Which of the following is NOT an accounting method that would increase the current ratio (currently 2:1)? a. Not adjusting prepaid insurance at year end b. Recognising unearned revenue as revenue c. Not recognising accrued wages d. Changing the method of depreciation
Q: 6. Which of the following is least likely to be an adjusting entry a. The entry to accrue salaries…
A: solution note : dear student as per the Q&A guideline we are required to answer the first…
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: Question 1 Failing to made a required adjusting entry related to unearned revenue will cause a…
A: Note points - every company must make the year-end adjustment entries. Failing to make such…
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: Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued expense, or…
A: Fees earned but not yet received will be considered under Accrued Revenue. Accrued revenue is a…
Q: A change from the straight-line method of depreciation to sum-of-years' digits is accounted for as…
A: Change in accounting estimate relates with an estimates for doubtful allowance, estimate for…
Q: What is the impact of prepaid expenses before year end adjusting entries. The answer is A .…
A: Prepaid expense is the one which is paid by the company in advance.
Q: Which of the following is an example of a deferral (or prepaid) adjusting entry? a. Recording the…
A:
Q: Which of the following transactions is an example of accrual? a. Unrecorded income is recognized. b.…
A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…
Q: - Instruction: Fill in the blank on the type/nature of the adjustment or the pro-forma entry of the…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: What effect will this adjustment have on the accounting recor Unearned Fees 6,375 Fees Earned 6,37 O…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.
Q: Does the correct (reconciled), adjustment, or adjusted ending balance: increase total assets or…
A: Introduction:- Assets: An asset is an useful resource that a person, company, or country possesses…
Q: Which of the following statements is false? 1. An income statement reports revenues earned less…
A: 1. An income statement reports revenues earned less expenses incurred. The income statement shows…
Q: Adjusting entries prepared to record unearned revenue results in: An increase in an asset account…
A: Adjusting entries are prepared at the end of the accounting period to ensure the accrual base…
Q: Which of the following is not an example of an adjusting journal entry? O a. Recording interest…
A: An adjusting entry occurs at the end of an accounting period to record any unrecognized income or…
Q: Which of the following does not require an adjusting entry at year-end? Multiple Choice A.…
A: Adjusting entry at year-end : The adjusting entries at the year-end are recorded for…
Q: In year 2022, payment of rent for the month is debited to Rent Income. What is the effect of the…
A: Correct entry: Debit: Rent expense Credit: Cash Entry recorded: Debit: Rent income Credit: Cash…
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: On November 1, Zuhoor Muscat Company provided services to customers and billed them for RO 6,500. If…
A: At the time of providing services to customers, revenue should be recorded in income statement and…
Q: the effect of the credit portion of an adjusting entry is to increase the balance of a liability…
A: Adjusting entries are prepared at end of period (can be month end or year end) so as to reflect…
Q: Services were performed but not billed. What effect will this have on the income statement if an…
A: Adjusting entries are prepared at the end of the accounting period in order to ensure the accrual…
Q: S1: A change in accounting estimate is accounted for as a prior period adjustment to the opening…
A: Question is based on the concept of Accounting standards
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: Which of the following is not a characteristic of adjusting entries? a. Reduce the balances of…
A: Adjusting entries are entries used to record events that occur during the period but that have not…
Q: Which of these accounts is not included in the post-closing trial balance? A)Land B)Notes Payable…
A: In post closing trail balance, all temporary accounts are closed and transferred to Income Summary…
Q: What is the effect of omission of prepaid expense in retained earnings at the end of year 2? a.…
A: A basic Accounting equation is given as under; Assets = Equity + Liabilities Meaning, Total…
Q: What effect does “recognizing revenue at the end of the accounting period for rent previously…
A: Recognizing revenue at the end of the accounting period for rent previously received in advance. the…
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: 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: Which of the following is most likely not considered an adjusting entry? a. The accrual of an…
A: Solution: "The entry to record the collection of interest receivable" is most likely not considered…
Q: Non-recognition of deferral at the end of the accounting period will a.understate income and…
A: Deferrals means the payment made or received for the expenses or the income which has not been yet…
Q: Which of the following transactions during the year would most likely not need an adjusting entry…
A: "We will answer the first question since the exact one is not specified. Please submit a new…
Q: The adjusting entry for accrued fees was omitted at the end of the current year. Indicate which…
A: Required adjusting entry:
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: 6. Which of the following is least likely to be an adjusting entry a. The entry to accrue salaries…
A: Adjusting entries are the journal entries to adjust revenues or expenses with respect to the period…
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: Which of the following adjusting entries would most likely be reversed? Depreciation Unpaid Salaries…
A: Adjusting entries are made at the end of the period to adjust for the balances and transactions…
Q: If, during an accounting period, an expense item has been incurred and consumed but not yet paid for…
A: Adjusting entry: Debit: Expense Account Credit: Expense Payable Account
Q: In year 2022, payment of rent for the month is debited to Rent Income. What is the effect of the…
A: Solution Concept When the expense is not recorded the effect is understatement of the expenses and…
Q: Which of the following accounts will not be closed to Retained Earnings at the end of the fiscal…
A: There are two types of accounts. One is permanent accounts and other is temporary accounts.…
Q: If an expense has been incurred but not yet recorded, the adjusting entry would involve: a. A…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: Which of the following accounts will not be closed to Retained Earnings at the end of the fiscal…
A: All the temporary accounts are closed to permanent accounts such as all the expenses, losses, gains,…
Q: Which of the following is true regarding adjusting entries? a.Adjusting entries are optional…
A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…
Q: Which of the following statements is NOT true about adjusting entries? A Adjusting entries are dated…
A: ADJUSTING ENTRIES ARE USUALLY MADE ON LAST DAY OF AN ACCOUNTING PERIOD . ADJUSTING ENTRIES ARE FOR…
Which of the following is NOT an accounting method that would increase the
Not adjusting prepaid insurance at year end
Recognising unearned revenue as revenue |
Not recognising accrued wages
Changing the method of |
Step by step
Solved in 2 steps
- In year 2022, collection of interest income is credited to Interest Expense. What is the effect of the error in year 2022 net income? Group of answer choices a. Overstated b. Understated c. Cannot be determined based on the given information. d. No effectWhich of the following types of errors will not self-correct in the next year? Accrued expenses not recognized at year-end Accrued revenues that have not been collected not recognized at year-end Depreciation expense overstated for the year Prepaid expenses not recognized at vear-endIn year 2022, collection of interest income is credited to Interest Expense. What is the effect of the error in year 2022 revenue and expenses? a. Revenue - understated; expenses - understated b. Revenue - overstated; expenses - overstated c. Revenue - understated; expenses - overstated d. Revenue - overstated; expenses - understated
- Which of the following statements regarding accounting change is correct? a. Change in depreciation method is accounted for as a change in accounting policy. b. Change in accounting estimate is accounted for in current and future periods. c. The categories of accounting changes are change in accounting estimate and correction of prior period error. d. A switch from the direct write-off method to the allowance method of accounting for bad debts is an example of change in accounting policy.In year 2022, collection of interest income is credited to Interest Expense. What is the effect of the error in year 2022 revenue and expenses? a.Revenue - understated; expenses - overstated b.Revenue - overstated; expenses - overstated c.Revenue - understated; expenses - understated d.Revenue - overstated; expenses - understatedWhich of the following adjusting entries involves the recognition of an accrued expense? a. recording depreciation on a long-lived asset b. writing off the portion of an insurance policy that has expired c. recognition of salaries owed to employees for work done during the current period that will be paid during the next accounting period d. recognition of bad debt losses that are expected to result from making sales on credit terms
- What amount of doubtful account expense should Zee Company report for the current year? What total amount of expenses should X Company recognize in the fourth quarter? What total amount of loss on factoring should Y Company recognize in the current year?According to AASB110, which of the following is an adjusting event? Select one: a. All of the above b. Determination after the end of the reporting period of amount of profit sharing or bonus payments c. Determination after the end of the reporting period of cost of assets purchased prior to year end d. Discovery of fraud or errors showing that the financial statements are incorrectIf the income statement error is discovered in a subsequent accounting period, what action is to be done by the entity? Group of answer choices a. Reclassify the item to its proper nominal account and restate the income statement of the prior year affected by the error. b. Restate the income statement of the prior year affected by the error. c. No reclassifying entry is necessary but restate the income statement of the prior year affected by the error. d. Reclassify the item to its proper nominal account. Recording of next year's sales as sales of the current year will Group of answer choices a. overstate net income of next year b. not affect retained earnings at the end of next year c. understate retained earnings at the end of the current year d. understate net income of the current year
- 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.Which of the following will affect net income? O O Writing off an Account Receivable. Estimating bad debts at the end of the year Re-establishing and collection of an account that was previously written off. O All of the above transactions will affect net income.Which of the following would appear as a prior period adjustment? Group of answer choices a correction in the calculation of earnings per share of a prior period a material difference between the actual and estimated uncollectible accounts receivable a material loss resulting from the sale of fixed assets which were acquired in a prior period material error in the computation of depreciation expense in the Year 1 that was discovered and corrected in the Year 3