Question :
149.A balance sheet that places the liabilities and equity to : 1236838
149.A balance sheet that places the liabilities and equity to the right of the assets is a(n):
A.Account form balance sheet.
B.Report form balance sheet.
C.Interim balance sheet.
D.Classified balance sheet.
E.Unclassified balance sheet.
150.Under the alternative method for accounting for unearned revenue, which of the following pairs of journal entry formats is correct?
A.Initial EntryAdjusting Entry
CashUnearned Consulting Revenue
Unearned Consulting RevenueConsulting Revenue
B.Initial EntryAdjusting Entry
CashConsulting Revenue
Consulting RevenueUnearned Revenue
C.Initial EntryAdjusting Entry
CashUnearned Revenue
Unearned RevenueCash
D.Initial EntryAdjusting Entry
Consulting RevenueUnearned Revenue
CashConsulting Revenue
E.Initial EntryAdjusting Entry
CashConsulting Revenue
Unearned RevenueUnearned Revenue
151.Under the alternative method for recording prepaid expenses, which is the correct set of journal entries?
A.Initial EntryAdjusting Entry
Insurance ExpensePrepaid Insurance
CashInsurance Expense
B.Initial EntryAdjusting Entry
CashPrepaid Insurance
Insurance ExpenseInsurance Expense
C.Initial EntryAdjusting Entry
Prepaid InsurancePrepaid Insurance
CashInsurance Expense
D.Initial EntryAdjusting Entry
Prepaid InsuranceInsurance Expense
CashPrepaid Insurance
E.Initial EntryAdjusting Entry
Prepaid InsuranceCash
Insurance ExpensePrepaid Insurance
152.Which of the following statements related to U.S. GAAP and IFRS is incorrect?
A.Both U.S. GAAP and IFRS include guidance for adjusting entries.
B.Both U.S. GAAP and IFRS prepare the same four financial statements.
C.U.S. GAAP does not require items to be separated by current and noncurrent classifications on the balance sheet.
D.U.S. GAAP balance sheets report current items first.
E.IFRS balance sheets normally present noncurrent items first.
153.On December 1, Milton Company borrowed $300,000, at 8% annual interest, from the Tennessee National Bank. Interest is paid when the loan matures one year from the issue date. What is the adjusting entry for accruing interest that Milton would need to make on December 31, the calendar year-end?
A.debit Interest Payable, $2,000; credit Interest Expense, $2,000.
B.debit Interest Expense, $2,000; credit Interest Payable, $2,000.
C.debit Interest Expense, $2,000; credit Cash, $2,000.
D.debit Interest Expense, $4,000; credit Interest Payable, $4,000.
E.debit Interest Expense, $24,000; credit Interest Payable, $24,000.
154.All of the following are true regarding prepaid expenses except:
A.They are paid for in advance of receiving their benefits.
B.They are assets.
C.When they are used, their costs become expenses.
D.The adjusting entry for prepaid expenses increases expenses and decreases liabilities.
E.The adjusting entry for prepaid expenses increases expenses and decreases assets.
155.An annual reporting period consisting of any twelve consecutive months is known as:
A.Fiscal year.
B.Calendar year.
C.Interim financial period.
D.Natural business year.
E.Seasonal year.
156.Two accounting principles central to accrual accounting basis that are relied on in the adjusting process are:
A.Revenue recognition and monetary unit.
B.Revenue recognition and going-concern.
C.Matching and cost.
D.Matching and business entity.
E.Revenue recognition and matching.
157.All of the following are true regarding unearned revenues except:
A.They are payments received in advance of services performed.
B.The adjusting entry for unearned revenues increases assets and increases revenues.
C.The adjusting entry for unearned revenues increases revenues and decreases liabilities.
D.They are liabilities.
E.As they are earned, they become revenues.
158.Assuming prepaid expenses are originally recorded in balance sheet accounts, the adjusting entry to record use of a prepaid expense is:
A.Increase an expense; increase a liability.
B.Increase an asset; increase revenue.
C.Decrease a liability; increase revenue.
D.Increase an expense; decrease an asset.
E.Increase an expense; decrease a liability.
