Question 1

__________________________ is the process of allocating the cost of plant assets to their expected useful lives.

Accepted Answer

The answer of __________________________ is the process of allocating the...

Question 2

On December 31, 2012, a company forgot to record $7,000 of depreciation on office equipment. What would be the effect on the assets, net income, and equity when it comes to the 2012 financial statements?

Accepted Answer

1 Assets are overstated by $7,...

Question 3

On October 15, a company received $15,000 cash as a down payment on a consulting contract. The amount was credited to Unearned Consulting Revenue. By October 31, 10% of the services required by the contract were completed. The company will record consulting revenue of $1,500 from this contract for October.

Accepted Answer

A) True 
 B)False

Question 4

Use the following partial work sheet from Matthews Lanes to prepare its income statement, statement of changes in retained earnings, and a balance sheet

Accepted Answer

The answer of Use the following partial work sheet from...

Question 5

Day Co. leases an office to a tenant at the rate of $5,000 per month. The tenant contacted Day and arranged to pay the rent for December 2014 on January 8, 2015. Day agrees to this arrangement.
a. Prepare the journal entry that Day must make at December 31, 2014, to record the accrued rental revenue.
b. Prepare the journal entry to record the receipt of the rent on January 8, 2015.

Accepted Answer

The answer of Day Co. leases an office to a...

Question 6

Shown below are selected data taken from the unadjusted and adjusted trial balances for the Simonson Company for the current year ended December 31. Determine the items A through H below.

Accepted Answer

The answer of Shown below are selected data taken from...

Question 7

Based on the adjusted trial balance, prepare a balance sheet for Martin Sky Taxi Services.

Accepted Answer

The answer of Based on the adjusted trial balance, prepare...

Question 8

Prepare a statement of retained earnings from the adjusted trial balance of Hanson Storage.

Accepted Answer

The answer of Prepare a statement of retained earnings from...

Question 9

Each letter below contains three of the steps found in the accounting cycle. Which presents the given steps in the proper sequence, first to last?

Accepted Answer

A)   Adjust, analyze transactions, close.
B)   Analyze transactions, adjust, close.
C)   Prepare post-closing trial balance, prepare statements, close.
D)   Prepare statements, post, close.
E)   Prepare adjusted trial balance, journalize, close.F) All of the above
G) B) and E)

Question 10

Which of the following is true of accrued revenues?

Accepted Answer

A)   Accrued revenues at the end of one accounting period often result in cash receipts from customers in the next period.
B)   Accrued revenues at the end of one accounting period often result in cash payments in the next period.
C)   Accrued revenues are also called unearned revenues.
D)   Accrued revenues are listed on the balance sheet as liabilities.
E)   Accrued revenues are recorded at the end of an accounting period because cash has already been received for revenues earned.F) All of the above
G) D) and E)

Question 11

The matching principle requires that expenses get recorded in the same accounting period as the revenues that are earned as a result of the expenses, not when cash is paid.

Accepted Answer

A) True 
 B)False

Question 12

Match between columns
                        Premises: The time span from when cash is used to acquire goods and services until cash is received from the sale of those goods and services.
A spreadsheet used to draft an unadjusted trial balance, adjusting entries, adjusted trial balance and financial statements.
Statements that show the effects of proposed transactions as if the transactions had already occurred.
Accounts that reflect on activities related to one or more future periods; they include all balance sheet accounts.
Entries recorded at the end of each accounting period to transfer end-of-period balances in revenue, expense and dividends accounts to retained earnings.
Accounts that are used to record transactions and events for one accounting period only; they include revenues, expenses and dividends.
Analyses and other informal reports prepared by accountants when organizing the information presented in reports and financial statements.
Recurring steps performed each accounting period, starting with analyzing and recording of transactions in the journal and continuing through the post-closing trial balance.
A temporary account used only in the closing process and to where the balances of revenue and expense accounts are transferred.
A list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.

Accepted Answer

The Answer of Pro forma and Temporary accounts and Post-closing is...

Question 13

Which of the following assets is not depreciated?

Accepted Answer

A)   Store fixtures
B)   Computers
C)   Land
D)   Buildings
E)   VehiclesF) B) and D)
G) C) and E)

Question 14

A trial balance prepared after the closing entries have been journalized and posted is the:

Accepted Answer

A)   Unadjusted trial balance
B)   Post-closing trial balance
C)   General ledger
D)   Adjusted trial balance
E)   Work sheetF) A) and E)
G) B) and E)

Question 15

Profit margin can also be called return on sales.

Accepted Answer

A) True 
 B)False

Exam 3: Preparing Financial Statements

Profit margin can also be called return on sales.

Correct Answer
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Shown below are selected data taken from the unadjusted and adjusted trial balances for the Simonson Company for the current year ended December 31. Determine the items A through H below.

Correct Answer
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Based on the adjusted trial balance, prepare a balance sheet for Martin Sky Taxi Services.

Correct Answer
verified

Use the following partial work sheet from Matthews Lanes to prepare its income statement, statement of changes in retained earnings, and a balance sheet

Correct Answer
verified

Which of the following assets is not depreciated?

Correct Answer
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The matching principle requires that expenses get recorded in the same accounting period as the revenues that are earned as a result of the expenses, not when cash is paid.

Correct Answer
verified

Match the following terms with the appropriate definition:

Which of the following is true of accrued revenues?

Correct Answer
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Correct Answer
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Correct Answer
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Prepare a statement of retained earnings from the adjusted trial balance of Hanson Storage.

Correct Answer
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A trial balance prepared after the closing entries have been journalized and posted is the:

Correct Answer
verified

__________________________ is the process of allocating the cost of plant assets to their expected useful lives.

Correct Answer
verified

On December 31, 2012, a company forgot to record $7,000 of depreciation on office equipment. What would be the effect on the assets, net income, and equity when it comes to the 2012 financial statements?

Correct Answer
verified
1 Assets are overstated by $7,...
View Answer

Each letter below contains three of the steps found in the accounting cycle. Which presents the given steps in the proper sequence, first to last?

Correct Answer
verified

Exam 3: Preparing Financial Statements

Profit margin can also be called return on sales.

Correct AnswerverifiedShow Answer

Shown below are selected data taken from the unadjusted and adjusted trial balances for the Simonson Company for the current year ended December 31. Determine the items A through H below.

Correct AnswerverifiedShow Answer

Based on the adjusted trial balance, prepare a balance sheet for Martin Sky Taxi Services.

Correct AnswerverifiedShow Answer

Use the following partial work sheet from Matthews Lanes to prepare its income statement, statement of changes in retained earnings, and a balance sheet

Correct AnswerverifiedShow Answer

Which of the following assets is not depreciated?

Correct AnswerverifiedShow Answer

The matching principle requires that expenses get recorded in the same accounting period as the revenues that are earned as a result of the expenses, not when cash is paid.

Correct AnswerverifiedShow Answer

Match the following terms with the appropriate definition:

Which of the following is true of accrued revenues?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Prepare a statement of retained earnings from the adjusted trial balance of Hanson Storage.

Correct AnswerverifiedShow Answer

A trial balance prepared after the closing entries have been journalized and posted is the:

Correct AnswerverifiedShow Answer

__________________________ is the process of allocating the cost of plant assets to their expected useful lives.

Correct AnswerverifiedShow Answer

On December 31, 2012, a company forgot to record $7,000 of depreciation on office equipment. What would be the effect on the assets, net income, and equity when it comes to the 2012 financial statements?

Correct Answerverified1 Assets are overstated by $7,...View AnswerShow Answer

Each letter below contains three of the steps found in the accounting cycle. Which presents the given steps in the proper sequence, first to last?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
1 Assets are overstated by $7,...
View Answer

Correct Answer
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