software updates, but you have not received an invoice or made payment. The company's monthly rent is $700. B. b) In the period with the higher earnings. d. records revenues and expenses when the company needs to apply for a loan, By matching revenue earned during the accounting period to related incurred expenses a) The entry to record depreciation. a) In the period in which they are earned. D. User: Alcohol in excess of ___ proof Weegy: Buck is losing his civilized characteristics. 1) Before making month-end adjustments, net income of Bobwhite Company was $232,000 for March. To see how XOM's P/E ratio stacks up to its peers, refer to Google Finance's Related Companies screen. Level ICS-10. Large corporations are not able to avoid underpaying their taxes by relying on the 100% of the tax shown on the return for the preceding year exception. 24 Questions Show answers. c) As a liability on the balance sheet. Increase in liabilities and reduction in net income. Department/office AFR, KEMCO, Kenya MCO. a. c) The entry to declare a dividend distribution. 1) Prepaid expenses appear: No more trying to get the same "feel" from a piece of paper or feeler gauge. Question 14 options: Change from straight-line to sum-of-the-years'-digits method of depreciation. a) Purchased. d) Matching. 2. Office Furniture Owner withdrawals Unearned Revenu. Asset b. A) Reasonable adjustments are changes an employer makes to remove or reduce a disadvantage related to someone's disability. First created in 1917 when the U.S. was entering World War I, the debt ceiling has been raised by Congress (and occasionally the president, when authorized to do so by Congress) dozens of times since then. Asset, Liability c. Liability, Liability d. Asset, Asset, Which of the following statements is true concerning all types of tax-free corporate reorganizations? Professional discounts a. deferral The cash payment for accrued revenues occurs __________ the adjusting entry to record the accrued revenue. d. Increase an expense; decrease an asset. a. d) Expenses. b. debit Insurance Expense, $1,500; credit Prepaid Insurance, $1,500 d. the future value of cash flows. c) Record certain revenue and expenses that are not properly measured in the course of recording daily routine transactions. What are the variables of interest? (2) The company's pays all employees up-to-date each Friday. Assets = liabilities + stockholders' equity c. Assets = liabilities d. Assets = liabilities + retained earnings, Which of the following is not a change in accounting estimate? 16/9 = Weegy: Whenever an individual stops drinking, the BAL will decrease slowly. Credit Interest Payable $2,500 a) Before financial statements and after a trial balance has been prepared. Which of the following is not true regarding the asset-liability approach to defining accounting elements? c. expenses in the period when they are paid Asset b. An entry to accrue unpaid expenses An entry to convert an asset to an expense. She has also heard that certain terms have special meanings in accounting relative to everyday use. b) Net income will be understated and total assets will be understated. Question 7 options: What reasonable adjustments are. a. income statement account and one balance sheet account Assets are transferred from one corporation to another. C. Liabilities, Identify the type of account for the following: Prepaid Insurance a. d. not earned but the cash has been received, Adjusting entries are c. the IRR. Contract level IICA-2. Which of the following statements is not true? a. Indicate with a Yes or No whether or not each of the following accounts normally requires an adjusting entry: YES Accumulated depreciation, salaries payable supplies and unearned rent NO frank kent, drawing land At the end of the current year, $23,570 of fees have been earned but have not been billed to clients. b) $41,160. Which of the following accounts normally has a debit balance? c. Expenses decrease stockholders' equity. Asset b. Owners' equity will be understated. C. Assets, expenses, and withdrawals. CPA wishes to use a representation letter as a substitute for performing other audit procedures. Listing current liabilities in order of maturity. $700 Whenever an individual stops drinking, the BAL will ________________. Which of the following may not be considered a "qualifying asset" under IAS 23? b. asset 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. A_____is a collection problem that requires immediate action because this individual has a balance due and has moved without leaving a forwarding address. Which of the following is most likely not considered an adjusting entry? C) Gains. (5) Fees of $9,800 were earned during the month for clients who had paid in advance. a. still on hand b) Debit Interest Expense $2,100 and debit Accrued Interest Payable $4,200. Is the gift you purchased for that special someone really appreciated? In payment, Esquire agreed to accept a 6%6 \%6% note requiring the payment of interest and principal on March 31,2019 . Which fraction has self adjusting force? b. deferred During the current period 500 books were sold for $20,000, and this amount was credited to Unearned Rental Revenue. Assets = Liabilities + Common Stock + Dividends - Revenue - Expenses b. a. unearned revenue b. stock dividend distributable c. the currently maturing proportion of long-term debt d. trade accounts payable, What types of account balances are increased by debits? d) $222,900. b) Only if the same accountant prepares the income statement each period. User: 3/4 16/9 Weegy: 3/4 ? Indicate whether the following account is considered an asset, a liability, a stockholders' equity, a revenue or an expense: Unearned Income. Unlike entries made . b. contra asset Nearly 13 years after the crash, Barker attempted to address his fear of flying . b) Only an estimate. Which of the following statements is incorrect? determines when revenue is credited to a revenue account, states that the revenues and related expenses should be reported in the same period, Using accrual accounting, expenses are recorded and reported only, when they are incurred, whether or not cash is paid, The accounting principle upon which deferrals and accruals are based is. An adjusting journal entry is usually made at the end of an accounting period to recognize an income or expense in the period that it is incurred. c. Intangibles; Accumulated Amortization. b) Debit Interest Expense $2,100 and debit Accrued Interest Payable $4,200. [1001][1562], [1652][1001]\left[\begin{array}{rr}-1 & 6 \\ 5 & 2\end{array}\right]\left[\begin{array}{ll}1 & 0 \\ 0 & 1\end{array}\right] The adjusting entry to record interest that has accrued on a note payable to the bank will cause an immediate: c. debit to Accounts Receivable and a credit to Wages Expense a. 1) On June 1, Norma Company signed a 12-month lease for warehouse space. A) Equity. (More) An entry to convert an asset to a liability D. An entry to convert a liability to a revenueE. Accumulated Depreciation. Accounts Receivable A debit to an expense and a credit to cash. 3321 (a) and 41 U.S.C.3901 ). a. debit Insurance Expense, $3,000; credit Prepaid Insurance, $3,000 d. snow removal services that have been provided and paid on the same day, Which of the following is considered to be an accrued expense? e. Increase an expense; d, Which basic element of financial statements arises from peripheral or incidental transactions? 1) Before making month-end adjustments, net income of Cardinal Company was $116,000 for March. b. net income or loss will always be overestimated a. Begin the equity section with Contributed Capital + Retained Earnings. 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. 29. Assets and liabilities C. Common Stock and liabilities D. Owner, Capital and assets, Which of the following statements is true concerning all types of tax-free corporate reorganizations? C. Engineers. Proof of Bachelor's Degree in Counseling, Psychology, or related field. How is "materiality" defined in the conceptual framework? The lease requires monthly rent of $550, with 4 months paid in advance. d. Cash, The balance in the prepaid rent account before adjustment at the end of the year is $32,000, which represents four months' rent paid on December 1. 1) Which of the following is considered an adjusting entry? b. . d. $6,400, Smokey Company purchases a one-year insurance policy on July 1 for $3,600. d) Only if the accounting periods are equal in length. Which of the following is NOT one of the three ways medical services can be achieved? Increase an asset; increase revenue. c. debit Salaries Payable; credit Salaries Expense Prior to the adjusting process, accrued expenses have, Prior to the adjusting process, accrued revenue has, Deferred revenue is revenue that is Indicate which items will be erroneously stated, because of failure to correct the initial error, on (a) the income statement for the month of November and (b) the balance sheet as of November 30. A) An entry to convert a liability to a revenue. Internal auditors. D. Paid $4,000 for o, Which of the following is not considered a type of long-lived asset? NOCCCD will not sponsor any visa applications. B. 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? a) Prepaid expenses appear in the balance sheet. Debit Depreciation Expense $578 and credit Accumulated Depreciation $578. View the full answer D) The practice's bank statement shows canceled checks. c) Net income will be understated and total assets will be overstated. a) Income. a) Assets b) Liabilities c) Owner Equity d) Expenditures, In accounting, what is the meaning of capitalized? (Provide paragraph citations.) 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) __________. An example of a contra-asset account is: .c) A credit to Child Care Fees Earned of $4,500. a) Debit Unearned Rental Revenue $15,000 and credit Rental Revenue $15,000. c) As an asset on the balance sheet. a) Materiality (If you click "Add or remove columns," you will find that you can obtain comparisons of a number of key statistics for either the most recent year or quarter.) 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. debit Salaries Payable, $12,000; credit Cash, $12,000 $3,600 When you have accessed the documents, you can use the search tool in your Internet browser. d) The entry to pay outstanding bills. The pet died and the family has complained about the effect of the treatment. B) adaptive smoothing. Liability c. Equity d. Revenue e. Expense, Which of the following entries causes an immediate decrease in assets and stockholders' equity? a) It is prepared before adjusting entries. Assets c. Stockholders' equity d. Expenses e. Liabilities, Which of the following current asset or current liability accounts is not included in the computation of cash flows from operating activities? CINCINNATI, Feb. 23, 2023 (GLOBE NEWSWIRE) -- () (the "Company" or "Hillman"), a leading provider of hardware products and merchandising solutions, reported financial resu 1) On December 31, Louis Jeweler's made an adjusting entry to record $4,200 accrued interest payable on its mortgage. 31,2017AccountsReceivable$85,000$105,000FromIncomeStatement:2018Sales700,000\begin{array}{lrr} Marriage and Family Therapy Certificate is required if applicant does not possess a PPS . d) Balance sheet items are presented before income statement items. 57. c. The concepts statements discuss the concept of "articulation" between financial statement elements. (2) The company pays all employees up to date each Friday. b. The Americans with Disabilities Act of 1990, a civil rights law, prohibits employers from discriminating against employees with disabilities. After recording these adjustments, net income for March is: a) To record unrecorded expenses. D) b) Deferred revenue. a. 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? a) $44,200. 59) Which of the following is not a characteristic of trend projections? B) a) An overstatement of assets and of net income offset by an understatement of owners' equity. C) $4,300 31,2017$105,000. The adjusting entry does not record entry for converting an asset to a liability. \text{From Income Statement:}&\textbf{2018}\\[2pt] a. b) The entry to record uncollected revenues. Assets + Dividends + Expenses = Liabilities + Common Stock + Revenues c. Assets - Liabilities - Divide, Which of the following would be caused by recording an adjusting journal entry to recognize depreciation? C) Revenues will be understated, but assets will be ov, Which of the following accounts has a normal debit balance? a. failure to adjust Unearned Revenue to recognize revenue earned b. failure to record depreciation for the year c. failure to accrue interest payable d, Which of the following statements best describes tax results to a shareholder in a section 351 transaction when liabilities on property transferred to the corporation are assumed by the corporation? Which of the following is an example of accrued revenue? d) $2,560, 1) Which of the following accounting principles is concerned with offsetting revenue with the expenses incurred in producing that revenue? -Depreciation for the month of March: $2,300. b) Decrease by $9,800. a. assets, liabilities, owner's equity b. assets, drawing, expenses c. assets, revenues, expenses d. assets, liabilities, revenues, Which of the following statements is true? This problem has been solved! This was the question investigated in the Journal of Experimental Social Psychology (Vol. Which type of probability (empirical, classical, subjective) is each of the following? c) Only if each accounting period covered is a full year. Over the phone, a new customer thinks her dog is pregnant and asks the veterinary receptionist what the total fee will be for obstetric care. d) As an expense on the income statement. d) To record unearned revenue. The adjustment for depreciation of $3,545 was journalized as debit to Depreciation Expense for $3,454 and a credit to Accumulated Depreciation of $3,545. Also indicate whether the items in error will be overstated or understated. Define debit and credit and explain how assets, liabilities, common stock, retained earnings, revenues, expenses, and dividends are affected (increased or decreased) by debits and credits. Your brickwall limiter settings will make or break your master. d. $8,000, Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $14,000 and unexpired insurance of $3,000, for the fiscal year ending on April 30? The prepaid insurance account had a balance of $3,000 at the beginning of the year. On page 14 of The Call of the Wild, what's meant by the phrase "The _____ is defined as to lose or give up hope that things will 15. Assets are transferred from one corporation to another. Identify where the following item would be reported in the financial statements. (1) A one-year bank loan of $720,000 at an annual interest rate of 12% had been obtained on December 1. Statement of changes. c. the cash account The cash basis of accounting records revenues and expenses when the cash is exchanged, while the accrual basis of accounting, records revenues and expenses when they are incurred, at least one income statement account and one balance sheet account, Prepaid expenses are eventually expected to become, expenses when their future economic value expires or is used up. If the beginning balance of the Accumulated DepreciationEquipment account is $10,000 and an adjusting journal entry is recorded for depreciation on the equipment for $2,500, the balance of the accumulated depreciation account after the entry is recorded will be, If an entry to adjust depreciation is not recorded at the end of the period, Depreciation Expense on the income statement will be, If the following adjusting entry is omitted, what effect will it have on the financial statements? c) Debiting Wage Expense for $4,480 and crediting Wages Payable for $4,480. 1. C) (4) Depreciation of office equipment is based on an estimated useful life of six years. A) Assets and Expenses B) Liabilities and Dividends C) Revenues and Liabilities D) Owners' Equity and Dividends. d) As a part of the retained earnings. b) A debit to Unearned Child Care Revenue of $4,500. If United Shipping makes monthly adjusting entries, which of the following is included as part of the March 31 adjusting entry? c. Offsetting current liabilities against assets that, Which item below is not a current liability? -Fees earned in March that had been collected in advance: $3,600. On February 3, Ron Brown was billed for an office visit. c. dividend c. optional under generally accepted accounting principles d. Accounts Receivable, If there is a balance in the prepaid rent account after adjusting entries are made, it represents a(n) a. accounts receivable b. land c. plant and equipment d. natural resources, Which of the following group of accounts are increased with a debit? Which of the following is not an adjusting entry? [1562][1001]. The Web site's directory was searched for those with "average" American names (e.g., "John Smith," "Sara Jones"). Which of the following situations is not considered an adjustment? a) $227,700. Psychosocial adjustment in siblings of children with autism whose families were using a home-based, applied behavior analysis (ABA) program was compared to that of siblings in families who were not using any intensive autism intervention. Borders and boundaries The boundaries of adjustment disorder are not well defined in the current classifications. Accumulated depreciation a. c) Prepaid expenses become expenses only as goods or services are used up. \text{From Balance Sheets}&\textbf{Dec. 31, 2018}&\textbf{Dec. 31, 2017}\\[2pt] The account was debited for $32,500 for premiums on policies purchased during the year. Insurance Expense c) Results in financial statements that are less useful to decision makers because many details have been omitted. Current assets b. 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? c. accrued a) Increase by $9,800. Which of the following would not cause the adjusted trial balance totals to be unequal? Why It Matters; 3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements; 3.2 Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions; 3.3 Define and Describe the Initial Steps in the Accounting Cycle; 3.4 Analyze Business Transactions Using the Accounting Equation and Show the Impact of Business .