test

depreation equation is

$24,000 × .06 × 45/360)

When recording the adjusting entry to recognize the consumed portion of unexpired insurance, the adjusting entry will include which of the following

A debit to Insurance Expense

hen accruing uncollected income, the required adjusting entry will consist of which of the following

A debit to an asset account and a credit to a revenue account

hen adjusting an unearned revenue account, which of the following should occur?

A portion of a liability is recognized as revenu

When adjusting for revenue that has accrued (been earned) but has not been recorded, which of the following will occur

A revenue account is increased and a liability account is increased.

The final adjusting entry usually involves which of the following

Accrued income taxes

In unprofitable periods, if the Income Taxes Payable account has an ending debit balance it is classified in the balance sheet as which of the following

An asset

n unprofitable periods, if the Income Taxes Payable has an ending debit balance it is reclassified as which of the following

An asset

When adjusting a prepaid expense account, a portion of an asset is recognized as which of the following

An expense

When the adjusting entry for an accrued expense is made, which of the following will occur

An expense is increased and a liability is increased

Which of the following is not one of the four general categories of adjusting entries?

Converting liabilities to expenses

depreciation is

Depreciation is an estimated measure of the allocation of the cost of an asset over its useful life

Which of the following is true about recording prepayments directly to an expense account

It is an acceptable practice

Your company has a policy of recording all consumable assets costing $200 or less as an expense, rather than as a prepaid expense (asset). This policy is based on which of the following

Materiality concept

After the end-of-period adjusting entries are recorded and posted, the next step in the end-of-period procedures requires which of the following

Preparing an adjusted trial balance

In the current period, wages were incurred that will be paid in the next accounting period. The required adjusting entry recognizes which of the following?

The expense incurred, and records a liability for future payment

In a prior period cash was paid in advance for an incurring expense. The required adjusting entry recognizes which of the following

The portion of the asset consumed or expensed, and reduces the balance of an asset account

When accruing unpaid expenses, the required adjusting entry will include which of the following

debit an expense account and credit a liability account

In the past period, customers paid for operas that were performed in the current period. The required adjusting entry recognizes which of the following

he portion earned as revenue, and reduces the balance of a liability account

In the current period, services were performed and delivered but the customer was not billed. The required adjusting entry recognizes which of the following

he revenue earned but not yet received, and records a receivable

Every adjusting entry involves the recognition of either revenue or expense. Which of the following is also true

here also must be a corresponding change in either assets or liabilities.

The purpose of adjusting entries is to:

recognize revenue earned but not yet recorded. recognize expenses incurred but not yet recorded. recognize the earned portion of services paid for in advance.

The realization principle requires:

that revenues earned but not yet received be recognized through an adjusting entry. that unearned revenues originally recorded as earned be converted to a liability through an adjusting entry.

The matching principle requires:

that the consumption of assets originally recorded as assets be recognized as expenses through an adjusting entry