ACG 2021 Lecture Notes - Lecture 3: Deferral, Accrual
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Moteki Company accumulates the following adjustment data on December 31
Indicate the type of adjustment (prepaid expenses, accrued revenues, and so on), and the status of accounts before adjustment (overstated or understated). (Enter answers in alphabetical order.)
1. Supplies of $100 are on hand.
2. Services provided but not recorded total $900.
3. Interest of $200 has accumulated on a note payable.
4. Rent collected in advance totaling $650 has been earned.
Type of Adjustment | Status of Account Balances before Adjustments |
HELP WITH THESE QUESTIONS!
1.Which basic principle of accounting states that assets areinitially recorded at the amounts paid to acquire the assets?
Select one:
A. Objectivity principle
B. Cost principle
C. Measuring unit concept
D. Going concern concept
E. None of the above
2.Urbana Company signed a one-year lease on April 1, 2016, andpaid the $22,800 total yearâs rent in advance. Urbana recorded thetransaction as a debit to Prepaid Rent and a credit toCash.
What adjusting entry should Urbana make on December 31, 2016 (noprevious adjustment has been made)?
Select one:
A.
Rent Expense | 17,100 |
Prepaid Rent | 17,100 |
B.
Prepaid Rent | 17,100 |
Rent Expense | 17,100 |
C.
Rent Expense | 5,700 |
Prepaid Rent | 5,700 |
D.
Prepaid Rent | 5,700 |
Rent Expense | 5,700 |
3.On January 1, 2016, Sirius Black Corporation's retainedearnings account had a balance of $1,570,000. During 2016 thecompany had revenues of $270,000 and expenses of $186,000. OnDecember 31, the companyâs retained earnings had a balance of$1,601,000.
Determine the amount of dividends paid during 2016.
Select one:
A. $85,000
B. $53,000
C. $26,500
D. $61,500
4.Which one of the following is not a reason for whichadjusting entries are made?
Select one:
A. To accrue expenses to reflect expenses incurred in the periodthat are not yet paid or recorded
B. To allocate the earned portion of unearned revenue to reflectrevenues earned during the period
C. To close the income statement accounts and prepare them forthe following year's activity
D. To allocate used or expired assets to reflect expensesincurred in the period
5.A trial balance that balances is useful because it indicateswith certainty that:
Select one:
A. All entries into accounts during the period were madecorrectly.
B. All accounts have normal balances.
C. Total debits in the general ledger equal total credits.
D. All of the above
The period end adjusting entry for bad debt expense under the allowance method is
Cash, debit; Accounts Receivable/customer name, credit. | |
not required. | |
Bad Debt Expense, debit; Accounts Receivable/customer name, credit. | |
Bad Debt Expense, debit; Allowance for Uncollectible Accounts, credit. |
Bach Instruments had total assets of $560,000; total liabilities of $250,000; and total Stockholders' Equity of $310,000. Bach's debt ratio is
44.6%. | |||||||||
28.7%. | |||||||||
80.6%. | |||||||||
55.4%. The entry to record selling 300 shares of stated value $60 common stock for $70 per share would be
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The Statement of Cash Flows reports the sources and uses of cash from all of the following EXCEPT
financing activities. | |||||||||||||||||||||||||||||||||
managerial activities. | |||||||||||||||||||||||||||||||||
operating activities. On the Income Statement, the results of discontinued operations are reported
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investing activities. What was the percentage of change in Accounts Receivable if the balance was $80,000 in 2013 and $60,000 in 2014?
In accounting, what is the meaning of capitalized?
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