Data for an adjusting entry described as "accrued wages, $2,020" means to debit
  • been earned and not recorded as revenue
  • debit Wages Expense; credit Wages Payable
  • Salary Expense for the year was understated.
  • Wages Expense and credit Wages Payable
Supplies are recorded as assets when purchased. Therefore, the credit to supplies in the adjusting entry is for the amount of supplies
  • $54,000
  • used
  • Interest Expense
  • Depreciation Expense
For the year ending December 31, Orion, Inc. mistakenly omitted adjusting entries for $1,500 of supplies that were used, (2) unearned revenue of $4,200 that was earned, and (3) insurance of $5,000 that expired. For the year ending December 31, what is the effect of these errors on revenues, expenses, and net income?
  • Salary Expense for the year was understated.
  • Net income is overstated by $2,300.
  • debit Supplies Expense $4,750, credit Supplies $4,750
  • Interest Income and Interest Expense
As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called
  • liabilities
  • Depreciation Expense
  • depreciation
  • Interest Expense
Which of the accounts below would most likely appear on an adjusted trial balance but probably would not appear on the trial balance?
  • depreciation
  • Depreciation expense reflects the decrease in market value each year.
  • Depreciation Expense
  • Interest Expense
Using accrual accounting, expenses are recorded and reported only
  • income statement account and one balance sheet account
  • Wages Expense and credit Wages Payable
  • been earned and not recorded as revenue
  • when they are incurred, whether or not cash is paid
The balance in the prepaid rent account before adjustment at the end of the year is $32,000, which represents four months' rent paid on DecemberThe adjusting entry required on December 31 is
  • debit Wages Expense; credit Wages Payable
  • debit Supplies Expense $4,750, credit Supplies $4,750
  • debit Rent Expense, $8,000; credit Prepaid Rent, $8,000
  • Salary Expense for the year was understated.
The unearned rent account has a balance of $72,If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is
  • debit Supplies Expense $4,750, credit Supplies $4,750
  • Interest Expense
  • used
  • $54,000
Which of the following is not true regarding depreciation?
  • Depreciation expense reflects the decrease in market value each year.
  • Interest Income and Interest Expense
  • In a vertical analysis of an income statement, each item is stated as a percent of total expenses.
  • Depreciation Expense
Adjusting entries affect at least one
  • when they are incurred, whether or not cash is paid
  • income statement account and one balance sheet account
  • not earned but the cash has been received
  • not yet been recorded as expenses
the matching concept
  • Depreciation expense reflects the decrease in market value each year.
  • states that the revenues and related expenses should be reported in the same period
  • income statement account and one balance sheet account
  • debit Rent Expense, $8,000; credit Prepaid Rent, $8,000
At the end of the fiscal year, the usual adjusting entry for accrued salaries owed to employees was omitted. Which of the following statements is true?
  • debit Wages Expense; credit Wages Payable
  • Salary Expense for the year was understated.
  • Wages Expense and credit Wages Payable
  • Interest Expense
Which one of the accounts below would likely be included in an accrual adjusting entry?-insurance expense, prepaid rent, interest expense, unearned rent
  • Interest Income and Interest Expense
  • Unearned Revenue
  • Depreciation Expense
  • Interest Expense
Deferred revenue is revenue that is
  • been earned and not recorded as revenue
  • debit Wages Expense; credit Wages Payable
  • not earned but the cash has been received
  • not yet been recorded as expenses
Which one of the following accounts below would likely be included in a deferral adjusting entry?
  • Unearned Revenue
  • Interest Income and Interest Expense
  • Depreciation Expense
  • Interest Expense
Deferred expenses have
  • not yet been recorded as expenses
  • not earned but the cash has been received
  • Net income is overstated by $2,300.
  • Interest Income and Interest Expense
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