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FALL2 old exam - ,Fall2002 Dr.Klett , 1 An a b c d YourName...

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Accounting 231 Exam Two, Fall 2002 Dr. Klett Put your multiple choice questions on the scantron, do the workout on the test.  Your Name _________________________ 1. An accounting time period that is one year in length is called a. a fiscal year. b. an interim period. c. the time period assumption. d. a reporting period. 2. The revenue recognition principle dictates that revenue should be recognized in the accounting records 3. The primary difference between prepaid and accrued expenses is that prepaid expenses have 4. If a resource has been consumed but a bill has not been received at the end of the accounting period, then 5. Reese Company purchased office supplies costing $4,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $1,600 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be a. Debit Office Supplies Expense, $1,600; Credit Office Supplies, $1,600. b. Debit Office Supplies, $2,400; Credit Office Supplies Expense, $2,400. c. Debit Office Supplies Expense, $2,400; Credit Office Supplies, $2,400. d. Debit Office Supplies, $1,600; Credit Office Supplies Expense, $1,600. 6. A law firm received $2,000 cash for legal services to be rendered in the future. The full amount was credited to the liability account Unearned Service Revenue. If the legal services have been rendered at the end of the accounting period and no adjusting entry is made, this would cause
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--Page 2 7. An adjusting entry would not include which of the following accounts? 8. On July 1 the Winter Shoe Store paid $6,000 to Ace Realty for 6 months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by the Winter Shoe Store is
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