Questions from Financial Accounting

Q: Which of the following statements is false? a. Adjusting

Which of the following statements is false? a. Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. b. Adjusti...

Q: Dallas Company loaned $10,000 to Ewing Company on December

Dallas Company loaned $10,000 to Ewing Company on December 1, 2019. Ewing will pay Dallas $720 of interest ($60 per month) on November 30, 2020. Dallas’s adjusting entry at December 31, 2019, is: a. I...

Q: Ron’s Diner received the following bills for December 2019 utilities:

Ron’s Diner received the following bills for December 2019 utilities: . Electricity: $625 on December 29, 2019 . Telephone: $150 on January 5, 2020 Both bills were paid on January 10, 2020. On the Dec...

Q: In September 2019, GolfWorld Magazine obtained $15,000 of

In September 2019, GolfWorld Magazine obtained $15,000 of subscriptions for 1 year of magazines and credited Unearned Sales Revenue. The magazines will begin to be delivered in October 2019. At Decemb...

Q: Hurd Inc. prepays rent every 3 months on March 1,

Hurd Inc. prepays rent every 3 months on March 1, June 1, September 1, and December 1. Rent for the 3 months totals $3,600. On December 31, 2019, Hurd will report Prepaid Rent of: a. $0 b. $1,200 c. $...

Q: An analysis of the transactions of Rutherford Company for the year ended

An analysis of the transactions of Rutherford Company for the year ended December 31, yields the following information: sales revenue, $65,000; insurance expense, $4,300; interest income, $3,900; cost...

Q: Which of the following statements is incorrect regarding preparing financial statements?

Which of the following statements is incorrect regarding preparing financial statements? a. The adjusted trial balance lists only the balance sheet accounts in a ‘‘debit’’ and ‘‘credit’’ format. b. Th...

Q: Reinhardt Company reported revenues of $122,000 and expenses of

Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income statement. In addition, Reinhardt paid $4,000 of dividends during 2019. On December 31, 2019, Reinhardt prepa...

Q: Which of the following is true regarding the accounting cycle?

Which of the following is true regarding the accounting cycle? a. The accounts are adjusted after preparing the financial statements. b. Journal entries are made prior to the transaction being analyze...

Q: Listed below are events that affect stockholders’ equity. a.

Listed below are events that affect stockholders’ equity. a. Reported net income of $85,000. b. Paid a cash dividend of $10,000. c. Reported sales revenue of $120,000. d. Issued common stock of $50,00...