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strayer acc100 week 2 quiz ch 2 and quiz ch 3

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Question;Question 1 A compound journal entry involves three or more accounts. two accounts. three accounts. four or more accounts.SCOREQuestion 2 Evidence that would not help with determining the effects of;a transaction on the accounts would be a(n) check. cash register sales tape. bill. advertising brochure.Question 3 The entire group of accounts maintained by a company is;called the general ledger. trial balance. general journal. chart of accounts.Question 4 The first step in designing a computerized accounting system;is the creation of the chart of accounts. general ledger. general journal. trial balance.Question 5 A trial balance is a listing of the chart of accounts. the totals from the journal pages. general ledger accounts and balances. transactions in a journal.Student did not submit Show Work for this attemptQuestion 6 A business organized as a corporation is owned by its stockholders. terminates when one of its original stockholders dies. is not a separate legal entity in most states. requires that stockholders be personally liable for the;debts of the business.Student did not submit Show Work for this attemptSHOW ANSWERAttempt of 1 GOQuestion 7 The fair value principle is applied for buildings. investment securities. all assets. current assets.Question 8 A basic assumption of accounting that requires activities of;an entity be kept separate from the activities of its owner is referred to as;the monetary unit assumption. corporate form of ownership. economic entity assumption. stand alone concept.Student did not submit Show Work for this attemptAttempt of 1 GOQuestion 9 The proprietorship form of business organization is characterized by a legal distinction between the business;as an economic unit and the owner. represents the largest number of businesses in the United;States. combines the records of the business with the personal;records of the owner. must have at least three owners in most states.Question 10 Financial information that is capable of making a difference;in a decision is relevant. convergent. generally accepted. faithfully representative.Student did not submit Show Work for this attemptSHOW ANSWERQuestion 1 An adjusting entry affects two balance sheet accounts. affects two income statement accounts. affects a balance sheet account and an income statement;account. is always a compound entry.Student did not submit Show Work for this attemptQuestion 2 Accounts often need to be adjusted because there are never enough accounts to record all the;transactions. many transactions affect more than one time period. there are always errors made in recording transactions. management can't decide what they want to report.Student did not submit Show Work for this attemptAttempt of 1 GOQuestion 3 If a business has received cash in advance of services;performed and credits a liability account, the adjusting entry needed after the;services are performed will be debit Unearned Service Revenue and credit Service Revenue. debit Unearned Service Revenue and credit Cash. debit Unearned Service Revenue and credit Accounts;Receivable. debit Unearned Service Revenue and credit Prepaid Expense.Student did not submit Show Work for this attemptQuestion 4 The time period assumption states that adjustments to the company's accounts can only be made in;the time period when the business terminates its operations. estimates should not be made if a transaction affects more;than one time period. the economic life of a business can be divided into;artificial time periods. a transaction can only affect one period of time.Student did not submit Show Work for this attemptQuestion 5 Failure to prepare an adjusting entry at the end of the;period to record an accrued expense would cause an overstatement of expenses and an overstatement of;liabilities. an understatement of expenses and an understatement of;liabilities. net income to be understated. an overstatement of assets and an overstatement of;liabilities.Question 6 The balance in the Prepaid Rent account before adjustment at;the end of the year is $21,000, which represents three months? rent paid on;December 1. The adjusting entry required on December 31 is to debit Prepaid Rent, $14,000, credit Rent Expense, $14,000. debit Rent Expense, $7,000, credit Prepaid Rent, $7,000. debit Prepaid Rent, $7,000, credit Rent Expense, $7,000. debit Rent Expense, $14,000, credit Prepaid Rent $14,000.Student did not submit Show Work for this attemptQuestion 7 Pixies Inc. pays its rent of $54,000 annually on January 1.;If the February 28 monthly adjusting entry for prepaid rent is omitted, which;of the following will be true? Assets will be overstated by $4,500 and net income and;owner?s equity will be overstated by $4,500. Assets will be overstated by $9,000 and net income and;owner?s equity will be understated by $9,000. Failure to make the adjustment does not affect the February;financial statements. Expenses will be overstated by $4,500 and net income and;owner?s equity will be understated by $4,500.Attempt of 1 GOQuestion 8 A flower shop makes a large sale for $1,200 on November 30.;The customer is sent a statement on December 5 and a check is received on December;10. The flower shop follows GAAP and applies the revenue recognition principle.;When is the $1,200 considered to be recognized? December 5. December 10. December 1. November 30.Student did not submit Show Work for this attemptQuestion 9 A business pays weekly salaries of $30,000 on Friday for a;five-day week ending on that day. The adjusting entry necessary at the end of;the fiscal period ending on a Thursday is debit Salaries and Wages Expense, $6,000, credit Salaries;and Wages Payable, $6,000. debit Salaries and Wages Payable, $24,000, credit Cash;$24,000. debit Salaries and Wages Expense, $24,000, credit Cash;$24,000. debit Salaries and Wages Expense, $24,000, credit Salaries;and Wages Payable, $24,000.Question 10 NWA Air Charter signed a four-month note payable in the;amount of $20,000 on September 1. The note requires interest at an annual rate;of 9%. The amount of interest to be accrued at the end of September is $600. $1,800. $150. $200.Student did not submit Show Work for this attempt;="msonormal">="msonormal">

 

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