ACCT1110

Current maturities of long-term debt would be classified as a current liability.

TRUE

If you are reversing one journal entry and immediately recording another one, you are MOST likely preparing a This is correct answer : A correcting entry. You got it wrong : B closing entry. C post-closing entry. D worksheet entry.

A

In addition to income statements, accountants can use a period's adjusted trial balance for a period to prepare which of the following? This is correct answer : A statement of owner's equity B reversing entries You got it wrong : C closing trial balance D closing entries

A

Which of the following statements is correct? This is correct answer : A A post-closing trial balance will show only balance sheet accounts. B A post-closing trial balance will show a zero balance for the balance sheet accounts. You got it wrong : C A post-closing trial balance will show only income statement accounts. D A post-closing trial balance will show a zero balance for all accounts.

A

On Dec 11 a company discovered that a 3D printer they purchased for $12,000 on Dec 1 had been debited to the Supplies account. If a correcting entry was done on Dec 11, which of the following statements would be TRUE? Select all that apply. A The total of the debits on the trial balance would be the same before and after the correcting entry has been posted. B The total of the assets on the balance sheet would be the same before and after the correcting entry has been posted. C The total debits and credits on the trial balance would be the same before the correcting entry is posted and after the adjusting entries have been posted. D The total of the assets on the balance sheet would be the same before the correcting entry was posted and after the adjusting entries were posted.

AB

When an error is found in the accounting records, what is (are) the recommended action(s) that could be taken? Select all that apply. A Compare the incorrect entry with the entry that should have been made. B Remove the incorrect amounts in the ledger and replace with the correct amounts. No alt text provided for this image C Reverse the incorrect entry and journalize the correct one. D Identify the accounts and amounts that should — and should not — have been made. E Correct the affected account balances on the trial balance.

ACD

How are correcting entries different from adjusting entries? Select all that apply. A Correcting entries can be made during the accounting period; adjusting entries are made at the end. B Correcting entries are compound entries; adjusting entries are simple entries. C Correcting entries must be made before the first trial balance; adjusting entries are made after. D Adjusting entries are posted; correcting entries are not. No alt text provided for this image E Correcting entries can involve any combination of accounts; adjusting entries must involve one balance sheet and one income statement account.

AE

After a company's accountants have prepared an adjusted trial balance, they can also use that information to prepare the income statement, statement of owner's equity, and which of the following? You got it wrong : A closing entries This is correct answer : B balance sheet C reversing entries D closing trial balance

B

As you are preparing the first journal entries for the new accounting period you discover two adjusting entries for unrecorded sales revenue from last period that should have been recorded in the current period. What should be your best course of action? A Do nothing. Sales revenue will balance out in the current year. This is correct answer : B Make certain the president of the company and others in positions of authority are advised of the situation. You got it wrong : C Prepare reversing entries that will be recorded in the previous year and then tell the president of the company. D Prepare correcting entries that will be recorded in the current year without notifying anyone.

B

At the beginning of the new fiscal year, the accountant for Toronto Toys made the following entry: DR Sales Revenue $5,500 CR Accounts Receivable $5,500 What is the purpose of this journal entry? You got it wrong : A It is a correcting entry to correct an error in recording sales revenue for the previous year. This is correct answer : B It is reversing the adjusting entry from the previous year that recognized unrecorded sales revenue. C It is an adjusting entry to record cash received for prior year's sales on account. D It is reversing the adjusting entry from the previous year that recognized unearned sales revenue.

B

Early in the month a $700 cash collection on account was recorded as a debit to Cash and a credit to Unearned Revenue. The error was discovered when the customer received a statement that showed $700 still owing. The correcting journal entry would include A a $1,400 debit to Unearned Revenue and a $1,400 credit to Cash. This is correct answer : B a $700 debit to Unearned Revenue and a $700 credit to Accounts Receivable. C a $700 debit to Cash and a $700 credit to Accounts Receivable. You got it wrong : D a $700 debit to Cash, a $700 debit to Account Receivable and a $1,400 credit to Unearned Revenue.

B

When a Prepaid Insurance adjusting entry for $450 was discovered to be backwards, immediately a reversing entry was prepared that debited Insurance Expense and credited Prepaid Insurance for $450. The next step in the correction process is to A do nothing else — the entry is corrected. This is correct answer : B debit Insurance Expense and credit Prepaid Insurance for $450. You got it wrong : C debit Insurance Expense and credit Prepaid Insurance for $900. D debit Prepaid Insurance and credit Insurance Expense for $450.

B

When Steely Equipment purchased a 3D printer on Jan 1, 2016 for $12,000, it was incorrectly recorded to the Prepaid Supplies account. The error was discovered on December 31, 2017, before adjusting entries were posted. Based on its intended usage, Steely expected the machine would last for four years and have no residual value. If equipment is depreciated on a straight-line basis, which of the following items would appear on the balance sheet? Select all that apply. A Accumulated Depreciation, $(3,000) B Equipment — Printer, $12,000 C Supplies, $(6,000) D Unrecorded Supplies Expense, $12,000 E Accumulated Depreciation, $(6,000)

BE

As you are preparing the first journal entries for the new accounting period you discover two adjusting entries for unrecorded sales revenue from last period that should have been recorded in the current period. You tell the president, who advises you to ignore it—it will balance out during the current year. You agree with the president and do nothing. Who could be hurt by your actions? A You, as you are most likely going against the code of conduct for accountants. B The shareholder who decides to buy more shares based on the income earned the previous year. This is correct answer : C The company, which may be subject to a tax audit. You got it wrong : D All of the choices are correct.

C

At the end of each accounting period, accountants should prepare a trial balance, journalize and post adjusting entries, and then do which of the following? A prepare financial statements You got it wrong : B journalize and post closing entries This is correct answer : C prepare an adjusted trial balance D analyze business transactions

C

Identifying the accounts and amounts that should — and should NOT — have been made is part of preparing A closing entries. B adjusting entries. This is correct answer : C correcting entries. You got it wrong : D income summary entries.

C

Jonelle Company has assets of $1,400,000, common shares of $400,000, and retained earnings of $200,000. What are the creditors' claims on the company's assets? A $1,000,000 You got it wrong : B $1,600,000 This is correct answer : C $800,000 D $1,200,000

C

Nikolas suggested it might be easier to use a worksheet to record adjusting entries because You got it wrong : A several steps in the accounting process could be skipped (Steps 4, 5, and 6). B it provides a copy of the financial statements in proper format. This is correct answer : C the process could be computerized. D it would eliminate the need to journalize and post the adjusting entries.

C

What is one thing adjusting and correcting entries have in common? A Both can involve any combination of accounts. You got it wrong : B Both involve reversing one entry and preparing a new one. This is correct answer : C Both must be journalized and posted before closing entries. D Both are made at the end of the month after the first trial balance.

C

When Steely Equipment purchased a 3D printer on July 1, 2015 for $12,000, it was incorrectly recorded to Supplies Expense. The error was NOT discovered until June 30, 2017. Based on its intended usage, Steely expected the machine would last for four years and have no residual value. If equipment is depreciated on a straight-line basis, which of the following accounts and amounts should be included in the correcting journal entry. Select all that apply. A DR Equipment-Printer, $6,000 B DR Accumulated Depreciation, $12,000 C CR Accumulated Depreciation, $6,000 D CR Supplies, $6,000 E DR Equipment-Printer, $12,000

CE

An accounting error was discovered in a company's accounting records that had three parts: the figures in the amount were transposed; the debits and credits were reversed; and one incorrect account was used. The MOST logical approach to fixing this error would be to prepare A one reversing entry and then record three correct entries. B three reversing entries and then record three correct entries. You got it wrong : C three reversing entries and then record the correct entry. This is correct answer : D one reversing entry and then record one correct entry.

D

At the beginning of the new fiscal year, the accountant for Toronto Toys made the following entry: DR Sales Revenue $5,500 CR Accounts Receivable $5,500 What is the purpose of this journal entry? You got it wrong : A It is a correcting entry to correct an error in recording sales revenue for the previous year. B It is reversing the adjusting entry from the previous year that recognized unearned sales revenue. C It is an adjusting entry to record cash received for prior year's sales on account. This is correct answer : D It is reversing the adjusting entry from the previous year that recognized unrecorded sales revenue.

D

If you are correcting an error found in the accounting records, you could reverse the incorrect entry and then You got it wrong : A post the reversing entry in the general ledger. B do nothing else — the error is corrected. C prepare the correcting entry at month-end with the adjusting entries. This is correct answer : D immediately prepare the correct journal entry.

D

On February 28 an order from a regular supplier for the supplies inventory was misplaced. The error wasn't discovered until April 3 when the supplier called demanding payment. A cheque was processed along with other payables on April 10. On which date should the correcting journal entry be recorded? A April 10. B April 30. You got it wrong : C February 28. This is correct answer : D April 3.

D

Philippe journalizes business transactions and then prepares a trial balance. Philippe overlooked which of the following steps? A analyzing the transactions You got it wrong : B posting of closing entries C preparing adjusting entries This is correct answer : D posting journal entries to the ledger

D