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What will be the result if no adjusting entry is made to record revenue earned during the

What will be the result if no adjusting entry is made to record revenue earned during the

What will be the result if no adjusting entry is made to record revenue earned during the current period when the cash was received in the last accounting period?

A) The assets will be understated.

B)  The liabilities will be understated.

C)  The liabilities will be overstated.

D)  The assets will be overstated.

32) What effect does an accrued expense adjustment have on the financial statements?

A) The adjustment increases expenses and decreases assets.

B) The adjustment decreases expenses and increases liabilities.

C) The adjustment increases expenses and increases liabilities.

D) The adjustment increases expenses and increases net income.

33) On June 1, 2011, Destiny Ltd. received $3,600 for services to be performed evenly over the next twelve months. The adjusting entry on December 31, 2011, would include a:

A) debit to Cash for $3,600

B) debit to Service Revenue for $1,500

C) debit to Unearned Service Revenue for $1,500

D) debit to Unearned Service Revenue for $2,100

34) What effect does an accrued revenue adjustment have on a company's net income?

A) The adjustment increases net income for the period.

B) The adjustment decreases net income for the period.

C) The adjustment has no effect on net income.

D) The effect of the adjustment cannot be determined with the information given.

35) An adjustment is made for an expense incurred prior to its payment. The adjustment is called a(n):

A) accrued expense

B) prepaid expense

C) unearned expense

D) accrued asset

36) Allocating the cost of long-lived tangible assets used in the operations of a business is referred to as:

A) depreciation

B) a deferral

C) an accrual

D) using up the asset

37) Unearned Revenue is a(n):

A) revenue account

B) expense account

C) asset account

D) liability account

38) What is the liability called that arises from an expense that the business has incurred but has not yet paid?

A) It is known as an unearned expense.

B) It is called a deferred expense.

C) It is called a prepaid expense.

D) It is referred to as an accrued expense.

39) The adjusting entry for accrued revenue always involves a:

A) debit to a revenue account and a credit to an asset account

B) debit to a liability account and a credit to an asset account

C) debit to an asset account and a credit to a liability account

D) debit to an asset account and a credit to a revenue account

40) The adjusting entry for a prepaid expense always involves a(n):

A) liability account and a revenue account

B) expense account and a liability account

C) asset account and a liability account

Tripti 07-Dec-2019

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