T/F Accrued expenses are expenses that have already been paid.
Answer: False
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Accounting 2000 Chapter 4
- A company's monthly bank statement shows a collection of a note receivable by the bank in the amount of $500. Which of the following is one part of the journal entry needed to record the note collection by the company?
- For which of the following will an adjusting entry be required as the result of a bank reconciliation?
- Springer Company listed outstanding checks totaling $4,500 on its September bank reconciliation. In October, the company issued checks totaling $45,700. The October bank statement shows that checks totaling $39,800 cleared the bank. In addition, a check from one of Springer's customers in the amount of $500 was returned as NSF. The outstanding checks on the October bank reconciliation should total
- For which item below might a bank issue a credit memorandum to a depositor's account?
- T/F Deposits in transit are added to the cash balance per books on the bank reconciliation.
- Which of the following is classified in an income statement as a nonoperating activity?
- What type of accounts are Sales Returns and Allowances and Sales Discounts?
- In a perpetual inventory system, which accounts will the seller credit when merchandise is returned by a customer?
- On what amount is a sales discount based?
- Which of the following items does not result in an entry to the Inventory account under a perpetual system?
- Which of the following is not a typical example of an accrued expense?
- T/F Prior to an accrual adjustment, the revenue account (and the related asset account) or the expense account (and the related liability account) is understated.
- At December 31, 2017, before any year-end adjustments, Mccarty Company's Prepaid Insurance account had a balance of $2,700. It was determined that $1,500 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be
- Ignatenko Company purchased office supplies costing $5,000 and debited Supplies for the full amount. Supplies on hand at the end of the accounting period were $1,300. The appropriate adjusting journal entry to be made would be
- Adjustments for prepaid expenses
- Adjustments for unearned revenues
- Cash received before services are preformed are recorded as?
- The difference between an asset's cost and its accumulated depreciation is called
- Which of the following is not a typical example of a prepaid expense?
- T/F Book value is equal to cost minus accumulated depreciation.
- Which one of the following is not a justification for adjusting entries?
- In 2017, Costello Company performs work for a customer and bills the customer $10,000; it also pays expenses of $3,000. The customer pays Costello in 2018. If Costello uses the accrual-basis of accounting, then Costello will report
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