C. Assets = Liabilities + Paid-in Capital + Beginning Retained Salaries + Revenues - Expenses - Dividends
2. In the seller"s records, the sale of merchandise on account would: A. rise assets and also increase expenses.B. boost assets and decrease liabilities.C. rise assets and also rise paid-in capital.D. rise assets and decrease profits.
You are watching: The effect of an adjustment on the financial statements is usually to:
3. In an advertiser"s records, a newspaper ad submitted and publimelted this week with the agreement to pay for it following week would: A. decrease assets and also decrease costs.B. increase liabilities and also boost prices.C. decrease assets and also boost revenue.D. boost assets and decrease liabilities.
4. In the buyer"s records, the purchase of merchandise on account would: A. rise assets and boost costs.B. increase assets and also rise liabilities.C. increase liabilities and also increase paid-in resources.D. have no impact on total assets.
5. A newspaper ad submitted and publiburned this week, through the agreement to obtain passist for it following week would, in the newspaper"s records: A. increase assets and boost earnings.B. increase assets and decrease liabilities.C. boost assets and also boost expenses.D. have no effect on complete assets.
6. A debit enattempt will: A. decrease an asset account.B. boost a liability account.C. rise paid-in funding.D. boost an cost account.
7. A crmodify enattempt will: A. rise an asset account.B. increase a licapacity account.C. decrease paid-in capital.D. increase an cost account.
8. A credit enattempt will: A. constantly decrease the account balance.B. constantly boost the account balance.C. boost the balance of a revenue account.D. increase the balance of an price account.
9. A debit entry will: A. constantly decrease the account balance.B. constantly boost the account balance.C. rise the balance of a revenue account.D. boost the balance of an cost account.
10. An engineering consultant provided $300 of solutions to a client; the client paid $50 when the bill was submitted and also will pay the balance within a week. The consultant will certainly document this transactivity by:A. Option AB. Option BC. Option CD. Option D
To accrue $3,200 of employee salaries for the last week of February, the employer"s journal enattempt is:
12. Sage, Inc. has 20 employees who work Monday with Friday each week; each employee earns $100 per day and is passist eincredibly Friday. The end of the accountancy period is on a Wednesday. How a lot wperiods cost need to the firm accrue at the end of the period? A. $2,000B. $1,000C. $0D. $6,000
13. Which of the adhering to is not one of the 5 questions of transactivity analysis? A. What"s going on?B. Which accounts are affected?C. Is this an accrual?D. Does the balance sheet balance?E. Does my analysis make sense?
14. The effect of an adjustment is: A. to correct an enattempt that was not in balance.B. to boost the accuracy of the financial statements.C. to record transactions not formerly taped.D. to cshed the publications.
15. A journal enattempt recording an accrual: A. results in a much better corresponding of profits and prices.B. will involve a delittle bit or credit to cash.C. will certainly affect balance sheet accounts just.D. will certainly the majority of most likely encompass a delittle bit to a licapability account.
16. Wisdom Co. has a note payable to its bank. An adjustment is most likely to be forced on Wisdom"s publications at the finish of every month that the loan is exceptional to document the: A. amount of interemainder passist during the month.B. amount of total interemainder to be phelp as soon as the note is paid off.C. amount of principal payable at the maturity day of the note.D. accrued interemainder expense for the month.
Martin & Associates obtained $5,000 on April 1, 2013 at 8% interest via both principal and interemainder due on March 31, 2014.Which of the following journal entries should the firm usage to accrue interemainder at the finish of each month?
18. Martin & Associates borrowed $5,000 on April 1, 2013 at 8% interemainder via both principal and also interest due on March 31, 2014.How much have to be in the firm"s interemainder payable account at December 31, 2013? A. $300B. $400C. $0D. $333
Martin & Associates obtained $5,000 on April 1, 2013 at 8% interest with both principal and interest due on March 31, 2014.Which of the adhering to journal entries have to the firm use to document the payment of interest on March 31, 2014?
20. The accountant at Abco, Inc. made an adjusting entry at the end of February to accrue interest on a note receivable from a customer. The impact of this entry is to: A. decrease ROI for February.B. increase ROI for February.C. decrease functioning resources at February 28.D. decrease the acid-test proportion at February 28.
21. The audit concept/principle being used once an adjustment is made is usually: A. corresponding revenue and expense.B. consistency.C. original cost.D. materiality.
22. The Interemainder Receivable account for February confirmed transactions totaling $8,500 and an adjustment of $11,200. A. The transactions more than likely resulted from accruing interest earnings earned.B. The transactions were most likely entered on the credit side of the account.C. The adjustment was most likely for cash receipts of interemainder receivable accrued in prior months.D. The balance in the interest receivable account diminished $2,700.
23. The balance in the Wperiods Payable account boosted from $12,200 at the beginning of the month to $15,000 at the finish of the month. Wperiods accrued throughout the month totaled $61,000. A. Wages passist in the time of the month totaled $58,200.B. Wages phelp during the month totaled $64,800.C. Wages price for the month totaled $58,200.D. Weras cost for the month totaled $76,000.
When a firm purchases offers for usage in its organization, and also the price of the provides purchased is videotaped as an asset, the following adjustment to acknowledge the price of supplies used will certainly probably be required:
25. When a firm purchases provides for its business: A. the supplies account need to constantly be debited.B. the provides price account should always be debited.C. either the supplies account or the offers expense account have to be attributed.D. an adjustment will certainly most likely be compelled as supplies are supplied.
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26. The result of an adjustment on the financial statements is usually to: A. make the balance sheet balance.B. increase net income.C. boost the accuracy of both the balance sheet and income statement.D. match earnings and assets.
MyAccountingLab with Pearchild eText -- Instant Access -- for Financial Accounting9th EditionCharles T. Horngren