Which of the following transactions is an example of accrual? a. Unrecorded income is recognized. b. Depreciation is recorded c. Supplies used is recorded d. Expired prepaid insurance is recorded e. None of the above
Which of the following transactions is an example of accrual?
a. Unrecorded income is recognized.
b.
c. Supplies used is recorded
d. Expired prepaid insurance is recorded e. None of the above
2. Which of the following transactions involves accrual?
a. The payment of prepaid rent
b. Salaries incurred but not yet paid.
c. Tuition fees collected in advance
d. Payment of future commercial advertising.
e. None of the above
3. Which of the following transactions is an example of accrual?
a. Depreciation is recorded
b. Service fees collected in advance is adjusted
c. Supplies used is recorded.
d. Prepaid insurance is adjusted
e. None of the above
4. Which of the following transactions is an example of deferral?
a. Service fees already earned but not yet collected.
b. The purchase of a company vehicle. c. Unpaid salaries and benefits
d. Interest earned from time deposit certificate
e. None of the above.
5. Which of the following transactions involves deferral?
a. Rent for 1 year paid in advance
b. Interest payable on mortgage loan.
c. Salaries paid for the month
d. Professional fees receivable
e. None of the above
6. Which of the following transactions is an example of deferral?
a. Recording unrecorded salaries
b. Recording accrued interest
c. Recording unrecorded revenue
d. Recording of unearned revenue
e. None of the above
7. Failure to adjust expenses at the end of the accounting period will result to
a. Understatement of owner's equity.
b. Understatement of liabilities
c. Overstatement of assets
d. Understatement of Net Income
e. None of the above
8. Failure to adjust prepaid rent at the end of the accounting period will result to
a. Overstatement of owner's equity
b. Understatement of liabilities
c. Understatement of assets
d. Understatement of Net Income
e. None of the above
9. Failure to record depreciation at the end of the accounting period will result toa.
a. Overstatement of Expenses
b. Understatement of liabilities
c. Understatement of Expenses
d. Understatement of Net Income
e. None of the above
10. Failure to adjust uneared income at the end of the accounting period will result to
a. Overstatement of income
b. Understatement of liabilities
c. Overstatement of Owner's equity.
d. Overstatement of Assets
e. None of the above
10. Failure to adjust income at the end of the accounting period will result to
a. Understatement of liabilities
b. Understatement of income
c. Overstatement of owner's equity
d. Overstatement of assets
e. None of the above
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