Which of the following would be recorded as an asset

This preview shows page 1 - 3 out of 5 pages.

7.Which of the following would be recorded as an asset? A. Prepaid expenses B. Accrued expenses
C. Revenue received in advance D. None of the above ANS: A PTS: 1 TOP: Conceptual foundation of accrual accounting 8.At the end of the financial year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following statements is true? PTS: 1 TOP: Conceptual foundation of accrual accounting
9.What is the correct adjusting entry at 30 June, the end of the financial year, based on a Supplies account balance, before adjustment, of $5 200 and supplies inventory, on 30 June, of $2 200? PTS: 1 TOP: Accrual accounting adjustments
10.The Supplies account has a balance of $750 at the beginning of the year and was debited during the year for $2 800, representing the total of supplies purchased during the year. If $950 of supplies are on hand at the end of the year, what is the supplies expense to be reported on the profit and loss statement for the year? PTS: 1 TOP: Accrual accounting adjustments
11.A payment for insurance on 1 June for $120 000, covering the period 1 June 2018 to 31 May 2019, was recorded as a prepayment. No adjusting entry was made at 30 June 2019. As a result: A. profit and total assets were overstated by $10 000. B. profit and total assets were understated by $110 000. C. profit was overstated by $10 000 and assets understated by $10 000. D. None of the above ANS: A PTS: 1 TOP: Accrual accounting adjustments

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture