{"id":23698,"date":"2022-01-09T06:51:49","date_gmt":"2022-01-09T06:51:49","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/depreciation-expense-and-accumulated-depreciation-are-classified\/"},"modified":"2022-01-09T06:51:49","modified_gmt":"2022-01-09T06:51:49","slug":"depreciation-expense-and-accumulated-depreciation-are-classified","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/depreciation-expense-and-accumulated-depreciation-are-classified\/","title":{"rendered":"Depreciation expense and accumulated depreciation are classified,"},"content":{"rendered":"
\n

Question<\/span><\/p>\n

Question 1. Question : Depreciation Expense and Accumulated Depreciation are classified, respectively, as<\/span><\/p>\n

expense and contra asset<\/span><\/p>\n

asset and contra liability<\/span><\/p>\n

revenue and asset<\/span><\/p>\n

contra asset and expense<\/span><\/p>\n

Question 2. Question : Which type(s) of adjustments are the financial statements affected by?<\/span><\/p>\n

Deferrals<\/span><\/p>\n

Accruals<\/span><\/p>\n

Both deferrals and accruals<\/span><\/p>\n

Neither deferrals nor accruals<\/span><\/p>\n

Question 3. Question : Accumulated depreciation is __________ to get the carrying value.<\/span><\/p>\n

added to equipment<\/span><\/p>\n

subtracted from equipment<\/span><\/p>\n

added to accounts payable<\/span><\/p>\n

subtracted from accounts payable<\/span><\/p>\n

Question 4. Question : The accounting equation is the basis for analyzing, summarizing, and recording transactions in accounting. The accounting equation is:<\/span><\/p>\n

Assets =Liabilities<\/span><\/p>\n

Assets = Liabilities + Stockholders Equity<\/span><\/p>\n

Liabilities = Assets + Stockholders Equity<\/span><\/p>\n

Stockholders Equity = Liabilities + Assets<\/span><\/p>\n

Question 5. Question : Accrual accounting records revenue when:<\/span><\/p>\n

Earned<\/span><\/p>\n

Cash is received<\/span><\/p>\n

Products are completed<\/span><\/p>\n

Salaries are paid<\/span><\/p>\n

Question 6. Question : On the balance sheet, Accrued expenses are ordinarily reported as:<\/span><\/p>\n

Fixed assets<\/span><\/p>\n

Prepaid expenses<\/span><\/p>\n

Assets<\/span><\/p>\n

Liabilities<\/span><\/p>\n

Question 7. Question : What are the four timing differences between recognizing revenues and expenses between accrual basis and cash basis accounting?<\/span><\/p>\n

Accrued revenue, accrued expenses, deferred revenue, deferred expenses<\/span><\/p>\n

Cash, revenue, expenses and liabilities<\/span><\/p>\n

Accounts receivable, accounts payable, long term liabilities, intangible assets<\/span><\/p>\n

Revenue, expenses, assets, retained earnings<\/span><\/p>\n

Question 8. Question : When cash is received in payment of an account receivable, which section of the Statement of Cash Flows is affected?<\/span><\/p>\n

Cash Flow from Operating Activities<\/span><\/p>\n

Cash Flow from Investing Activities<\/span><\/p>\n

Cash Flow from Financing Activities<\/span><\/p>\n

There is no effect on the Statement of Cash Flows.<\/span><\/p>\n

Points Received: 0 of 2<\/span><\/p>\n

Question 9. Question : After recording transactions for the accounting period, which financial statement does a company prepares statement first?<\/span><\/p>\n

Income statement<\/span><\/p>\n

Balance sheet<\/span><\/p>\n

Retained earnings statement<\/span><\/p>\n

Statement of cash flows<\/span><\/p>\n

Question 10. Question : X&M Co. provided services of $2,000,000 to clients on account. How does this transaction affect A&M’s accounts?<\/span><\/p>\n

Increase accounts receivable and cash by $2,000,000 each<\/span><\/p>\n

Increase accounts receivable and unearned revenues by $2,000,000 each<\/span><\/p>\n

Increase cash and decrease accounts receivable by $2,000,000 each<\/span><\/p>\n

Increase accounts receivable and revenues by $2,000,000 each<\/span><\/p>\n

Question 11. Question : Cash receipts from interest and dividends are classified as<\/span><\/p>\n

investing activities<\/span><\/p>\n

operating activities<\/span><\/p>\n

either financing or investing activities<\/span><\/p>\n

financing activities<\/span><\/p>\n

Question 12. Question : ___________ is an example of a deferred expense.<\/span><\/p>\n

Unearned revenue<\/span><\/p>\n

Accounts payable<\/span><\/p>\n

Prepaid advertising<\/span><\/p>\n

Accounts receivable<\/span><\/p>\n

Question 13. Question : Using accrual accounting, expenses are recorded and reported only<\/span><\/p>\n

When they are incurred and paid at the same time<\/span><\/p>\n

When they are incurred, whether or not cash is paid<\/span><\/p>\n

If they are paid before they are incurred<\/span><\/p>\n

If they are paid after they are incurred<\/span><\/p>\n

Question 14. Question : Which of the following is an example of a deferred expense?<\/span><\/p>\n

Prepaid advertising<\/span><\/p>\n

Unearned revenue<\/span><\/p>\n

Accounts payable<\/span><\/p>\n

Accounts receivable<\/span><\/p>\n

Question 15. Question : Which transaction would be recorded in a cash basis system of accounting?<\/span><\/p>\n

Purchase of equipment on credit<\/span><\/p>\n

Purchase of supplies on credit<\/span><\/p>\n

Sale of goods on credit<\/span><\/p>\n

Sale of goods for cash<\/span><\/p>\n

Question 16. Question : Accrued revenues would appear on the balance sheet as<\/span><\/p>\n

assets<\/span><\/p>\n

liabilities<\/span><\/p>\n

stockholders’ equity<\/span><\/p>\n

prepaid expenses<\/span><\/p>\n

Question 17. Question : Using accrual accounting, expenses are recorded and reported only when they are incurred, whether or not cash is paid, under the cash basis expenses are recorded:<\/span><\/p>\n

When they are incurred and paid at the same time<\/span><\/p>\n

If they are paid before they are incurred<\/span><\/p>\n

If they are paid after they are incurred<\/span><\/p>\n

When they are paid<\/span><\/p>\n

Question 18. Question : When preparing an adjustment under accrual accounting, what would be the proper amount of the adjusting entry if the end of the period balance in the supply account is $4,000 and the amount of supplies on hand is $1650?<\/span><\/p>\n

3,350<\/span><\/p>\n

2,350<\/span><\/p>\n

3,050<\/span><\/p>\n

5,650<\/span><\/p>\n

Points Received: 0 of 2<\/span><\/p>\n

Question 19. Question : __________ is\/are created when a revenue or expense has NOT been recorded by the end of the accounting period.<\/span><\/p>\n

Prepaid advertising<\/span><\/p>\n

Premiums received in advance<\/span><\/p>\n

Unearned revenue<\/span><\/p>\n

Accruals<\/span><\/p>\n

Question 20. Question : If prepaid insurance expires over time, this asset account becomes a (n)<\/span><\/p>\n

liability<\/span><\/p>\n

another asset<\/span><\/p>\n

revenue<\/span><\/p>\n

expense<\/span><\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Question Question 1. Question : Depreciation Expense and Accumulated Depreciation are classified, respectively, as expense and contra asset asset and contra liability revenue and asset contra asset and expense Question 2. Question : Which type(s) of adjustments are the financial statements affected by? Deferrals Accruals Both deferrals and accruals Neither deferrals nor accruals Question 3. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-23698","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/23698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=23698"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/23698\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=23698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=23698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=23698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}