At May 31,2020, before end of adjustments, ABC company's Insurance Expense account had a balance of $1450 and Prepared Insurance Account had a balance of $3800. $3000 worth of Prepaid Insurance expired. What is the year end balance at Insurance Expense account at the end of the year? *

1 point

$4430

$4450

$5250

$6800

XYZ Corporations is involved in car washing services. On 1 August the company provides services to Mr. George Kremer. Mr. Kremer comes to pick up the car on 2nd of August, informs that he will make the payment on 3rd of August but he finally makes payment on 5th of August. When should XYZ record the revenue earned? *

1 point

1st of August

2nd of August

3rd of August

5th of August

ABC Limited on 15th of May 2019, received $50000 to provide consultation services to S&S associates during the period 1st of August,2019 to 30th of November,2019. What will be the adjusting entries at the end of its reporting period? *

1 point

Cash Dr $50000 ; Service Revenues Cr $50000

Cash Dr $50000; Unearned Service Revenues Cr $50000

Service Revenues Dr $50000 ; Unearned Service Revenues Cr $50000

Unearned Service Revenues Dr $50000 ; Service Revenues Cr $50000

If an expense is accrued at the end of the accounting period it is both an expense and a ....................?

0 points

Asset

Liability

Revenue

Operating Income

When are adjusting entries made: *

1 point

Monthly

When financial statements are prepared

Semiannually

Yearly

Which is the following is according to the Generally Accepted Accounting Principles (GAAP)? *

1 point

Cash Basis Accounting

Accruals Basis Accounting

Both Cash and Accruals basis Accounting

None of the above

The difference between fixed asset and its accumulated depreciation is called?

0 points

Fair value

Book value

Net Value

Contra asset

Accumulated Depreciation account is? *

1 point

Contra liability account

Contra expense account

Offset total asset value in the balance sheet

Has normal credit balance account

In a worksheet, if there is a net loss it would appear where? *

1 point

credit column of income statement

debit column of income statement

credit column of balance sheet

credit column adjusted trail balance

If accrued expense it not accounted in the correct fiscal year. This will lead to:

1 point

Overstatement of liabilities; Understatement of net income

Overstatement of liabilities; Overstatement of net income

Understatement of liabilities; Overstatement of net income

Understatement of liabilities; Understatement of net income

On October 1st,2020, $24000 was paid for two year insurance policy. What will be the insurance expense accounted at the year ended 31st December,2020? *

1 point

$3000

$35000

$3600

$4000

XYZ Inc bought $6500 worth of laundry supplies on 2nd of March. On 31st of March, laundry supplies physical count shows a balance of $1500 on hand. The adjusting entries would be: *

1 point

Laundry Supplies DR $ 1500 ; Laundry Supplies Expense Cr $1500

Laundry Supplies DR $5000 ; Laundry Supplies Expense Cr $500

Laundry Supplies Expense DR $1500 ; Laundry Supplies Cr $ 1500

Laundry Supplies Expense DR $5000 ; Laundry Supplies Cr $500