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    Chapter 3-The Adjusting Process: True/False

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    Chloe Gabriel Evangeline Chase
    This document contains a series of true/false questions about adjusting entries and the adjusting process. Specifically, it addresses how omitting various adjusting entries would impact financial statements, how adjusting entries are dated, potential errors that could be detected in an adjusted trial balance, and the purpose of an adjusted trial balance. The key ideas covered are that adjusting entries are necessary to accurately reflect accruals, deferrals, and other period-end items in order to prepare financial statements that comply with GAAP.

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    © All Rights Reserved
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    Chapter 3-The Adjusting Process: True/False

    Uploaded by

    Chloe Gabriel Evangeline Chase
    106 views2 pages
    This document contains a series of true/false questions about adjusting entries and the adjusting process. Specifically, it addresses how omitting various adjusting entries would impact financial statements, how adjusting entries are dated, potential errors that could be detected in an adjusted trial balance, and the purpose of an adjusted trial balance. The key ideas covered are that adjusting entries are necessary to accurately reflect accruals, deferrals, and other period-end items in order to prepare financial statements that comply with GAAP.

    Original Description:

    Chapter 3

    Original Title

    007-Chapter3

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    This document contains a series of true/false questions about adjusting entries and the adjusting process. Specifically, it addresses how omitting various adjusting entries would impact financial statements, how adjusting entries are dated, potential errors that could be detected in an adjusted trial balance, and the purpose of an adjusted trial balance. The key ideas covered are that adjusting entries are necessary to accurately reflect accruals, deferrals, and other period-end items in order to prepare financial statements that comply with GAAP.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    106 views2 pages

    Chapter 3-The Adjusting Process: True/False

    Uploaded by

    Chloe Gabriel Evangeline Chase
    This document contains a series of true/false questions about adjusting entries and the adjusting process. Specifically, it addresses how omitting various adjusting entries would impact financial statements, how adjusting entries are dated, potential errors that could be detected in an adjusted trial balance, and the purpose of an adjusted trial balance. The key ideas covered are that adjusting entries are necessary to accurately reflect accruals, deferrals, and other period-end items in order to prepare financial statements that comply with GAAP.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Chapter 3—The Adjusting Process

    TRUE/FALSE
    39.If the adjustment for accrued salaries at the end of the period is inadvertently omitted, both liabilities and
    owner's equity will be understated for the period.

    ANS: T PTS: 1 DIF: Difficult OBJ: 03-03


    NAT: AACSB Analytic | AICPA FN-Measurement | ACBSP-APC-07-Adjusting Entries

    40. If the adjustment to recognize expired insurance at the end of the period is inadvertently omitted, the
    assets at the end of the period will be understated.

    ANS: F PTS: 1 DIF: Difficult OBJ: 03-03


    NAT: AACSB Analytic | AICPA FN-Measurement | ACBSP-APC-07-Adjusting Entries

    41. If the adjustment of the unearned rent account at the end of the period to recognize the amount of rent
    earned is inadvertently omitted, the net income for the period will be understated.

    ANS: T PTS: 1 DIF: Difficult OBJ: 03-03


    NAT: AACSB Analytic | AICPA FN-Measurement | ACBSP-APC-07-Adjusting Entries

    42. If the adjustment for depreciation for the year is inadvertently omitted, the assets on the balance sheet at
    the end of the period will be understated.

    ANS: F PTS: 1 DIF: Difficult OBJ: 03-03


    NAT: AACSB Analytic | AICPA FN-Measurement | ACBSP-APC-07-Adjusting Entries

    43. Adjusting journal entries are dated on the last day of the period.

    ANS: T PTS: 1 DIF: Easy OBJ: 03-03


    NAT: AACSB Analytic | AICPA FN-Measurement | ACBSP-APC-07-Adjusting Entries

    44. By ignoring and not posting the adjusting journal entries to the appropriate accounts, net income will
    always be overstated.

    ANS: F PTS: 1 DIF: Moderate OBJ: 03-03


    NAT: AACSB Analytic | AICPA FN-Measurement | ACBSP-APC-07-Adjusting Entries

    45. The financial statements are prepared from the unadjusted trial balance.

    ANS: F PTS: 1 DIF: Easy OBJ: 03-04


    NAT: AACSB Analytic | AICPA FN-Measurement | ACBSP-APC-09-Financial Statements

    46. The adjustment for accrued fees was debited to Accounts Payable instead of Accounts Receivable. This
    error will be detected when the Adjusted Trial Balance is prepared.

    ANS: F PTS: 1 DIF: Easy OBJ: 03-04


    NAT: AACSB Analytic | AICPA FN-Measurement

    47. The adjusted trial balance verifies that total debits equals total credits before the adjusting entries are
    prepared.

    ANS: F PTS: 1 DIF: Easy OBJ: 03-04


    NAT: AACSB Analytic | AICPA FN-Measurement

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