Signin/Signup
Signin/Signup
Info
Warning
Danger

Accounting Answers, Flashcards, Essays and Textbook Solutions

The hard task of handling college homework is one of the most common challenges in the path of student success. No student ever says, "Hey I love homework! Give me more!" (However nerdy they are) Yet, it is an unavoidable part of your college experience.

Ask an Expert

Our Experts can answer your tough homework and study questions.

Answers in as fast as 15 minutes
Post a Question
40.Which of the following journal entries is created to adjust for a previously recorded accrual?  A. Accounts receivablexxx B. Interest expensexxx C. Accounts receivablexxx D. Rent expensexxx 41.On July 1, 2016, Allen Company signed a $100,000, one-year, 6 percent note payable. The principal and interest will be paid on June.
6 Views
View Answer
128.The following income statement was reported for Bauer Inc. for the first year of operations ending December 31, 2016 reported (in thousands of dollars): Sales revenue $24,500 Expenses: Cost of sales$12,100 Wages5,300 Rent 900 Utilities   500 Miscellaneous     600 Total expenses   19,400 Income before taxes   5,100 Income tax expense      1,785 Net income.
13 Views
View Answer
21.Accounts that retain their balance from one period to the next are referred to as permanent accounts and include balance sheet accounts.  22.Accounts that start a new accounting period with zero balances are referred to as temporary accounts and include both balance sheet and income statement accounts.  23.Income statement accounts.
10 Views
View Answer
58.Which of the following does not correctly describe business transactions or events?   A. They include exchanges of assets or services by one business for assets, services, or promises to pay from another business. B. They include the using up of insurance paid for in advance. C. They have an economic impact on a business entity. D. They do.
11 Views
View Answer
Multiple Choice Questions 33.Which of the following best describes the operating cycle? A. It is the length of the manufacturing process. B. It is the time that elapses from the purchase of inventory on account to the sale of inventory on account. C. It is the time that elapses from the completion of.
5 Views
View Answer
108.Which of the following transactions would create an increase in cash from a financing activity?    A. Issuing shares of common stock to stockholders in exchange for cash. B. Selling a short-term stock investment in exchange for cash. C. Selling used equipment, which was a part of property, and equipment for cash. D. The payment.
8 Views
View Answer
73.A company purchased supplies for cash, which will be consumed during future months. Which of the following does not correctly describe the impact on the financial statements when the supplies are used during future months? A. Total assets will remain unchanged. B. Total assets will decrease. C. Operating expenses will increase. D. Operating.
6 Views
View Answer
78.Which of the following transactions will not change a company's total stockholders' equity?   A. Reporting of net income. B. Issuing stock to stockholders in exchange for cash. C. The declaration of a cash dividend. D. The purchase of a factory building. . 79.Alpha Company issued 1,000 shares of $10 par value common stock to stockholders, in exchange for $15,000 cash..
13 Views
View Answer
11.The adjusting entry to record accrued revenues results in an increase in assets and an increase in stockholders' equity.  12.The adjusting entry to record an accrued expense results in a decrease in both assets and stockholders' equity.  13.Rent of $4,000 collected in advance was recorded as unearned rent revenue. At.
11 Views
View Answer
80.Assume Idaho Company recorded the following adjusting journal entry at year-end: Insurance expense$2,000 Prepaid insurance $2,000 If the beginning balance in prepaid insurance was $500, and $2,500 was paid for an insurance premium during the year, what is the ending balance in the prepaid insurance account after the above adjusting entry?  A..
5 Views
View Answer
43.Trend Decorations Company provides decorating services for store displays. Trend sold equipment that it had been using to create decorations. Of the following choices, which will Trend report on its income statement when it sells the equipment? A. Operating revenue: Sales revenue B. Operating expenses: Loss on disposal of equipment C. Other.
7 Views
View Answer
116.Four transactions described below were completed during 2016 by Russell Company. The books are adjusted only at year-end. A. On December 31, 2016, Russell Company owed employees $3,750 for wages that were earned by them during December and were not recorded. B. During 2016, Russell Company purchased office supplies that.
7 Views
View Answer
128.Describe the general journal and the general ledger.    129.On January 1, 2016, Dr. Beth Hill started a new professional corporation, Beth Hill, P. C., to practice medicine with an initial investment of $100,000 in exchange for 20,000 shares of $2 par value common stock. On June 30, 2016, the accounting.
9 Views
View Answer
126.The ABC Corporation was formed on January 1, 2016. The three initial owners each invested $100,000 cash and each received 10,000 shares of $1 par value common stock. Below are selected transactions that were completed during January, 2016. 1. Issue shares of common stock to the owners. 2. Borrowed $80,000.
8 Views
View Answer
50.Which of the following does not correctly describe the following adjusting journal entry? Wages expensexxx Wages payable xxx A. Total assets do not change. B. The transaction is an example of an accrual. C. Stockholders' equity decreases. D. Net income is not affected. 51.Which of the following does not correctly describe.
7 Views
View Answer
70.What is the effect on the financial statements when a company fails to adjust the prepaid insurance expense account at year-end for insurance coverage that has been used?  A. Net income is overstated and stockholders' equity is understated. B. Expenses are understated and stockholders' equity is understated. C. Expenses are.
7 Views
View Answer
21.Revenue accounts have credit balances because they increase stockholders' equity. 22.Expense accounts have debit balances because they decrease net income, retained earnings, and stockholders' equity. 23.Purchasing a six-month insurance policy results in a debit to insurance expense and a credit to cash at the date of purchase. At the date.
8 Views
View Answer
103.Which of the following statements is false? A. The unearned revenue account has a credit balance. B. The revenue account has a credit balance. C. An expense account has a debit balance. D. A prepaid expense account has a credit balance. 104.Which of the following accounts does not have a debit balance? A. Prepaid.
8 Views
View Answer
48.In what order are current assets listed on a balance sheet?   A. By dollar amount (largest first). B. By date of acquisition (earliest first). C. By liquidity. D. By relevance to the operation of the business. 49.In what order would the following assets be listed on a balance sheet?   A. Cash, Short-term Investments, Accounts Receivable, Inventory. B. Cash, Intangible Assets, Accounts Receivable, Property.
10 Views
View Answer
Essay Questions 119.Why is the continuity assumption so important for balance sheet reporting?   120.Why is the separate entity assumption so important for balance sheet reporting?   121.Why is the historical cost principle so important for balance sheet reporting?   122.Complete the following schedule for Red Eye Company. TransactionAssetsLiabilitiesStockholders’ Equity Beginning balances$200,000$80,000$120,000 Borrowed $20,000 cash by signing a note payable.
8 Views
View Answer
Essay Questions 105.Describe the adjusted trial balance.    106.What is the purpose of adjusting entries? Give two examples of accruals and deferrals.    107.What are the purposes of closing entries? Describe permanent and temporary accounts.   108.On November 1, 2016, Bug Busters collected $6,000 in advance for three months of service to be provided beginning.
6 Views
View Answer
123.On January 1, 2016, the balance in the prepaid insurance account was $2,500. On December 31, 2016, after the 2016 adjusting entries were made, the balance of the prepaid insurance account was $1,200. During 2016, cash payments for insurance premiums amounted to $5,000, which was debited to the prepaid insurance.
7 Views
View Answer
53.Lantz Company has provided the following information: • Cash sales totaled $255,000. • Credit sales totaled $479,000. • Cash collections from customers for services yet to be provided totaled $88,000. • A $22,000 loss from the sale of property and equipment occurred. • Interest income was $7,700. • Interest expense was $19,900. • Supplies expense was $336,000. •.
153 Views
View Answer
114.Describe the difference(s) with respect to the cash basis of accounting and the accrual basis of accounting. 115.Why might managers be tempted to violate the revenue recognition principle and the expense recognition principle when preparing an income statement? 116.Describe the debit and credit logic pertaining to items reported on the.
7 Views
View Answer
134.What is the primary objective of financial reporting?    135.How is the current ratio calculated and what does it measure?   136.The Lake Company has provided the following account balances: Cash $76,000; Short-term investments $8,000; Accounts receivable $96,000; Supplies $12,000; Long-term notes receivable $4,000; Equipment $192,000; Factory Building $360,000; Intangible assets $12,000; Accounts.
12 Views
View Answer
124.Explain why the net income reported on the income statement is usually not equal to net cash flows from operating activities on the statement of cash flows.  125.Describe the operating activities section of the cash flow statement and provide three examples of operating activities cash flows.  126.Colby Company has provided.
11 Views
View Answer
60.Which of the following journal entries is used to record a deferral?  A. Interest expensexxx B. Accounts receivablexxx C. Wages expensexxx D. Cashxxx 61.Which of the following journal entries would not be used to record a deferral?  A. Prepaid rentxxx B. Cashxxx C. Suppliesxxx D. Cashxxx 62.Which of the following.
9 Views
View Answer
118.For each of the following accounts you are to enter one capital letter in each cell to indicate normal characteristics for each account. USE THE LETTER CODE GIVEN TYPE OF ACCOUNTCLOSING STATUSNORMAL BALANCEFINANCIAL STATEMENT A = AssetsL = LiabilitiesC = ClosedD = DebitB = Balance Sheet R = RevenueE = ExpensesN = Not ClosedC.
7 Views
View Answer
90.A calendar-year reporting company preparing its annual financial statements should use the phrase "At December 31, 2016" in the heading of which of the following? A. On all of the required financial statements. B. On only the income statement. C. On the income statement and balance sheet, but not the statement of.
11 Views
View Answer
118.Part A. Perform transaction analysis for Blake Company regarding the following transactions for the month of March. Indicate the account affected by the transaction as well as the increase (+) or decrease (-) to the components of the accounting equation and the amount. TransactionAssetsLiabilitiesStockholders’ Equity AccountAmountAccountAmountAccountAmount Ex.Paid wages for two weeks in March..
5 Views
View Answer
113.Center Company is completing the accounting cycle at the end of the annual accounting period, December 31, 2016. Adjusting entries have not been made during the year so three adjusting entries must be made at this date to update the accounts. The following accounts, selected from Center Company's chart of.
8 Views
View Answer
83.Which of the following liability accounts is likely to be satisfied without a future cash payment? A. Wages payable. B. Unearned subscriptions revenue. C. Accounts payable. D. Taxes payable. 84.A company receives a $50,000 cash deposit from a customer on October 15 but will not deliver the goods until November 20. Which of the.
8 Views
View Answer
127.Explain how adjusting entries provide for potential manipulation by managers. In addition, discuss how compensation arrangements may result in incentives for such manipulation to occur.    128.On September 1, 2016, Fast Track, Inc. was started with $30,000 invested by the owners as contributed capital. On September 30, 2016, the accounting records.
8 Views
View Answer
109.Below are two related transactions for Golden Corporation. The annual accounting period ends December 31. The books are adjusted only at year-end. A. October 1, 2016: Golden Corporation borrowed $100,000 and signed a note providing for 8% interest. The principal and interest are due in one year on September 30,.
12 Views
View Answer
68.A company's January 1, 2016 balance sheet reported total assets of $120,000 and total liabilities of $40,000. During January 2016, the following transactions occurred: (A) the company issued stock and collected cash totaling $30,000; (B) the company paid an account payable of $6,000; (C) the company purchased supplies for $1,000.
11 Views
View Answer
63.Which of the following is not a step pertaining to the revenue recognition principle beginning in year 2018, for more complex customer contracts, according to both U.S. GAAP and to International Financial Reporting Standards (IFRS)?  A. Determine the transaction price. B. Identify the performance obligations. C. Identify the contract between.
11 Views
View Answer
Essay Questions 111.What is the operating cycle? Describe a business entity with an operating cycle of less than six months and a business with an operating cycle of more than one year. 112.Describe the difference between operating revenues and gains from the sale of plant and equipment while providing examples of.
7 Views
View Answer
88.Which of the following correctly describes the recording of a dividend declaration by a company's board of directors?   A. A debit to retained earnings and a credit to cash. B. A debit to additional paid-in capital and a credit to dividends payable. C. A debit to cash and a credit to retained earnings. D. A debit to retained.
10 Views
View Answer
123.Complete the following schedule for Blue Eye Company. TransactionAssetsLiabilitiesStockholders’ Equity Beginning balances$300,000$180,000$120,000 Borrowed $18,000 cash by signing a note payable with a bank.   Purchased office equipment for $6,000.   Declared a dividend of $30,000 that will be paid in cash next month.   Purchased office supplies on credit, $8,000.   Sold 1,000 shares of $5 par value common stock to.
7 Views
View Answer
True / False Questions 1.At the time of the initial cash flow, deferred expenses are recorded as assets and when used in the future, expenses will increase, and liabilities will increase.  2.Deferred expenses are initially recorded as assets and when they are later used, expenses will increase and assets will decrease. .
20 Views
View Answer
True / False Questions 1.The operating cycle is the time that elapses between a company's cash payment to suppliers for inventory purchases and the collection of cash from sale of inventory to customers. 2.A retail store would likely have a shorter operating cycle than an automobile manufacturer. 3.The time period assumption.
13 Views
View Answer
131.The Alex Company, a consulting firm, recorded the following selected business transactions during May, 2016. Indicate whether each transaction would increase, decrease, or have no effect on the total assets of the company. 1. Issued capital stock in exchange for cash contributed by owners. 2. Purchased office supplies for cash. 3. Purchased office.
10 Views
View Answer
119.The following accounts for Carthage Enterprises, Inc. are listed randomly. Enter the number associated with each transaction to identify the accounts that would be used in the journal entry for each transaction given below. 1.Accounts payable9.Income taxes payable 2.Accounts receivable10.Prepaid expenses 3.Supplies11.Operating expenses 4.Building12.Prepaid insurance 5.Cash13.Retained earnings 6.Common stock14.Service revenue 7.Dividends15.Unearned revenue 8.Income tax expense TransactionJournal Entry DebitCredit Ex.Service.
7 Views
View Answer
121.The following information has been provided by Flatiron Company for the year ended December 31, 2016: Net income was $71,000; Income tax expense was $47,000; Dividends declared and paid totaled $7,500; Interest expense was $8,700; Loss on sale of plant assets was $15,000; Operating expenses for rent, wages, and insurance totaled $91,000; Cash collected from customers was.
4 Views
View Answer
98.Which of the following transactions would result in a decrease in the current ratio?   A. Collection of cash from an account receivable. B. Selling shares of stock to stockholders in exchange for cash. C. Purchasing a delivery vehicle by signing a long-term note payable. D. Purchasing land by paying cash. 99.Which of the following account balances would not be.
9 Views
View Answer
11.According to the expense recognition principle, wages expense is recognized on the income statement when the wages are paid rather than when the employee provides the work. 12.A gain resulting from the sale of buildings and equipment is not reported as operating income on the income statement. 13.Under accrual accounting,.
8 Views
View Answer
120.On December 31, 2016, Madison Company prepared an income statement and a balance sheet. In preparing the adjusting entries at year-end, Madison failed to record the adjusting entry for wages earned by employees, but not yet paid, amounting to $5,000 for the last four days of the year. The income.
9 Views
View Answer
Multiple Choice Questions 30.Which of the following is a false statement about the unadjusted trial balance?  A. It is not a financial statement for external reporting purposes. B. It provides data in a convenient form for preparing the adjusting entries and financial statements. C. It provides a check of the equality.
8 Views
View Answer
138.The Smith Corporation has provided the following information: Cash dividend payments were $25,000. Long-term investments were sold for $79,000 cash. A building costing $198,000 was purchased using $19,800 cash, and the balance was financed with a mortgage note payable. Stock was issued to stockholders in exchange for $110,000 cash. A.
14 Views
View Answer

Can't find what you're looking for ?

Ask our exprts a study questions, on us.
Get free Homework Help*