please answer no. 6 and 7, thank you! 6. Which of the following is least likely to be an adjusting entry?a. The entry to accrue salaries already earned by theemployees but not yet paid by the company.b. The entry to record the annual depreciation of equipmentat year-end.c. The entry to recognize the earned portion of an advancedС.collection of income.d. The entry to record the temporary withdrawals of theowner from the business.7. Which of the following is most likely to be an adjusting entry?a. The entry to record the prepayment of insurance.b. The entry to record the advanced collection of rentincome.The entry to record a sale on account.d. The entry to record doubtful accounts expense.C.

solution note : dear student as per the Q&A guideline we are required to answer the first…

6. Which of the following is least likely to be an adjusting entry a. The entry to accrue salaries already earned by employees but not yet paid by the company. b. The entry to record the annual depreciation of equipm at year-end. The entry to recognize the earned portion of an advanc С. collection of income. d. The entry to record the temporary withdrawals of Owner from the bus

6. Which of the following is least likely to be an adjusting entry a. The entry to accrue salaries already earned by employees but not yet paid by the company. b. The entry to record the annual depreciation of equipm at year-end. The entry to recognize the earned portion of an advanc С. collection of income. d. The entry to record the temporary withdrawals of Owner from the bus

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 9MC: Which of the following is the principle that a company must recognize revenue in the period in which...

See similar textbooks

Similar questions

If the income statement error is discovered in the year of error, what action is to be done by the entity? a. Reclassify the item to its proper nominal account. b. Reclassify the item to real account. c. Adjust the effect to the retained earnings account. d. Ignore the error.
An example of an item that should be reported as a prior-period adjustment in a company’s annual financial statements is a. a settlement resulting from litigation. b. an adjustment of income taxes. c. a correction of an error that occurred in a prior period. d. an adjustment of utility revenue because of rate revisions ordered by a regulatory commission.
Which of the following adjusting entries involves the recognition of an accrued expense? a. recording depreciation on a long-lived asset b. writing off the portion of an insurance policy that has expired c. recognition of salaries owed to employees for work done during the current period that will be paid during the next accounting period d. recognition of bad debt losses that are expected to result from making sales on credit terms
Which of the following is the principle that a company must recognize revenue in the period in which it is earned; it is not considered earned until a product or service has been provided? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
Which of the following best describes the proper accounting for interim financial reports? a. The interim period is viewed as an integral part of the annual accounting period. b. The interim period is viewed as a distinct, independent accounting period. c. Interim net income should be determined by using the same principles as those for the annual accounting period. d. Net income should be computed on the cash basis except for sales, cost of goods sold, and depreciation.
required: 1.By how much would the December 31, 2021 retained earnings be misstated ifno adjustments were made for the above errors? 2.Compute for the adjusted net income for the year 2021.
If the income statement error is discovered in a subsequent accounting period, what action is to be done by the entity? Group of answer choices a. Reclassify the item to its proper nominal account and restate the income statement of the prior year affected by the error. b. Restate the income statement of the prior year affected by the error. c. No reclassifying entry is necessary but restate the income statement of the prior year affected by the error. d. Reclassify the item to its proper nominal account. Recording of next year's sales as sales of the current year will Group of answer choices a. overstate net income of next year b. not affect retained earnings at the end of next year c. understate retained earnings at the end of the current year d. understate net income of the current year
What is the impact of prepaid expenses before year end adjusting entries. The answer is A . Understate assets and overstate expenses . B . Overstate liabilities and understate expenses. C. Overstate assets and understate expenses . D. Understate liabilities and overstate expenses.
If a company makes a prior period adjustment, which of the following describes how it must be reported? 1.The adjustment is recorded in retained earnings, and previous years' financial statements presented for comparative purposes are not changed 2.The adjustment is recorded in retained earnings, and previous years' financial statements presented for comparative purposes are adjusted. 3.The adjustment is recorded as a deferred asset or deferred liability and amortized using the straight-line method. 4.The adjustment is reported in the current period's income statement as a separate item.
Which of the following accounts would not appear in aclosing journal entry?a. Interest Revenueb. Accumulated Depreciationc. Retained Earningsd. Salaries and Wages Expense
When an advance collection of income has been recorded under the liability method, an adjusting entry is needed to recognize the increase in the balance of the real account. O decrease in the balance of the nominal account. earned portion of the precollection O unearned portion of the precollection.
What is the impact of accrued expenses before year end adjusting entries ? The answer is .A. Understate expenses and understate liabilities. B. Understate assets and understate expenses . C. Overstate assets and understate expenses . D. Understate expenses and overstate liabilities.