Ch 3 - Answer interest expense an a credit to interest payable Q6 Which of the following is an example of a deferral Answer a commission collected

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Q1. The periodicity assumption recognizes that Answer: net income is an estimate Q2. Which of the following transactions is most likely not to result in an adjusting entry at the end of period? Answer: payment of this month’s ren t Q3. In July, a company pays three year’s insurance in advance. The December 31 adjusting entry is a debit to Answer: insurance expense and a credit to prepaid insurance Q4. Which of the following is a condition required by the SEC for the recognition of revenue? Answer: reasonable assurance of collection Q5. On December 9, A issues a 60-day promissory note to B. the December 31 adjusting entry for A is a debit to
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Unformatted text preview: Answer: interest expense an a credit to interest payable Q6. Which of the following is an example of a deferral? Answer: a commission collected in advance Q7. Which of the following is not a temporary account? Answer: accumulated depreciation – vehicles Q8. In the accounting cycle, which of the following is considered the output document or record? Answer: the journal Q9. When there is a net loss, the entry to close the income summary account is debit Answer: income summary and credit retained earnings Q10.The adjustment for estimated income taxes would include a Answer: credit to income taxes payable ....
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This note was uploaded on 06/18/2008 for the course ACCT 201 taught by Professor Amy during the Spring '08 term at Baltimore City.

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