Six Months Three Months Multiple Choice Accountin

Six Months Three Months Multiple Choice Accountin

Six Months Three Months Multiple Choice Accountin

1.Metro Event Planning Services collects fees from its customers in advance. On January 1, 2019, the balance of its unearned revenue account was $5,000 (credit. During January and February, the company collected $2,000 and $700 as advance fees, respectively. During the two-month period, it performed services of $4,500 related to the deferred revenue. What is the balance in unearned revenue at the end of February?

Debit balance of $5,000

Credit balance of $5,000

Debit balance of $3,200

Credit balance of $3,200

Question 2

  1. Jupiter Company signed a one-year $36,000 note payable at 8% interest on March 1, 2019. How much interest expense must be accrued on May 31, 2019? (Round any intermediate calculations to two decimal places, and your final answer to the nearest whole number.)
    $2,880
    $1,080
    $720

    Question 3

    1. Anthony Delivery Service has a weekly payroll of $34,000. December 31 falls on Tuesday and Anthony will pay its employees the following Monday (January 6) for the previous full week. Assume that Anthony has a five-day workweek and has an unadjusted balance in Salaries Expense of $925,000 at December 31. What is the December 31 balance of Salaries Expense after adjusting entries are recorded and posted?

    $360

Question 4

  1. On January 1, 2017, the Accounts Receivable of Martha Company had a debit balance of $190,000. During January, the company provided services for $400,000 on account. The company collected $240,000 from its customers on account in January. What was the ending balance in the Accounts Receivable account at the end of January?
    $160,000
    $590,000
    $350,000
    $400,000

Question 5

  1. Which of the following statements is TRUE of accrual basis accounting?

Question 6

  1. ABC Tax Planning Service started business in January 2018. The company rented an office for $1,800 per month starting from January 1, 2018. On that day, ABC prepaid the rent through June 30. The company makes adjusting entries at the end of each month. What is the balance in the Prepaid Rent account as of April 30, 2018?

Question 7

  1. A business purchased equipment for $145,000 on January 1, 2019. The equipment will be depreciated over the five years of its estimated useful life using the straight-line depreciation method. The business records depreciation once a year on December 31. Which of the following is the adjusting entry required to record depreciation on the equipment for the year 2019? (Assume the residual value of the acquired equipment to be zero.)

Question 8

  1. If a company is using accrual basis accounting, when should it record revenue?

Question 9

  1. On September 1, 2018, Real Estate Professionals Company paid $5,000 in advance for an eight-month rental space covering the period of September 1, 2018 through April 30, 2019. The deferred expense was initially recorded as an asset. The company makes adjusting entries once a year at year-end. The adjusting entry on December 31, 2018 would include a __________.

Question 10

  1. When does a company account for revenue if it uses cash basis accounting?

Question 11

  1. Hudson Landscaping Service bought equipment for $10,800 on January 1, 2019. It has an estimated useful life of five years and zero residual value. Hudson uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of every month. As of June 30, 2019, the book value of this equipment shown on its balance sheet will be __________.

Question 12

  1. Mercury Company sells tickets in advance for its weekly productions and records the proceeds as Unearned Revenue. At the end of each month, the company makes an adjusting entry to account for the tickets used during the month (ticket revenue.) On March 1, the Unearned Revenue account had a credit balance of $5,000. During March, Mercury sold 500 tickets at $40 each, and 450 tickets were used during the month. What is the balance in Unearned Revenue at the end of March?

Question 13

  1. Which of the following accounting elements does the matching principle help to match?

Question 14

  1. The asset account, Office Supplies had a beginning balance of $5,700. During the accounting period, office supplies were purchased, on account, for $5,100. A physical count, on the last day of the accounting period, shows $2,000 of office supplies on hand. What is the amount of Supplies Expense for the accounting period?

Question 15

  1. Accumulated depreciation is a(n) __________ account and carries a normal __________ balance.

Question 16

  1. Which of the following is considered a fiscal year?

Question 17

  1. Advance cash payments of future expenses are called __________.

Question 18

  1. Princeton Financial Services Company purchased computers that are to be used in its consulting services. Based on the matching principle, what account, other than Computers, should appear on the balance sheet as of December 31 of that same year?

Question 19

  1. Which of the following accounting terms assumes that a business’s activities can be divided into small segments and that financial statements can be prepared for specific periods of time?

Question 20

  1. The adjusted trial balance shows __________.