b) Accounts receivable will be credited for $400. Which of the following defines long-term liabilities? What defines a long-term investment? b) Any unused prepaids existing at end of period are transferred to asset accounts. a 24-month insurance policy was prepaid Structured Query Language (known as SQL) is a programming language used to interact with a database. Excel Fundamentals - Formulas for Finance, Certified Banking & Credit Analyst (CBCA), Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management Professional (FPWM), Commercial Real Estate Finance Specialization, Environmental, Social & Governance Specialization, CFIs Advanced Financial Modeling & Valuation Course, Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management Professional (FPWM). Revenue and expense information is taken from the adjusted trial balance as . Patent (Check all that apply.) 1. Accrual basis accounting recognizes __________ when earned and records __________ when _________ in order to adhere to the matching principle. The journal entry to record the payment of salaries on January 4 includes: Review the statements below and select the items that are correct regarding the operating cycle for a business. For the current year, Bubbles Office Supply had earned $600 of interest on investments. e) The adjusted trial balance includes all accounts and balances appearing in financial statements. Demonstrate your knowledge of a depreciation adjusting entry by completing the following sentence. What percentage of total revenues is the short-term unearned revenue? c) Debit Interest revenue for $600. -The adjusted trial balance is a list of accounts and their balances after adjusting entries have been posted. d) Record all prepaid expenses with credits to expense accounts. Chimney Sweeps provided chimney cleaning services to several clients during the month of February. 3. prepare the adjusted trial balance What is the difference between an adjusted trial balance and an unadjusted trial balance? Unearned revenue is money received by an individual or company for a service or product that has yet to be fulfilled. -They are reported on a balance sheet. (Check all that apply. c) Record all prepaid expenses with debits to expense accounts. -The adjusted trial balance is used to prepare financial statements. Which of the accounts below are considered accrued expenses? -Temporary accounts have a balance for one period only. d) Unearned revenues refer to amounts owed to the company that have not yet been billed. The required adjusting journal entry on December 31 includes a: (Check all that apply.). Supplies expense would be debited for $600. -Accounts payable On January 4 of the current year, total salaries for the five-day week are paid. Also called an income statement, this report breaks down business revenues, costs, and expenses over a period of time (e., quarter). 6. (Check all that apply. -Most operating cycles are less than one year. prepare an adjusted trail balance Explanation: The unearned revenue is the amount i.e. -Entering the titles of all accounts and their account number. Explain what unearned revenues are by selecting the statements below which are correct. Which of the following accounts would be considered a prepaid expense or prepaid asset account? -The adjusted trial balance includes all accounts and balances appearing in financial statements. f) Accounts are generally listed in the same order as listed in the chart of accounts. They are reported on an income statement. a) They are reported on an income statement. Payment received, but Good or Service still hasn't been delivered. A link to the site is provided on the Web site for this textbook. Closing means to transfer account balances from_______ accounts so that they will start with a ________ balance at the beginning of the next period. They are reported on a balance sheet. Russia has nearly doubled its revenues from selling fossil fuels to the EU during the two months of war in Ukraine, benefiting from soaring prices even . b. c) December 31 Cash would be credited for $4,000. Rather than debiting an asset account, which of the following statements explains an alternate recording procedure to journalize prepaid expenses, such as prepaid rent or supplies. Accrual basis accounting recognizes (equity/revenues/expenses) when earned and records (revenues/expenses/liabilities) when (incurred/paid) in order to adhere to the matching principle. Course Hero is not sponsored or endorsed by any college or university. S(x)=0.00850x2+1.25x+0.8540.264x2+10.7x66.9. e) Total assets will be increased. (Check all that apply.) By the end of the accounting period, employees have earned salaries of $500, but they will not be paid until the following pay period. Indicate whether each account would be reported in the (a) current asset; (b) property, plant, and equipment; (c) current liability; (d) long-term liability; or (e) owners equity section of the December 31, 2015, balance sheet of Kangaroo Consulting. The journal entry to record the payment of salaries on January 4 includes: Debit to Salaries Payable for $500; Debit to Salaries Expense for $2,000. (Check all that apply. The following table shows the percent of obese Americans who are severely obese for selected years from 199019901990 and projected to 203020302030. Which of the accounts below are considered accrued expenses? In this free session, the client explains her or his situation, and the attorney evaluates the options. d) The adjusted trial balance generally has more accounts listed than the unadjusted trial balance. d) Debit Cash for $600. Being overweight increases the risk of diabetes, heart disease, and many other ailments, but the severely obese (BMI\mathrm{BMI}BMI 40\geq 4040 ) are most at risk and the most expensive to treat. Accounts receivable is not involved. Multiple select question. b) The adjusted balance is computed by taking that account's amount from the Unadjusted Trial Balance column and adding or subtracting adjustments. a) Each adjustment is identified by a letter in parentheses that serves as a cross-reference to the debit and credit side of the adjustment. They are a liability. Check each other's answers when you are finished. $1,000 of supplies were purchased at the beginning of the month. Multiple select question. Unearned revenue, sometimes referred to as deferred revenue, is payment received by a company from a customer for products or services that will be delivered at some point in the future. It is increased with a debit and is considered an asset account. (The Supplies account was increased at the time of the initial purchase.) Supplies would be credited for $200. Using the double-declining-balance method of depreciation, calculate the following amounts for the car for each of the four years of its expected life: a. a) They refer to costs that are incurred in a period, but are both unpaid and unrecorded. Show your understanding of the steps involved in adjusting entries by placing the following steps in the correct order of preparation. 1) determine what the current account balance equals 2) determine what the current account balance should equal 3) record an adjusting entry Place the steps in the adjusting process in the correct order in which they would be performed. Choose the statement below that explains what "closing" means. Prepaid expenses are eventually expected to become: a. revenues when the liability is no longer owed b. revenues when services are performed c. expenses when their future economic value expires d. Classify the type of adjustment. c) Service revenue would be credited for $300. b. (Check all that apply). As of the end of the period, $200 of supplies still remain. Which of the following statements about the Accumulated depreciation account is (are) correct? Visit the U.S. Exchange your quiz with another student's quiz. b) The adjusted trial balance is a list of accounts and their balances after adjusting entries have been posted. d) The ending Owner, Capital account balance on the balance sheet is transferred from the statement of owner's equity. b) $199.26 (Check all that As of December 31, none of this interest had been received or recorded. ), Which of the accounts below would be classified as long-term or fixed assets? or product. By the end of the year, $400 had been earned. The accounting cycle is repeated each reporting period and refers to the steps taken in preparing financial statements. b) The balance sheet is the first financial statement prepared. -The income statement is the first financial statement prepared after preparing the adjusted trial balance. $300 were used during the month. A plant asset refers to a long-term tangible asset used to produce and sell products or services. It is the top line or gross income figure . (Check all that apply.). -Taxes payable -A temporary account Choose the statement below that demonstrates the correct adjusting entry to recognize depreciation expense on a building. Explain the difference between the unadjusted and the adjusted trial balance. b) Wages expense will be debited for $4,000. Multiple select question. b) Credit Interest expense for $30. Yahoo! $1,000 of supplies were purchased at the beginning of the month. (The Unearned revenue account was increased at the time of the initial cash receipt.) Below is an example of Amazon's 2017 income statement. Which of the following is (are) true regarding timeliness and the importance of periodic reporting? Reason: apply.) d) debit accounts receivable. When preparing an income statement, revenues will always come before expenses in the presentation. d) Credit Accounts receivable for $600. The entire $3,000 goes into the Unearned Revenue account because you've been paid for work you have not yet completed. $800 of supplies were purchased at the beginning of the month and the Supplies account was increased. Recently, he discovered Amazon Prime services. The journal entry on February 1 is? Explain what unearned revenues are by selecting the statements below which are correct. (Check all that apply.). Building a) liabilities on the balance sheet will be overstated. d) The original date of the transaction being adjusted. (Check all that apply.) Which of the statements below describe(s) a temporary account? This principle is a major part of the _________ process. They are also called deferred revenues. By the end of the period, $400 of the policy had expired. Username * E-Mail * Password * Confirm Password * Captcha * 33:5-33+11*3-11:3 = ? $300 were used during the month. A plant asset is considered temporary and will be used up within one accounting period. b) It reports amounts owed to employees and is a liability. What is the trend in the average unit price of VCRs between 1998 and 2003? The revenues of a company are the net sales proceeds. ), -They refer to costs that are incurred in a period, but are both unpaid and unrecorded. High Yield Insider Buys (a) prepaid expense (b) unearned revenue (c) accrued revenue (d) accrued expense Multiple choice question. Select the statement below that explains how to use the Income Summary account. Long-term liabilities are debts of a business that are not due to be settled within one year. Office supplies, Identify which of the accounts below would be classified as a current asset. They refer to earnings which have been earned, but not yet billed. (The Supplies account was increased at the time of the initial purchase.) Record the closing entries on Page 27 of the journal. Unearned revenues refer to customer payments which have not yet been received. b) The adjusted trial balance contains only the accounts which were adjusted. (Check all that apply. what would be a logical or realistic accounting period for a business that is creating financial statements? c) Balance sheet, income statement, statement of owner's equity, statement of cash flows Cash will be debited for $900. Review the following statements and determine which is (are) correct regarding an adjusted trial balance and how it is used In preparing financial statements. McDarrel's records $500 of accrued salaries on December 31. They are a liability. d) Unearned revenue would be debited for $300. Cash will be debited for $600. The adjusted trial balance includes all accounts and balances appearing in financial statements. (Put the first step at the top.) Journalize the adjusting entries for the month and prepare the adjusted trial balance. The adjusted trial balance is prepared after adjusting entries have been recorded and posted. (The Supplies account was increased at the time of the initial purchase.) Multiple choice question. The required adjusting entry would be to debit the Salaries _____expense/payable) account and____debit/credit) the Salaries ____expense/payable/unearned) account. Answer: Unearned revenues refer to cash received in advance of providing a service or product. How will Chimney Sweeps record this transaction? (Check all that apply.). -Retained Earnings is a permanent account, but Dividends is a temporary account. Sheldon Company had $500 for one day of accrued salaries on December 31 of the prior year. -They are reported on an income statement. -It is a tangible long-term asset. c) Cash; Notes receivable; Land, a) Unearned revenue; Supplies; Prepaid rent. Reason: (Check all that apply.). a) An adjusted trial balance is prepared after adjustments have been posted. The compensation could be a cash payment or a . A plant asset can be defined by which of the following statements? d) Expenses are increased. Demonstrate the required adjusting journal entry by selecting from the choices below. A depreciation adjustment would include a debit to ______ (depreciation expense/accumulated depreciation/building) and ______(debit/credit) to ____depreciation expense/accumulated depreciation/building). Explain what unearned revenues are by choosing the correct statement below. a. ), -Mortgage payable Demonstrate what the correct adjusting entry should include by choosing the correct statement below. 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