Please check answers as well
A) Deferred (Prepaid) Expense ) Accrued Expense A) Decreases Expenses on the Income Statement C) Increases Assets on the Balance Sheet D) Increases Liabilities on the Balance Sheet E) Decreases Equity on the Balance Sheet entry to recognize cash recelived for services that have not yet been performed increases Expenses on the Income Statement C) Decreases Revenues on the income Statement D) Increases Liabilities on the Balance Sheet E) Decreases Liabilties on the Balance Sheet 11) The accountant for David Guetta's Dangerous Corporation failed to make an adjusting entry for a job that the company had started but for which it had not yet been paid. This error results in A) Assets being overstated, Equity being overstated, and Revenue being overstated B) Assets being understated, Equity being understated, and Revenue being understated C) Liabilities being overstated, Equity being overstated, and Revenue being overstated D) Liabilities being overstated, Equity being understated, and Revenue being understated E) Liabilities being understated, Equity being overstated, and Expenses being overstated 12) The step in the accounting cycle immediately following adjusting entries is: Analysis of source documents Preparation of the financial statements Preparation of the adjusted trial balance D) E) Recording of closing entries Financial statement analysis A) B) 3) Temporary (nominal) accounts must be closed at the end of each reporting period. Which of the ollowing is a list of accounts that are all TEMPORARY? A) Rent Expense, Depreciation Expense, Accumulated Depreciation B) Supplies, Supplies Expense, Service Revenue C) Service Revenue, Salaries Expense, Retained Earnings D) Supplies Expense, Rent Expense, Service Revenue E) Cash, Accounts Receivable, Equipment 14) Which of the following is a true statement regarding permanent (real) accounts? A) All revenue, expense, and equity accounts are permanent accounts Sheet Permanent accounts are reported on the Income Statement and Balance B) C) The ending balance from Year 1 becomes the beginning balance for Year 2 D) Examples include Cash, Accounts Receivable, and Service Revenue E) Permanent accounts are not affected by changes in temporary (nominal) accounts 15) To calculate the book or carrying value of a fixed asset: A) The salvage value is subtracted from the original cost 8) The salvage value is subtracted from the current fair market value C) The original cost of the asset is subtracted from the current fair market value D) Accumulat E) Accumulated Depreciation is subtracted from the original cost ted Depreciation is subtracted from the fair market value
