Potpourri Question
What's the debit and/or credit?
Calculate It!
What's the Answer?
Easy Peasy!
100
The accrual basis of accounting requires revenue be recorded when
What is they are earned.
100
Services provided by an attorney that have not yet been recorded.
What is a credit to revenue (accrued revenue) and a debit to Accounts Receivable. You earned it and it hasn't been recorded, revenue must be recognized in the period it was earned.
100
The balance in the office supplies account on June 1 was $3,200 and you purchased supplies for $2,500; supplies on hand was $2,000. How much should you make the adjusting entry for?
What is $3,700?
100
What is the GAAP principle that states expenses related to earning revenue must be reported at the same time the revenue is reported?
What is the matching principle?
100
Accrued Expenses usually appear on the Balance Sheet as:
What is a liability?
200
The updating of accounts at the end of the period.
What is adjusting entries (adjusting process).
200
What account is debited when you pay in advance for one year's insurance policy
What is a prepaid insurance?
200
Your business pays $20,000 for salaries on every Friday for the five day work week. If the ending of the fiscal pay period is on Thursday this month--how much should the adjusting entry be for?
What is $16,000 (20,000 / 5=$4,000 x 4)
200
Which of the following would be considered to be an accrual adjusting entry? Prepaid Rent, Insurance Expense or Interest Expense?
What is Interest Expense. The other two are adjustment to update accounts to their current value after using them. Interest expense is an accrual because you are recording what you will pay in the future.
200
What account is used to show the decrease in value of a fixed asset such as equipment or building?
What is accumulated depreciation?
300
The contra account that goes with Supplies.
What is supplies expense?
300
What account is credited when you retain legal fees from a client for legal representation before completing any work.
What is a unearned revenue?
300
On November 4, 2010, Blazek, Inc. received $24,000 in advance for work to be performed over the next several months. By December 31, 2010, 1/3 of the amount had been earned. The required adjusting entry would be:
What is a debit to unearned revenue of $8,000 and a credit to revenue $8,000. ($24,000 x 1/3)
300
What vocabulary defines this: Not earned but the cash has been received
What is unearned revenue?
300
What are two reasons for making adjusting entries?
What is 1. bring accounts up-to-date 2. match revenues with expenses
400
The two financial statements that adjusting entries represent.
What is the balance sheet and income statement?
400
Transaction to record receiving the electric bill to be paid next month.
What is a debit to telephone expense (utility expense) and credit telephone payable (utilities payable).
400
If a company depreciates its equipment for $550 a year, what would be the correct entry to make?
What is a debit to depreciation expense and a credit to accumulated depreciation?
400
The acronym GAAP.
What is Generally Accepted Accounting Principles?
400
Balance Sheet accounts are considered __ accounts and Income Statements accounts are considered __ accounts.
What is permanent and temporary accounts?
500
Adjusting entries never involve which account?
What is the cash account?
500
Received payment for a magazine subscription for the next 6 months. Adjusting entry after magazine was delivered for the first month.
What is a debit to unearned revenue and a credit to revenue?
500
You paid $2,200 for your insurance; $800 of it expired, (that means there is $1400 remaining) how much should your adjusting entry be for?
What is $800.
500
GAAP require accrual-basis accounting or cash-basis accounting?
What is accrual basis accounting?
500
If you have fees earned (accrued) but they are not billed, what account gets debited
What is accounts receivable?
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