After the adjustments have been completed, the adjusted balance in the Accumulated Depreciation account represents the: total depreciation taken on the long-lived assets since their purchase. a. Identify the related account that is associated with this account (the other account in the adjusting entry). bad debts appear as an adjustment outside the trial balance. Which of the following account balances will typically be increased as a result of adjusting entries? The adjusting entry to record the amortization includes a debit to ______ and a credit to: Amortization Expense; Accumulated Amortization. At the end of the month, the adjusting journal entry to record the use of supplies would include a debit to: Supplies Expense and a credit to Supplies. What is the company's net income? When making an adjustment to recognize supplies used in a period, total assets will not change. reconcile accrual accounting with cash accounting. Interest Expense should be increased, because the cost of interest relates to the current period. B. All of the following are goals of internal control except: minimizing the amount of income taxes that must be paid. Deferral adjustments are required to update previously recorded items whereas accrual adjustments are required to include items not previously recorded. C) A simultaneous decrease in demand and increase in supply will results in an increase in equilibrium price and uncertain effect on quantity. Which of the following statements correctly describes an imprest system? Illustration 11: Prepare the Bank Reconciliation Statement from the following data as on 30.11.06: (i) Balance as per the Pass Book 30.11.06 (Dr.) Rs. Bearskin Inc. has recorded all the year-end adjustments. A company should always keep extra inventory on hand; it could be needed if demand increases and it has to be bought sooner or later so it adds nothing to cost. Which of the following is not an example of internal control? Long-lived assets, such as equipment, are reported at their ______ value on the balance sheet, Accounts Receivable should be increased for, revenues earned during the period but not yet collected. A)Without adjustments,the financial statements present an incomplete and misleading picture of the company. Which of the following is not a significant objective of the Sarbanes-Oxley (SOX) Act? View desktop site, 14) Which of the following statements is correct regarding adjustments? The first adjustment is presented as an example. Question 3 Which of the following statements is CORRECT? The adjusting entry to record the supplies used during the period will result in a(n): decrease to Supplies and an increase to Supplies Expense. The Sales Revenue account has a credit balance of $367,200 at year end. If so, the net impact on the financial statements may be immaterial, so the client may be justified in not recording the entire group of adjustments. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table similar to the following. During the year the company purchased additional supplies of $800 and recorded them as increase to the supplies asset. Inversely, out-of-period adjustments were on the rise between 2011 and 2016, reaching a high of 327 adjustments in 2016. C. Because electronic ignition modules contain so many moving parts, they tend to wear out very quickly. The adjustment to recognize amortization for the use of software would cause which of the following? Which of the following is not a document in the voucher system? Which of the following statements is correct? Its revenue accounts total $190,000 and its expense accounts total $130,000. Which of the following transactions constitutes an accrual adjustment involving a revenue account? At the end of the month, the related adjusting journal entry would result in a(n): decrease in an asset and an equal increase in expenses. A. The company switches from using the cash method to using the accrual method to book revenue, resulting in understated net sales of $20,000. The cost of the product is $300. Adjusting entries often affect the cash account. A company reports Equipment on its classified balance sheet. Which of the following is the equation for cost of goods sold? Question: Please Answer All Parts #21-26, Type Your Response And Provide An Explanation 21) Which Of The Following Statements Is Correct? Criminally minded employees have been known to override internal controls or do which of the following to get around them? After the closing entries have been posted, the account will: The balance in retained earnings prior to the closing process equals, the balance at the end of the previous accounting period. Only temporary accounts are closed at the end of the accounting period. Three months of rent were prepaid on May 1 for $7,200, but two months have now expired, leaving only one month prepaid at June 30. 22. Salaries and Wages Expense and a credit to Salaries and Wages Payable for $700. Which of the following is the usual last step in the accounting cycle? is a collection of documents prepared at each step in the voucher system. The journal entry to establish a petty cash fund should include a debit to: The petty cash fund was used to reimburse employees for office expenses during the month. Assume that the custodian of a $450 petty cash fund has $62.50 in currency and coins plus $387.50 in receipts at the end of the month. 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