act 2291 exam 2

act 2291 exam 2 - Question 1 0 out of 5 points A company...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Question 1 0 out of 5 points A company purchases a one-year insurance policy on June 1 for $1,260. The adjusting entry on December 31 is Answer Selected Answer: debit Insurance Expense, $525 and credit Prepaid Insurance, $525. Correct Answer: debit Insurance Expense, $735, and credit Prepaid Insurance, $735. Question 2 5 out of 5 points Accrued expenses are ordinarily reported on the balance sheet as Answer Selected Answer: liabilities
Background image of page 1

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

View Full DocumentRight Arrow Icon
Correct Answer: liabilities Question 3 5 out of 5 points By matching revenues and expenses in the same period in which they incur Answer Selected Answer: net income or loss will be properly reported on the income statement Correct Answer: net income or loss will be properly reported on the income statement Question 4 5 out of 5 points
Background image of page 2
Supplies are recorded as assets when purchased. Therefore, the credit to supplies in the adjusting entry is for the amount of supplies Answer Selected Answer: used Correct Answer: used Question 5 5 out of 5 points The balance in the prepaid insurance account before adjustment at the end of the year is $12,000. If the additional data for the adjusting entry is (1) "the amount of insurance expired during the year is $9,500," as compared to additional data stating (2) "the amount of unexpired insurance applicable to a future period is $2,500," for the adjusting entry: Answer Selected Answer: the accounts and amounts would be the same for both (1) and (2) Correct Answer: the accounts and amounts would be the same for both (1) and (2)
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 13

act 2291 exam 2 - Question 1 0 out of 5 points A company...

This preview shows document pages 1 - 4. Sign up to view the full document.

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