Identify the name of end-of-period journal entry that reflects the accrual accounting.

Question

Want to see more full solutions like this?

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 1MC

To determine

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Expert Solution & Answer

Answer to Problem 1MC

Option b

Explanation of Solution

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

Justification for correct answer:

Option (b): Adjusting entries (also known as end of period adjustments) are journal entries that are made at the end of an accounting period to adjust the accounts to accurately reflect the revenues and expenses of the current period.

Justification for incorrect answers:

Option (a): Post journal entries is the course of transferring recorded business events from the general journal to the ledger. Therefore, option (a) is incorrect.

Option (c): Erroneous journal entry is made to fix the error that has been recorded. Therefore, option (c) is incorrect.

Option (d): Compound journal entry is an accounting entry that has more than one debit, more than one credit. Therefore, option (d) is incorrect.

Conclusion

Hence, Option (b) is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

The process of transferring general journal entry information to the ledger is called: a. Balancing an account. b. Journalizing. c. Posting. d. Double-entry accounting. e. Balancing. Which of the following is prepared after the preparation of the balance sheet? a. Closing entries. b. Adjusting entries. c. Adjusted trial balance. d. Statement of retained earnings. e. Ledger accounts. The posting reference column in the ledger is: A. used to record the journal and page number from the transactions originated. B. used to record the ledger number. C. used to record the date. D. not used.

Explain the difference between an original journal entry and an adjusting journal entry?

If a journal entry includes a debit or credit to the retained earnings account, it is most likely which of the following? A. A closing entry B. An adjusting entry C. An ordinary transaction entry D outside of the accounting cycle

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 1MC

To determine

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Expert Solution & Answer

Answer to Problem 1MC

Option b

Explanation of Solution

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

Justification for correct answer:

Option (b): Adjusting entries (also known as end of period adjustments) are journal entries that are made at the end of an accounting period to adjust the accounts to accurately reflect the revenues and expenses of the current period.

Justification for incorrect answers:

Option (a): Post journal entries is the course of transferring recorded business events from the general journal to the ledger. Therefore, option (a) is incorrect.

Option (c): Erroneous journal entry is made to fix the error that has been recorded. Therefore, option (c) is incorrect.

Option (d): Compound journal entry is an accounting entry that has more than one debit, more than one credit. Therefore, option (d) is incorrect.

Conclusion

Hence, Option (b) is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 1MC

To determine

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Expert Solution & Answer

Answer to Problem 1MC

Option b

Explanation of Solution

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

Justification for correct answer:

Option (b): Adjusting entries (also known as end of period adjustments) are journal entries that are made at the end of an accounting period to adjust the accounts to accurately reflect the revenues and expenses of the current period.

Justification for incorrect answers:

Option (a): Post journal entries is the course of transferring recorded business events from the general journal to the ledger. Therefore, option (a) is incorrect.

Option (c): Erroneous journal entry is made to fix the error that has been recorded. Therefore, option (c) is incorrect.

Option (d): Compound journal entry is an accounting entry that has more than one debit, more than one credit. Therefore, option (d) is incorrect.

Conclusion

Hence, Option (b) is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 1MC

To determine

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Expert Solution & Answer

Answer to Problem 1MC

Option b

Explanation of Solution

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

Justification for correct answer:

Option (b): Adjusting entries (also known as end of period adjustments) are journal entries that are made at the end of an accounting period to adjust the accounts to accurately reflect the revenues and expenses of the current period.

Justification for incorrect answers:

Option (a): Post journal entries is the course of transferring recorded business events from the general journal to the ledger. Therefore, option (a) is incorrect.

Option (c): Erroneous journal entry is made to fix the error that has been recorded. Therefore, option (c) is incorrect.

Option (d): Compound journal entry is an accounting entry that has more than one debit, more than one credit. Therefore, option (d) is incorrect.

Conclusion

Hence, Option (b) is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 3, Problem 1MC

To determine

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Expert Solution & Answer

Answer to Problem 1MC

Option b

Explanation of Solution

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

Justification for correct answer:

Option (b): Adjusting entries (also known as end of period adjustments) are journal entries that are made at the end of an accounting period to adjust the accounts to accurately reflect the revenues and expenses of the current period.

Justification for incorrect answers:

Option (a): Post journal entries is the course of transferring recorded business events from the general journal to the ledger. Therefore, option (a) is incorrect.

Option (c): Erroneous journal entry is made to fix the error that has been recorded. Therefore, option (c) is incorrect.

Option (d): Compound journal entry is an accounting entry that has more than one debit, more than one credit. Therefore, option (d) is incorrect.

Conclusion

Hence, Option (b) is the correct answer.

Answer 6

Chapter 3, Problem 1MC

To determine

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Expert Solution & Answer

Answer to Problem 1MC

Option b

Explanation of Solution

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

Justification for correct answer:

Option (b): Adjusting entries (also known as end of period adjustments) are journal entries that are made at the end of an accounting period to adjust the accounts to accurately reflect the revenues and expenses of the current period.

Justification for incorrect answers:

Option (a): Post journal entries is the course of transferring recorded business events from the general journal to the ledger. Therefore, option (a) is incorrect.

Option (c): Erroneous journal entry is made to fix the error that has been recorded. Therefore, option (c) is incorrect.

Option (d): Compound journal entry is an accounting entry that has more than one debit, more than one credit. Therefore, option (d) is incorrect.

Conclusion

Hence, Option (b) is the correct answer.

Answer 7

Chapter 3, Problem 1MC

To determine

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Answer 8

Expert Solution & Answer

Answer to Problem 1MC

Option b

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

Justification for correct answer:

Option (b): Adjusting entries (also known as end of period adjustments) are journal entries that are made at the end of an accounting period to adjust the accounts to accurately reflect the revenues and expenses of the current period.

Justification for incorrect answers:

Option (a): Post journal entries is the course of transferring recorded business events from the general journal to the ledger. Therefore, option (a) is incorrect.

Option (c): Erroneous journal entry is made to fix the error that has been recorded. Therefore, option (c) is incorrect.

Option (d): Compound journal entry is an accounting entry that has more than one debit, more than one credit. Therefore, option (d) is incorrect.

Answer 12

Conclusion

Hence, Option (b) is the correct answer.

Answer 13

Ch. 3 - Prob. 1MC Ch. 3 - Prob. 2MC Ch. 3 - Prob. 3MC Ch. 3 - Prob. 4MC Ch. 3 - Prob. 5MC Ch. 3 - Prob. 1Q Ch. 3 - Prob. 2Q Ch. 3 - Prob. 3Q Ch. 3 - Prob. 4Q Ch. 3 - Prob. 5Q

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Concept explainers

Videos

Identify the name of end-of-period journal entry that reflects the accrual accounting.

Answer to Problem 1MC

Explanation of Solution

Want to see more full solutions like this?

Chapter 3 Solutions