Which of the following statements is incorrect? Multiple Choice An unadjusted trial balance shows the account...
Which of the following statements is incorrect?
Multiple Choice
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An unadjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments.
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Interim financial reports can be based on one-month or three-month accounting periods.
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The fiscal year is any 12 consecutive months (or 52 weeks) used by a business as its annual accounting period.
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Property, plant, and equipment are referred to as plant assets.
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An income statement reports revenues earned less expenses incurred.
On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On July 1 Olive should record:
Multiple Choice
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A debit to an expense and credit to Cash for $7,500.
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A debit to Cash for $7,500 and a credit to an expense for $7,500.
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A debit to an expense and credit to a prepaid expense for $7,500.
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A credit to a prepaid expense and a debit to Cash for $7,500.
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A debit to a prepaid expense and a credit to Cash for $7,500.
Which of the following is classified as a current asset?
Multiple Choice
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Office equipment.
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Office supplies.
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Land.
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Unearned revenue.
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Patent.
Homework Answers
Question 1
Correct answer--------Interim financial reports can be based on one-month or three-month accounting periods.
Interim financial reports can be of 1 month, 3 months or even 9 months.
Basically a financial statement lower than 12 months is an interim financial statement.
Question 2
Correct answer--------A debit to a prepaid expense and a credit to Cash for $7,500..
The expense will be debited when expense are actually incurred not when they are paid.
$7500 will be debited as expense in 2 year period as and when they are incurred. When expense will be incurred, expense will be debited and Prepaid expense will be credited.
Question 3
Correct answer--------Office supplies.
Office equipment,Land,and patent are long term assets wgereas unearned revenue is a liability. Supplies i=on the other hand is a current asset.
Add Answer to:
Which of the following statements is incorrect?
Multiple Choice
An unadjusted trial balance shows the account...
Which of the following statements are true? Multiple Choice If the trial balance is in balance,...
Which of the following statements are true? Multiple Choice If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions The trial balance is a book of original entry. The trial balance is another name for the balance sheet as long as debits balance with credits. Another name for trial balance is chart of accounts. The trial balance is a list of all accounts from the ledger with their balances at...
On July 1 of the current calendar year, Olive Co. paid $8,700 cash for management services...
On July 1 of the current calendar year, Olive Co. paid $8,700 cash for management services to be performed over a two-year period beginning July 1 Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 of the current year for Olive would include: 8 ore 0 A debit to an expense and a credit to a prepaid expense for $6.525 0 Adebit to an expense...
Chapter 3 - Instruction #1 The unadjusted trial balance for PS Music as of July 31,...
Chapter 3 - Instruction #1 The unadjusted trial balance for PS Music as of July 31, 2019 is as follows: PS Music Unadjusted Trial Balance July 31, 2019 Account No. Debit Balances Credit Balances Cash 11 9,945 Accounts Receivable 12 2,750 Supplies 14 1,020 Prepaid Insurance 15 2,700 Office Equipment 17 7,500 Accounts Payable 21 8,350 Unearned Revenue 23 7,200 Peyton Smith, Capital 31 9,000 Peyton Smith, Drawing 33 1,750 Fees Earned 41 16,200 Wages Expense 50 2,800 Office Rent...
Continuing Problem Chapter 3 - Instruction #1 The unadjusted trial balance for PS Music as of...
Continuing Problem Chapter 3 - Instruction #1 The unadjusted trial balance for PS Music as of July 31, 2019 is as follows: PS Music Unadjusted Trial Balance July 31, 2019 Account No. Debit Balances Credit Balances Cash 9,945 2,750 Accounts Receivable Supplies 1,020 2,700 7,500 8,350 7,200 9,000 Prepaid Insurance Office Equipment Accounts Payable Unearned Revenue Peyton Smith, Capital Peyton Smith, Drawing Fees Earned Wages Expense Office Rent Expense Equipment Rent Expense Utilities Expense 16,200 2,800 2,550 1,375 1,215 Calculator...
The November 30, 2018, unadjusted trial balance of Solid Systems is found in the Trial balance...
The November 30, 2018, unadjusted trial balance of Solid Systems is found in the Trial balance tab. Solid Systems had the following transactions and events in December 2018. Dec. 2 Paid $1,210 cash to Lakeside Mall for Solid Systems' share of mall advertising costs. Dec. 3 Paid $620 cash for minor repairs to the company's computer. Dec. 4 Received $7,300 cash from Kelley Engineering Co. for the receivable from November. Dec. 10 Paid cash to Mary Potter for six days...
Chapter 3 - Instruction #1 The unadjusted trial balance for PS Music as of July 31,...
Chapter 3 - Instruction #1 The unadjusted trial balance for PS Music as of July 31, 2019 is as follows: PS Music Unadjusted Trial Balance July 31, 2019 Account No. Debit Balances Credit Balances Cash 119 12 ,945 2,750 Accounts Receivable Supplies Prepaid Insurance 1,020 15 2,700 Office Equipment 17 7,500 Accounts Payable Unearned Revenue 23 8,350 7,200 9,000 Peyton Smith, Capital Peyton Smith, Drawing 1,750 Fees Earned 41 16,200 Wages Expense 2,800 51 2,550 Office Rent Expense Equipment Rent...
5. The system of preparing financial statements based on recognizing revenues when the cabin when the...
5. The system of preparing financial statements based on recognizing revenues when the cabin when the cash is paid is called: A Accrual basis accounting. C. Revenue recognition accounting. B. Operating cycle accounting. D. Cash basis accounting. 6. The primary difference between deferred and accrued expenses is that deferred expenses have: A Been incurred and accrued expenses have not B. Not been incurred and accrued expenses have been incurred C Been recorded and accrued expenses have not been incurred D....
Adjusting Entries Below please find the unadjusted trial balance Williams Corporation Unadjusted Trial Balance As of...
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Unadjusted Trial Balance
Unadjusted Trial Balance - December 31, 2012DebitsCreditsCash$11,500Accounts Receivable3,500Supplies1,200Prepaid Rent24,000Equipment14,000Accumulated Depreciation$1,400Accounts Payable1,900Unearned Service Revenue2,800Common Stock10,300Retained Earnings7,500Dividends4,500Service Revenue91,350Salaries Expense55,000Advertising Expense900Utilities Expense650$115,250$115,250Additional Information:The equipment was purchased on January 1, 2011. The useful life is estimated to be 10 years.As of December 31, 2012, the company had accrued salaries of $950.Of the balance in the unearned revenue account, $500 had not been earned by year -end.On December 1, 2012, the company paid $900 for four months of advertising.A count of supplies on December 31,...
What is the primary difference between an asset and an expense? Multiple Choice An expense shows...
What is the primary difference between an asset and an expense? Multiple Choice An expense shows up on the balance sheet, while an asset shows up on the income statement Companies should try to maximize assets, while minimizing expenses. An asset is purchased in cash, while an expense is financed on account. An asset has future value, while an expense is used up in the current period. O Assets are temporary accounts, while expenses are permanent. An asset has a...
Which of the following statements are true? Multiple Choice If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions The trial balance is a book of original entry. The trial balance is another name for the balance sheet as long as debits balance with credits. Another name for trial balance is chart of accounts. The trial balance is a list of all accounts from the ledger with their balances at...
On July 1 of the current calendar year, Olive Co. paid $8,700 cash for management services to be performed over a two-year period beginning July 1 Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 of the current year for Olive would include: 8 ore 0 A debit to an expense and a credit to a prepaid expense for $6.525 0 Adebit to an expense...
Continuing Problem Chapter 3 - Instruction #1 The unadjusted trial balance for PS Music as of July 31, 2019 is as follows: PS Music Unadjusted Trial Balance July 31, 2019 Account No. Debit Balances Credit Balances Cash 9,945 2,750 Accounts Receivable Supplies 1,020 2,700 7,500 8,350 7,200 9,000 Prepaid Insurance Office Equipment Accounts Payable Unearned Revenue Peyton Smith, Capital Peyton Smith, Drawing Fees Earned Wages Expense Office Rent Expense Equipment Rent Expense Utilities Expense 16,200 2,800 2,550 1,375 1,215 Calculator...
The November 30, 2018, unadjusted trial balance of Solid Systems is found in the Trial balance tab. Solid Systems had the following transactions and events in December 2018. Dec. 2 Paid $1,210 cash to Lakeside Mall for Solid Systems' share of mall advertising costs. Dec. 3 Paid $620 cash for minor repairs to the company's computer. Dec. 4 Received $7,300 cash from Kelley Engineering Co. for the receivable from November. Dec. 10 Paid cash to Mary Potter for six days...
Chapter 3 - Instruction #1 The unadjusted trial balance for PS Music as of July 31, 2019 is as follows: PS Music Unadjusted Trial Balance July 31, 2019 Account No. Debit Balances Credit Balances Cash 119 12 ,945 2,750 Accounts Receivable Supplies Prepaid Insurance 1,020 15 2,700 Office Equipment 17 7,500 Accounts Payable Unearned Revenue 23 8,350 7,200 9,000 Peyton Smith, Capital Peyton Smith, Drawing 1,750 Fees Earned 41 16,200 Wages Expense 2,800 51 2,550 Office Rent Expense Equipment Rent...
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What is the primary difference between an asset and an expense? Multiple Choice An expense shows up on the balance sheet, while an asset shows up on the income statement Companies should try to maximize assets, while minimizing expenses. An asset is purchased in cash, while an expense is financed on account. An asset has future value, while an expense is used up in the current period. O Assets are temporary accounts, while expenses are permanent. An asset has a...
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