美国会计Chapter 3 Practice Materials

126 ??Chapter 3—The Adjusting Process

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c. revenue d. liability

ANS: A DIF: Moderate OBJ: 03-02

If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n) a. deferral b. accrual c. drawing d. revenue

ANS: A DIF: Easy OBJ: 03-02

The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n)

a. capital b. asset

c. contra asset d. liability

ANS: B DIF: Easy OBJ: 03-02 Which of the following is an example of a prepaid expense? a. Supplies

b. Accounts Receivable c. Unearned Subscriptions d. Unearned Fees

ANS: A DIF: Easy OBJ: 03-02

The unexpired insurance at the end of the fiscal period represents a. an accrued asset b. an accrued liability c. an accrued expense d. a deferred expense

ANS: D DIF: Easy OBJ: 03-02 Accrued revenues would appear on the balance sheet as a. assets b. liabilities c. capital

d. prepaid expenses

ANS: A DIF: Easy OBJ: 03-02

Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n) a. asset b. liability c. contra asset d. expense

ANS: A DIF: Easy OBJ: 03-02

Unearned rent, representing rent for the next six months' occupancy, would be reported on the landlord's balance sheet as a(n)

Chapter 3—The Adjusting Process ??127

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a. asset b. liability

c. capital account d. revenue

ANS: B DIF: Easy OBJ: 03-02

Accrued expenses are ordinarily reported on the balance sheet as a. assets b. liabilities c. fixed assets

d. prepaid expenses

ANS: B DIF: Easy OBJ: 03-02 Fees receivable would appear on the balance sheet as a(n) a. asset b. liability c. fixed asset

d. unearned revenue

ANS: A DIF: Easy OBJ: 03-02

The general term employed to indicate a delay of the recognition of an expense already paid or of a revenue already received is a. depreciation b. deferral c. accrual d. inventory

ANS: B DIF: Easy OBJ: 03-02

The adjusting entry for rent earned that is currently recorded in the unearned rent account is a. Unearned Rent, debit; Rent Revenue, credit b. Rent Revenue, debit; Unearned Rent, credit c. Unearned Rent, debit; Prepaid Rent, credit d. Rent Expense, debit; Unearned Rent, credit

ANS: A DIF: Moderate OBJ: 03-02

Which of the following pairs of accounts could not appear in the same adjusting entry? a. Service Revenue and Unearned Revenue b. Interest Income and Interest Expense c. Rent Expense and Prepaid Rent

d. Salaries Payable and Salaries Expense

ANS: B DIF: Moderate OBJ: 03-02

The unearned rent account has a balance of $40,000. If $3,000 of the $40,000 is unearned at the end of the accounting period, the amount of the adjusting entry is a. $3,000 b. $40,000 c. $37,000 d. $43,000

ANS: C DIF: Moderate OBJ: 03-02

128 ??Chapter 3—The Adjusting Process

61. The following adjusting journal entry was found on page 4 of the journal. Select the best

explanation for the entry.

Unearned Revenue 4,500 Fees earned 4,500 ???????????????? a. Record payment of fees earned

b. Record fees earned at the end of the month

c. Record fees that have not been earned at the end of the month d. Record the payment of fees to be earned.

ANS: B DIF: Moderate OBJ: 03-02

62. The following adjusting journal entry was found on page 4 of the journal. Select the best

explanation for the entry.

Supplies Expense 360 Supplies 360 ???????????????? a. Adjust supplies inventory to actual b. Record purchase of supplies c. Adjust supplies expense d. Record sale of supplies

ANS: A DIF: Moderate OBJ: 03-02

63. The following adjusting journal entry was found on page 4 of the journal. Select the best

explanation for the entry.

Wages Expense 2,555 Wages Payable 2,555 ???????????????? a. Record the payment of wages

b. Record wages to be paid this month c. Record wages paid in advance

d. Record wages expense incurred and to be paid next month

ANS: D DIF: Moderate OBJ: 03-02

64. What affect will this adjustment have on the accounting records?

Unearned Revenue 4,500 Fees earned 4,500 a. Increase net income

b. Increase revenues reported for the period c. Decrease liabilities d. All are true.

ANS: D DIF: Easy OBJ: 03-02

Chapter 3—The Adjusting Process ??129

65. What affect will this adjusting journal entry have on the accounting records?

Supplies Expense 678 Supplies 678 a. Increase income b. Decrease net income c. Decrease expenses d. Increase assets

ANS: B DIF: Easy OBJ: 03-02

66. What affect will the following adjusting journal entry have on the accounting records?

Depreciation Expense 1,500 Accumulated Depreciation 1,500 a. Increase net income b. Increase revenues c. Decrease expenses

d. Decrease net book value

ANS: D DIF: Moderate OBJ: 03-02

67. How will the following adjusting journal entry affect the accounting equation?.

Unearned Subscriptions 12,000 Subscriptions earned 12,000 a. Increase assets, increase revenues b. Increase liabilities, increase revenues c. Decrease liabilities, increase revenues d. Decrease liabilities, decrease revenues

ANS: C DIF: Easy OBJ: 03-02 68. Which of the following is not true regarding Depreciation?

a. Depreciation allocates the cost of a fixed asset over its estimated life. b. Depreciation expense reflects the decrease in market value each year. c. Depreciation is an allocation not a valuation method.

d. Depreciation expense does not measure changes in market value.

ANS: B DIF: Difficult OBJ: 03-02 69. The account type and normal balance of Prepaid Expense is

a. revenue, credit b. expense, debit c. liability, credit d. asset, debit

ANS: D DIF: Easy OBJ: 03-02

70. The account type and normal balance of Accumulated Depreciation is

a. revenue, credit b. expense, debit