FNU ACG2003 2022 October Week 2 Quiz Latest

ACG2003 Principles of Accounting

Week 2 Quiz

Question 1Which of the following statements is NOT true about adjusting entries?

Adjusting entries are dated as of the last day of the period.

Adjusting entries are normally supported by an explanation.

Adjusting entries must be both journalized and posted.

 

Omission of adjusting entries will have over- or understatement impacts on the income statement but not the balance sheet.

Question 2Vertical analysis compares each item on a financial statement with:

a corresponding item on a different statement of the same year.

a total or key amount on the same statement.

an industry average.

a total or key amount on the financial statement of the previous period.

Question 3Cheng Company has one year in unearned rent on the books in the amount of $3,000. The money was received on December 1 in payment for a warehouse Cheng owns. What adjusting entry related to unearned rent should Cheng record on the books at year-end?

debit to Unearned Rent, $2,750; credit to Rent Revenue, $2,750

debit to Unearned Rent, $250; credit to Rent Revenue, $250

debit to Rent Revenue, $250; credit to Unearned Rent, $250

no entry required

Question 4The balance in Carlos Company's supplies account on December 31 is $3,000. If the supplies used during the year were $750, what is the entry to adjust the supplies account at the end of the year?

debit to Supplies, $2,250; credit to Supplies Expense, $2,250

debit to Supplies Expense, $750; credit to Supplies, $750

debit to Supplies, $250; credit to Supplies Expense, $250

debit to Supplies Expense, $750; credit to Accounts Payable, $750

Question 5Websavvy has a 5-day work week and pays weekly wages in the amount of $1,750. If December 31 falls on a Tuesday, what would be the adjusting entry to record the accrual of wages at year-end?

debit to Wages Expense, $350; credit to Wages Payable, $350

debit to Wages Payable, $350; credit to Wages Expense, $350

debit to Wages Expense, $700; credit to Wages Payable, $700

no entry required

Question 6An adjusting entry always affects:

at least one asset account and one liability account.

two different balance sheet accounts.

two different income statement accounts.

at least one income statement account and one balance sheet account.

Question 7Expense items that have been incurred but not yet recorded in the accounts are:

unearned revenues.

accrued expenses.

accrued revenues.

prepaid expenses.

Question 8Which statement about an adjusted trial balance is true?

An adjusted trial balance is completed after completing the income statement.

The purpose of an adjusted trial balance is to ensure that all adjusting entries have been recorded.

If the adjusted trial balance does not balance, then an error has been made.

If an adjusting entry is omitted, the adjusted trial balance will not balance.

Question 9The accounting concept that supports reporting revenues in the period in which they are earned is called the:

revenue recognition concept.

accounting period concept.

timing concept.

adjusting concept.

Question 10Unrecorded revenues that have been earned but for which cash has not yet been received are:

accrued expenses.

unearned revenues.

accrued revenues.

prepaid expenses.