Recording an adjusting entry to recognize using supplies causes Group of answer choices A. a decrease in assets and an increase in expenses. B. an increase in liabilities and expenses. C. an increase in assets and a decrease in expenses. D. an increase in assets and expenses.
Q: your
A: Adjusting entries Adjusting entries are required in order to accurately record things that were…
Q: End of period adjusting entries are considered important due to which of the following? A.All the…
A: Adjusting entries are required at the end of each fiscal period to align the revenues and expenses…
Q: What adjusting journal entry is needed to record depreciation expense for the period? Group of…
A: Adjusting entries are prepared at the end of the accounting period in order to ensure the accrual…
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A: Assets = Liabilities + Equity This equation is made on the basis of double entry system. Balance…
Q: Accounts Requiring Adjustment Indicate with a Yes or No whether or not each of the following…
A: Adjusting journal entry records those financial transactions which requires some adjustment at the…
Q: Which of the following transactions would not be recorded in the general journal? a.Adjusting entry…
A: General journal is a subsidiary journal that records all the transactions associated with the…
Q: Adjusting entries are needed to correctly measure the ________. A. net income (loss) on the…
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…
Q: How will the following adjusting journal entry affect the accounting equation? Unearned…
A: Meaning of Unearned Subscriptions:- Unearned Income or deferred income is business financial gain…
Q: Adjusting entries are made to ensure that:
A: Adjusting entries are made inorder to comply with accrual basis of accounting Under Accrual basis…
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A: Rules of Debit and Credit: Following rules are followed for debiting and crediting different…
Q: Which of the following is created by the adjusting entry to recognize interest expense incurred but…
A: Adjusting entries are to be reported at the year end to make adjustments to certain accounts.
Q: 8. Supplies are recorded as assets when purchased. Therefore, the credit to supplies in the…
A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year,…
Q: If the effect of the credit portion of an adjusting entry is to increase the balance of a revenue…
A: Adjusting entries are those entries which are passed to reflect the given adjustments.
Q: If the advance payment of an expense was initially recorded in an expense account, the adjusting…
A: Whenever transactions are recorded relating to an expense, any advance payment for the future period…
Q: Expenses paid and recorded as assets before they are used are called Select one: a. interim…
A: Expenses incurred in the interim period of an aggregate expense. It is known as interim expense.…
Q: Indicate the impact of the following adjusting entries on Revenues/Expenses/Assets/Liabilities. Use…
A: Assets: Assets are the resources of an organization. They are used in the business operations to…
Q: Which of the following would most likely lead to an accrued adjusting entry? A. Interest revenue…
A: Accrued adjusting entry is made when expense is accrued but not paid or revenue is earned but not…
Q: Which of the following accounts would normally not be affected by an adjusting entry? Group of…
A: The purpose of recording an adjusting journal entry is to record the unrecognized revenues and…
Q: Prior to the adjusting process, accrued expenses have Select one: a. been incurred but not yet paid…
A: Accrued expenses: The expenses which are occurred but not recorded in books. Even cash is not paid…
Q: 1. Which of the following accounts could appear in an adjusting entry, closing entry and reversing…
A: Hey there since you have posted multiple questions, we can answer only first question for you,…
Q: Prepare an adjusted trial balance from the adjusted account balances; solve for the one missing…
A: Dividends (assume accounts have normal balances). Equipment was recently purchased, so there is…
Q: Multiple choice: 1. Which if the following us correct concerning a T account? A. The left side is…
A: The T-accounts are prepared with posting of journal entries to specific accounts.
Q: Indicate the impact on the income statement and balance sheet if the following adjusting entries…
A: Not recording supplies expenses overstated the revenue, assets, and owners equity and understated…
Q: Choose the correct answer: Which of the following is equal to the SFP? A. Unadjusted trial…
A: Abbreviations used in the Question : SFP means Statement of Financial Position of Balance Sheet SCI…
Q: Which of the following is not accomplished by an adjusting entry? A. Updating liability and asset…
A: Adjusting entries are prepared to ensure the financial statement is following the accrual base…
Q: Indicate the impact on the income statement and balance sheet if following adjusting entries were…
A: an attorney has earned 1/2 of a retainer fee that was received and recorded last month. no…
Q: Effect of Omitting Adjusting Entry The adjusting entry for accrued fees was omitted at the end of…
A: It occurs when a particular expense or income or any other financial statement item is being…
Q: An end-of-period adjusting entry that debits Unearned Revenue most likely will credit…… Select one:…
A: The unearned revenue is the revenue that is not earned but the cash for the same is received in…
Q: Type of Adjustment Classify the following items as (1) prepaid expense, (2) unearned revenue, (3)…
A: INTRODUCTION Adjusting entries are those entries which are prepared are at the end of accounting…
Q: As prepaid expenses expire with the passage of time, the correct adjusting entry will be a O debit…
A: A prepaid expense is an expense which is paid for more than one accounting period.
Q: A change in depreciation method is a______. Select one: a. change in accounting standard b. change…
A: A change in accounting policy may be necessary to enhance the relevance and reliability of…
Q: If the adjustment for prepaid expenses is not recorded a.assets will be understated. b.net income…
A: Solution: prepaid expenses are those expenses which have not been incurred but have been paid in…
Q: Determine the effect or recording each of the six types of adjusting entries on the accounting…
A: Adjusting entries are prepared to maintain the accrual base accounting system. These are prepared at…
Q: Multiple choice: 1. Which of the following is most likely considered an adjusting entry? A. The…
A: The accounting is a process to identify the business transactions, record the transactions and…
Q: An adjusting entry to recognize accrued salaries payable would cause which of the following? Group…
A: Adjusting entries are prepared at the end of the accounting period. It prepares to ensure the…
Q: If the effect of the credit portion of an adjusting entry is to increase the balance of a liability…
A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to…
Q: Adjusting entries are sorted into two groups, accruals and deferrals. What is the classification…
A: As per the accrual accounting principle, each business transaction should be recorded in the period…
Q: How will the following adjusting journal entry affect the accounting equation? Unearned…
A: An unearned subscription is considered a liabilities and debit unearned revenue indicates a decrease…
Q: FIRST STATEMENT: The adjusting entry to allocate part of the cost of a one-year fire insurance…
A: First statement is false and second statement is true
Q: An adjusting entry in relation to unearned revenues will: а. increase total liabilities. b. increase…
A: The Unearned revenue is the revenue received in cash in advance but not earned yet by the business.
Q: Prepaid rent should be ________ and rent expense should be ________ for rent incurred during the…
A: Prepaid rent is rent paid in advance. As rent is an expense prepaid rent is a type of prepaid…
Q: A company purchased supplies for cash which will be consumed during the future months. Which of the…
A: In the given question both supplies and cash are assets. As supplies are purchased for cash there is…
Q: entry (debit or credit) would you make to: (a) increase revenue (b) decrease in expense, (c) record…
A: The normal balance represents that the balance of an account would be decreased. The normal balance…
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- Identify which type of adjustment is indicated by these transactions. Choose accrued revenue, accrued expense, deferred revenue, or deferred expense. A. fees earned and billed, but not collected B. recorded depreciation expense C. fees collected in advance of services D. salaries owed but not yet paid E. property rentals costs, prepaid for future months F. inventory purchased for cashIdentify which type of adjustment is indicated by these transactions. Choose accrued revenue, accrued expense, deferred revenue, or deferred expense. A. rent paid in advance for use of property B. cash received in advance for future services C. supplies inventory purchased D. fees earned but not yet collectedWhat two accounts are affected by each of these adjustments? A. billed customers for services provided B. adjusted prepaid insurance to correct C. recorded depreciation expense D. recorded unpaid utility bill E. adjusted supplies inventory to correct
- Identify which type of adjustment is associated with this account, and what the other account is in the adjustment. Choose accrued revenue, accrued expense, deferred revenue, or deferred expense. A. Salaries Payable B. Interest Receivable C. Unearned Fee Revenue D. Prepaid RentBrief Exercise 3-30 Identification of Adjusting Entries Examine the following accounts. Prepaid Insurance Inventory Interest Payable Unearned Service Revenue Accumulated Depreciation Required: CONCEPTUAL CONNECTION Identify and explain why each account may or may not require adjustment.If adjusting entries include these listed accounts, what other account must be in that entry as well? (A) Depreciation expense; (B) Unearned Service Revenue; (C) Prepaid Insurance; (D) Interest Payable.
- Prepare an adjusted trial balance from the adjusted account balances; solve for the one missing account balance: Dividends (assume accounts have normal balances). Equipment was recently purchased, so there is neither depreciation expense nor accumulated depreciation.Read each definition below and write the number of the definition in the blank beside the appropriate term. The quiz solutions appear at the end of the chapter. Recognition Historical cost Current value Cash basis Accrual basis Revenues Revenue recognition principle Matching principle Expenses Adjusting entries Straight-line method Contra account Deferral Deferred expense Deferred revenue Accrual Accrued liability Accrued asset Accounting cycle Work sheet Real accounts Nominal accounts Closing entries Interim statements A device used at the end of the period to gather the information needed to prepare financial statements without actually recording and posting adjusting entries. Inflows of assets or settlements of liabilities from delivering or producing goods, rendering services, or conducting other activities. Journal entries made at the end of a period by a company using the accrual basis of accounting. Journal entries made at the end of the period to return the balance in all nominal accounts to zero and transfer the net income or loss and the dividends to Retained Earnings. A liability resulting from the receipt of cash before the recognition of revenue. The name given to balance sheet accounts because they are permanent and are not closed at the end of the period. An asset resulting from the recognition of a revenue before the receipt of cash. The amount of cash or its equivalent that could be received by selling an asset currently. The assignment of an equal amount of depreciation to each period. Cash has been paid or received but expense or revenue has not yet been recognized. A system of accounting in which revenues are recognized when a performance obligation is satisfied and expenses are recognized when incurred. Cash has not yet been paid or received but expense has been incurred or revenue recognized. Financial statements prepared monthly, quarterly, or at other intervals less than a year in duration. Revenues are recognized in the income statement when a performance obligation is satisfied. The process of recording an item in the financial statements as an asset, a liability, a revenue, an expense, or the like. An asset resulting from the payment of cash before the incurrence of expense. The name given to revenue, expense, and dividend accounts because they are temporary and are closed at the end of the period. A system of accounting in which revenues are recognized when cash is received and expenses are recognized when cash is paid. A liability resulting from the recognition of an expense before the payment of cash. The association of revenue of a period with all of the costs necessary to generate that revenue. An account with a balance that is opposite that of a related account. The amount paid for an asset and used as a basis for recognizing it on the balance sheet and carrying it on later balance sheets. Outflows of assets or incurrences of liabilities resulting from delivering goods, rendering services, or carrying out other activities. A series of steps performed each period and culminating with the preparation of a set of financial statements.An adjusting entry to recognize accrued salaries payable would cause which of the following? Group of answer choices A. An increase in expenses and liabilities. B. A decrease in liabilities and an increase in expenses. C. A decrease in assets and liabilities. D. An increase in revenues and liabilities.
- Adjusting entries are sorted into two groups, accruals and deferrals. What is the classification term for current assets that are paid for in advance like office supplies and prepaid insurance that will be used in the business as time passes? This is Group of answer choices unearned revenue accrued expenses prepaid expenses accrued revenueWhat is the impact of prepaid expenses before year end adjusting entries. The answer is A . Understate assets and overstate expenses . B . Overstate liabilities and understate expenses. C. Overstate assets and understate expenses . D. Understate liabilities and overstate expenses.An adjusting entry to recognize accrued interest payable would cause which of the following? Group of answer choices A. An increase in expenses and liabilities. B. A decrease in liabilities and an increase in expenses. C. A decrease in assets and liabilities. D. An increase in revenues and liabilities
