FINANCIAL ACCOUNTING W/ ACCESS
9th Edition
ISBN: 9781119644392
Author: Kimmel
Publisher: WILEY C
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Textbook Question
Chapter 4, Problem 20Q
For each of the following items before adjustment, indicate the type of
If an item could result in more than one type of adjusting entry, indicate each of the types.
- (a) Assets are understated.
- (b) Liabilities are overstated.
- (c) Liabilities are understated.
- (d) Expenses are understated.
- (e) Assets are overstated.
- (f) Revenue is understated.
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Students have asked these similar questions
, Which of the following adjusting entries cannot be reversed?
a. An adjusting entry to accrue an expense
b. An adjusting entry to accrue an income
c. An adjusting entry to record the expired portion of a
prepayment of an item of expense
d. An adjusting entry to record the unearned portion of an
advanced collection of an item of income
Failure to prepare an adjusting entry at the end of the period to record an accured expense would casue:
(Choose all of the correct ones)
A. An understatement of libailities
B. An overstatement of revenue
C. An understatement of expenses
D. An overstatement of net income
E. An overstatement of assets
Which of the following journals would correctly post an adjustment for deferred (prepaid)
income? Select one:
A. DR Income Account / CR Asset
B. DR Asset / CR Income Account
C. DR Income Account / CR Deferred Income
D. DR Deferred income / CR Income Account
Chapter 4 Solutions
FINANCIAL ACCOUNTING W/ ACCESS
Ch. 4 - Prob. 1QCh. 4 - Identify and stale two generally accepted...Ch. 4 - Prob. 4QCh. 4 - Prob. 5QCh. 4 - Prob. 6QCh. 4 - Why may the financial information in an unadjusted...Ch. 4 - Distinguish between the two categories of...Ch. 4 - What types of accounts does a company debit and...Ch. 4 - Prob. 10QCh. 4 - Prob. 11Q
Ch. 4 - Prob. 12QCh. 4 - What types of accounts are debited and credited in...Ch. 4 - Prob. 14QCh. 4 - Prob. 15QCh. 4 - Prob. 16QCh. 4 - A company fails to recognize an expense incurred...Ch. 4 - A company makes an accrued revenue adjusting entry...Ch. 4 - Prob. 19QCh. 4 - For each of the following items before adjustment,...Ch. 4 - One-half of the adjusting entry is given below....Ch. 4 - Prob. 22QCh. 4 - Prob. 23QCh. 4 - Prob. 24QCh. 4 - (a) What information do accrual-basis financial...Ch. 4 - What is the relationship, if any, between the...Ch. 4 - Identify the account(s) debited and credited in...Ch. 4 - Prob. 28QCh. 4 - Prob. 29QCh. 4 - What items are disclosed on a post-closing trial...Ch. 4 - Prob. 31QCh. 4 - Indicate, in the sequence in which they are made,...Ch. 4 - Identify, in the sequence in which they are...Ch. 4 - Prob. 34QCh. 4 - Prob. 35QCh. 4 - Prob. 36QCh. 4 - Prob. 37QCh. 4 - Prob. 4.2BECh. 4 - Prob. 4.3BECh. 4 - Prob. 4.4BECh. 4 - Prob. 4.5BECh. 4 - Prob. 4.6BECh. 4 - Prob. 4.10BECh. 4 - Prob. 4.12BECh. 4 - Prob. 4.15BECh. 4 - Prob. 4.16BECh. 4 - Prob. 4.17BECh. 4 - The required steps in the accounting cycle are...Ch. 4 - Prob. 4.1DIECh. 4 - Prob. 4.4aDIECh. 4 - Prob. 4.4bDIECh. 4 - The following independent situations require...Ch. 4 - These accounting concepts were discussed in this...Ch. 4 - Prob. 4.3ECh. 4 - Prob. 4.5ECh. 4 - Prob. 4.6ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Prob. 4.11ECh. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Prob. 4.24ECh. 4 - Prob. 4.2EYCTCh. 4 - Prob. 4.3EYCTCh. 4 - Prob. 4.4EYCTCh. 4 - Prob. 4.7EYCTCh. 4 - Prob. 4.8EYCTCh. 4 - Companies prepare balance sheets in order to know...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The Effect of Ignoring Adjusting Entries on Net Income For each of the following independent situations, determine whether the effect of ignoring the required adjusting entry will result in an understatement (U), will result in an overstatement (O), or will have no effect (NE) on net income for the period.arrow_forwardWhich of the following is not a type of adjusting entry? a. Depreciation of long-term physical assets b. Allocation of unearned revenue c. Correction of an error in the general journal d. Recording of accrued revenuearrow_forwardPlease explain what an Unearned Revenue account is and why an adjustment may be necessary for Unearned Revenue. Please provide an example of an adjusting entry for Unearned Revenue.arrow_forward
- CHOOSE FROM THE FOLLOWING ACCOUNTS FOR THE CORRECT ACCOUNT OF ADJUSTING ENTRIES: deferred revenue salesarrow_forwardWhich of the following items represents a deferral?A. Prepaid insuranceB. Wages payableC. Fees earnedD. Accumulated depreciationarrow_forwardFailure to prepare an adjusting entry at the end of the period to record an accrued expense would cause an overstatement of assets and an overstatement of liabilities. O an overstatement of expenses and an overstatement of liabilities. O net income to be understated. an understatement of expenses and an understatement of liabilities.arrow_forward
- Identify the consequences of not making adjustment entry for accrued expense. Select one: O a. Understatement of capital O b. Overstatement of expenses Oc. Understatement of liabilities O d. Overstatement of liabilities An adjusting entry for income received in advanced affects Select one: Oa assets and expenses O b. liabilities and income O c. liabilities and expenses O d. assets and income An adjusting entry for prepaid expenses affects Select one: Oa assets and expenses Ob. liabilities and assetsarrow_forwardIf an adjustment includes an entry to a payable or receivable account, which type of adjustment is it? a. Estimate b. Accruals c. Deferrals d. Provisionarrow_forwardWhich of the following accounts would normally not be affected by an adjusting entry? Group of answer choices A. Supplies B. Service Revenue C. Depreciation Expense D. Casharrow_forward
- Every adjusting entry involves the recognition of either revenue or an expensearrow_forwardFor each description of adjusting entry given below, indicate whether it relates to a deferred revenue, deferred expense, accrued revenue or accrued expense AND give an example of the adjusting entry. a. A debit to an asset and a credit to a revenue. b. A debit to an expense and a credit to a liability. c. A debit to a liability and a credit to a revenue. Type of Transaction Example of adjusting entryarrow_forwardReversing entries are used in income collected in advance when the | point adjusting entry has a Debit to an asset Debit to a Liabilty credit to Expense Credit to Incomearrow_forward
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