Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

problem: Which of the following statements about accrual basis accounting is true?

a) Accrual basis accounting is used only by small hospitality businesses.
b) Accrual basis accounting is reflected on the statement of cash flows.
c) Accrual basis accounting generally requires that several adjusting entries be recorded at the end of the accounting period.
d) Accrual basis accounting allows a business to show greater profits than cash basis accounting.

problem: A meeting planner made a deposit with a hotel to reserve exhibit space and the hotel has hosted the meeting. Now that the meeting has taken place, accountants should make an adjustment:

a) To record liabilities and expenses not previously recorded.
b) To record assets and revenues not previously provided.
c) In which previously recorded liabilities become revenue.
d) In which previously recorded assets become expenses.

problem: Which of the following is an ex of an accounting adjustment in which previously recorded assets become expenses?

a) Prepaid Insurance decreases and Insurance Expense decreases.
b) Prepaid Rent decreases and Rent Expense increases.
c) Utilities Payable increases and Utilities Expense increases.
d) Depreciation Expense increases and Accumulated Depreciation, Building increases.

problem: Which of the following adjustments is an ex of an accrual adjustment?

a) A liability/expense adjustment involving utility expenses
b) An asset/expense adjustment involving depreciation
c) A liability/revenue adjustment involving unearned revenues
d) An asset/expense adjustment involving insurance

problem: Accounts that record accumulated depreciation are shown on the:

a) Balance sheet as deductions from assets.
b) Income statement as deductions from liabilities.
c) Statement of cash flows as revenue.
d) Income statement as increases to expenses.

problem: James Bell plans to stay at the Michaels Motel for one month, and he prepays his room charges. Bell arrives and begins his stay on January 21. To account for Bell's prepayment, at the end of January (the end of the accounting period) the motel accountant should:

a) Debit Unearned Room Revenue and credit Room Revenue.
b) Credit Room Revenue and debit Cash.
c) Credit Accounts Receivable and debit Cash.
d) Debit Unearned Room Revenue and credit Cash.

problem: Accounting adjustments to account for unpaid wages would:

a) Debit Wage Expense and credit Accrued Wages Payable.
b) Credit both Wage Expense and Cash.
c) Credit Wage Expense and debit Accrued Wages Payable.
d) Debit both Wage Expense and Accrued Wages Payable.

problem: Telephone service costs the Eggleston Motor Hotel $250 per week. The business pays its phone service bill on the fifteenth day of each month, but it prepares its financial statements at the end of each month. Which of the following types of adjustments is required to ensure the accuracy of the Eggleston Motor Hotel's financial statements?

a) A liability/expense adjustment
b) An asset/expense adjustment
c) A liability/revenue adjustment
d) An asset/revenue adjustment

problem: Jaime failed to make adjusting entries to account for the use of prepaid insurance for his hotel. This mistake affects which of the following financial statements?

a) The balance sheet
b) The income statement   
c) a and b
d) The statement of cash flows

problem: If an accountant fails to make adjusting entries for utility service payments that have not yet been made:

a) Assets will be understated.
b) Gross revenue will be overstated.
c) Expenses will be understated.
d) Liabilities will be overstated.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M9118

Have any Question? 


Related Questions in Financial Accounting

The finance or accounting director has asked you to report

The finance or accounting director has asked you to report on the funds and financial status of your government entity (pretend he or she is your boss). Your boss will present the information to various users, so current ...

1 distinguish groupthink with managing agreement how are

1. Distinguish groupthink with managing agreement. How are these two concepts? similar? 2. Give multiple examples of the advantages and disadvantages associated with? cross-functional teams.

Infrastructure of homeland security hmls 4081 i choose the

Infrastructure of Homeland Security (HMLS 408) 1. I choose The Department Of Energy 2. Parts I and II are to be submitted as one submission, in the form of a continuous document. Make sure to delineate/identify part I an ...

Financecarefully work through the analysis of the companys

Finance Carefully work through the analysis of the company's short term financial situation. You will see that the company will be in a negative cash situation three quarters from now. As an adviser to the company you ar ...

Question 1the buck store is considering a project that will

Question 1 The Buck Store is considering a project that will require additional inventory of $216,000 and will increase accounts payable by $181,000. Accounts receivable are currently $525,000 and are expected to increas ...

Assignemntinstructions for accessing public company

Assignemnt Instructions for Accessing Public Company Financial Statements Accessing through SEC website 1. Start by going to www.sec.gov. 2. Under the ‘Filings' Menu, select ‘Company Filings Search' 3. Type in the Compan ...

Read harvard business reviews in search of a second act

Read Harvard Business Review's "In Search of a Second Act" case study. You can search for it in Business Source Complete (EBSCO) or use the see "How to find an article" in the Course Information tab. Two authors gave the ...

Assignment non florida fte case problemin the state of xxx

Assignment: Non Florida FTE Case Problem In the State of XXX, funding of public education is handled through a Foundation program. The state funds a student at a weighted FTE value of $3,150. Based on a local school dist ...

Cindy and glenn are married taxpayers who file a joint

Cindy and Glenn are married taxpayers who file a joint return. Both Cindy and Glenn work. During 2014, they had three young children for whom they paid $10,000 of qualifying child care expenses. What is the maximum and m ...

Cnsider the following optimization problemmax x1

Consider the following optimization problem: Max: X1 + X2 Subject to: -4 X1 + 4 X2 -8 X1 + 10 X2 >= 15 X1, X2 > 0 Part a: What is the optimal solution to the problem? Part b: Now suppose that X1 and X2 must be integers. ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro