FALL2 old exam - Accounting231ExamTwo,Fall2002 Dr.Klett

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

View Full Document Right Arrow Icon
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 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. 3. The primary difference between prepaid and accrued expenses is that prepaid expenses have a. been incurred and accrued expenses have not. b. not been paid and accrued expenses have. c. been recorded and accrued expenses have not. d. not been recorded and accrued expenses have. 4. If a resource has been consumed but a bill has not been received at the end of the accounting period, then a. an expense should be recorded when the bill is received. b. an expense should be recorded when the cash is paid out. c. an adjusting entry should be made recognizing the expense. d. it is optional whether to record the expense before the bill is received. 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 a. expenses to be overstated. b. net income to be overstated. c. liabilities to be understated.
Background image of page 1

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

View Full DocumentRight Arrow Icon
d. revenues to be understated. --Page 2 7. An adjusting entry would not include which of the following accounts? a. Cash b. Interest Receivable c. Property Tax Payable d. Unearned Revenue 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 a. Debit Rent Expense, $6,000; Credit Prepaid Rent, $1,000. b. Debit Prepaid Rent, $1,000; Credit Rent Expense, $1,000. c. Debit Rent Expense, $1,000; Credit Prepaid Rent, $1,000.
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 / 11

FALL2 old exam - Accounting231ExamTwo,Fall2002 Dr.Klett

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