acct exam 2 - ACC 2301 Exam 2 answers, Spring 2011, Dr....

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC 2301 Exam 2 answers, Spring 2011, Dr. Said 1.The revenue recognition principle dictates that revenue should be recognized in the accounting records a. when cash is received. b. when it is earned . c. at the end of the month. d. in the period that income taxes are paid. 2.A candy factory's employees work overtime to finish an order that is sold on February 28. The office sends a statement to the customer in early March and payment is received by mid-March. The overtime wages should be expensed in a. February. b. March. c. the period when the workers receive their checks. d. either in February or March depending on when the pay period ends. 3.An adjusting entry a. affects two balance sheet accounts. b. affects two income statement accounts. c. affects a balance sheet account and an income statement account. d. is always a compound entry. 4.Adjusting entries are a. not necessary if the accounting system is operating properly. b. usually required before financial statements are prepared. c. made whenever management desires to change an account balance. d. made to balance sheet accounts only. 5.Expenses incurred but not yet paid or recorded are called a. prepaid expenses. b. accrued expenses. c. interim expenses. d. unearned expenses. 6.Accrued revenues are a. received and recorded as liabilities before they are earned. b. earned and recorded as liabilities before they are received. c. earned but not yet received or recorded. d. earned and already received and recorded. 7.Prepaid expenses are a. paid and recorded in an asset account before they are used or consumed. b. paid and recorded in an asset account after they are used or consumed. c. incurred but not yet paid or recorded. d. incurred and already paid or recorded. 8.A liability-revenue relationship exists with a. prepaid expense adjusting entries. b. accrued expense adjusting entries. c. unearned revenue adjusting entries. d. accrued revenue adjusting entries. 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
9.Bee-In-The-Bonnet Company purchased office supplies costing $8,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $3,200 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be a. Debit Office Supplies Expense, $3,200; Credit Office Supplies, $3,200. b. Debit Office Supplies, $4,800; Credit Office Supplies Expense, $4,800. c. Debit Office Supplies Expense, $4,800; Credit Office Supplies, $4,800. d. Debit Office Supplies, $3,200; Credit Office Supplies Expense, $3,200. 10.If company fails to make an adjusting entry for unearned revenues, the
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

acct exam 2 - ACC 2301 Exam 2 answers, Spring 2011, Dr....

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online