Ask Question, Ask an Expert

+61-413 786 465

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

Accounting for decision makingquestion discuss the five key

Accounting for decision making. Question: Discuss the five key forces to consider when analyzing an industry. How do these forces impact the balanced scorecard? Reply to the discussion which are attached. Discussion: For ...

Need slides need a one page executive summarybelow is the

Need slides. Need a one page executive summary. Below is the scenario: "Hi again. I've got news about our client. "ExxonMobil is looking to increase revenue by 10 percent and possibly reduce costs. Need an executive summ ...

Chelsea is expected to pay an annual dividend of 126 a

Chelsea is expected to pay an annual dividend of $1.26 a share next year. The market price of the stock is $24.09 and the growth 2.6 percent. What is the cost of equity?

Listed below are selected account balances for pinnacle

Listed below are selected account balances for Pinnacle Corporation at December 31, Year 1 and Year 2.  Also available for you is selected information from the income statement for Pinnacle for the year ended December 31 ...

Finance final exam -answer the following questions based on

FINANCE Final Exam - Answer the following questions based on the course presentation, text, and any outside relevant sources. Use citations and show your work where applicable. 1. Strategic and Financial Planning a. Defi ...

Question 1 an organization owes pound300000 tax at 17x4 and

Question 1 . An organization owes £300,000 tax at 1.7.X4 and £450,000 at 30.6.X5. Its income statement for the year to 30.6.X5 includes a tax charge of £400,000. How much tax was actually paid in the year to 30.6.X5?

A review of the ledger of oriole company at december 31

A review of the ledger of Oriole Company at December 31, 2017, produces these data pertaining to the preparation of annual adjusting entries. 1. Prepaid Insurance $19,404. The company has separate insurance policies on i ...

In its first year of operations cullumber company

In its first year of operations, Cullumber Company recognized $31,800 in service revenue, $6,600 of which was on account and still outstanding at year-end. The remaining $25,200 was received in cash from customers. The c ...

Ha 3011 advanced financial accounting assignment

HA 3011 Advanced Financial Accounting Assignment - Assessment Task Part A - In an article entitled 'Unwieldy rules useless for investors' that appeared in the Australian Financial Review on 6 February 2012 (by Agnes King ...

What has been strides position on dividend payouts in the

What has been Strides' position on dividend payouts in the past (pattern, relationship with earnings, etc.)? What factors affected its dividend policy?

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As