Question : 61.Which one of the following statements true? a.Accruals adjustments that recorded : 1241829

 

61.Which one of the following statements is true?

a.Accruals are adjustments that are recorded prior to the associated cash flow taking place.

b.Cash is used in the accrual process.

c.Accrual accounting recognizes revenues and expenses based on current period cash flows.

d.Accrual accounting may use either two asset or two liability accounts.

62.Which one of the following is a required characteristic of accruals and deferrals?

a.An asset or a liability will always be affected.

b.Cash is either increased or decreased as a result of recording an accrual or deferral.

c.Accruals record revenues, and expenses record deferrals.

d.An asset and an expense item will always be affected.

63.The main purpose of the adjusting process is

a.to remove the effects of all transactions recorded during the accounting period.

b.to make the account balances reflect the company’s true position according to the guidelines of accrual accounting.

c.to get the accounting records ready for a new accounting period.

d.to identify the amount of cash available for dividends to be paid.

64.The biggest distinction between accruals and deferrals is

a.one emphasizes conservatism while the other promotes aggressive accounting positions.

b.how long a company must wait until the collection of cash occurs.

c.with accruals, no record of the activity has been made prior to the adjustment process, and with deferrals, the activity has already been recorded in the accounting records, but the proper amount of revenue or expense has not been recognized.

d.adjustments are necessary for accruals, whereas, adjustments are not necessary for deferrals.

65.Closing entries result in net income being transferred to

a.a revenue account.

b.the cash account.

b.the contributed capital account.

d.the retained earnings account.

66.A multinational is

a.a company that prepares accruals and deferrals throughout the year as well as yearend.

b.a corporation that has no home country due to operations in several countries.

c.a corporation that has its home in one country but operates under the laws of other countries as well.

d.a type of adjusting entry necessary for companies that trade with corporations in other countries.

67.On December 31, 2015, immediately after all the adjustments were made to Kingman Corp’s accounting records for the 2015 fiscal year, but before the books were closed, the retained earnings account reflected a balance of $60,000. Kingman Corp’s net income for 2015 was $12,000. Kingman paid no dividends during 2015. On the balance sheet for January 1, 2016, the beginning balance in the retained earnings account will be

a.$0

b.$72,000

c.$38,000

d.$60,000

68.On December 31, 2015, immediately after all the adjustments were made to Gilbert Inc.’s accounting records for the 2015 fiscal year, but before the books were closed, the retained earnings account reflected a deficit balance of $80,000. The sum of the pre-closing balances of all of Gilbert’s temporary accounts was a net credit balance of $10,000. Gilbert paid no dividends during 2015. On the balance sheet for January 1, 2016, the beginning balance in the retained earnings account will be

a.$0

b.$70,000 debit

c.$80,000 credit

d.$90,000 credit

69.On December 13, 2015, Tucson Corp. paid $12,000 for a two year property insurance policy covering their corporate headquarters for the period December 15, 2015 to December 15, 2017. The payment was charged to insurance expense. What adjusting entry is needed at the end of December?

 

a.

Cash

12,000

 

 

 

Prepaid insurance

 

12,000

b.

Prepaid insurance

11,750

 

 

 

Insurance expense

 

11,750

c.

Insurance expense

12,000

 

 

 

Cash

 

12,000

d.

Insurance expense

11,750

 

 

 

Accounts payable

 

11,750

70.During Bisbee’s first year of business, office supplies were purchased for cash in the amount of $4,600 and the amount was debited to supplies expense. At the end of the first year, the physical count indicated that $425 of supplies was unused. How much should be reported on the income statement at year end for office supplies expense?

a.$4,600

b.$4,175

c.$5,025

d.$425

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more