MBA700: Exam 2 Questions and Answers
100% Pass
expense should be recognized in the period incurred -
CORRECT ANSWER: the expense recognition principle states that:
QUESTION: adjusting entries -
CORRECT ANSWER: always involve at least one revenue/expense
and one balance sheet account
QUESTION: adjusted trial balance -
CORRECT ANSWER: a list of all accounts and their balances after
adjusting entries
QUESTION: Debit Supplies Expense $2,800, credit Supplies $2,800 -
,CORRECT ANSWER: At the beginning of December, LSUS
Corporation had $1,000 in supplies on hand. During the month, supplies
purchased amounted to $2,000, but by the end of the month the
supplies balance was only $200. What is the appropriate month-end
adjusting entry?
QUESTION: a prepaid expense -
CORRECT ANSWER: Making insurance payments in advance is an
example of:
QUESTION: Debit accounts receivable for 2,000; Credit consulting
services for 2,000 -
CORRECT ANSWER: LSUS Consulting provides 3 months consulting
service for 6,000 to Scheinert Inc. starting Jan 1, 2023. Please assume
service are performed evenly throughout months. On Jan 31, 2023
LSUS prepare a financial statement, what would LSUS consulting record
as the adjusting entry for this consulting work on Jan 31, 2023?
, QUESTION: debit insurance Expense, $3,600; credit prepaid Insurance
$3,600. -
CORRECT ANSWER: On April 1, a $4,800 premium on a one-year
insurance policy on equipment was paid and charged to Prepaid
Insurance. At the end of the year, the adjusting entry would be:
QUESTION: Debit unearned revenue by $4,000, credit service revenue
by $4,000 -
CORRECT ANSWER: On September 1, 2022, LSUS Magazine sold
100 one-year subscriptions for $120 each. The total amount received
was credited to Unearned Revenue. What would be the required
adjusting entry at December 31, 2022?
QUESTION: Debit depreciation expense for $2,000; credit accumulated
depreciation for $2,000 -
CORRECT ANSWER: At beginning of year 1, LSUS purchased a
$10,000 manufacturing equipment that is estimated to be used for five
years. (no residue value after five years) If the equipment is going to be
100% Pass
expense should be recognized in the period incurred -
CORRECT ANSWER: the expense recognition principle states that:
QUESTION: adjusting entries -
CORRECT ANSWER: always involve at least one revenue/expense
and one balance sheet account
QUESTION: adjusted trial balance -
CORRECT ANSWER: a list of all accounts and their balances after
adjusting entries
QUESTION: Debit Supplies Expense $2,800, credit Supplies $2,800 -
,CORRECT ANSWER: At the beginning of December, LSUS
Corporation had $1,000 in supplies on hand. During the month, supplies
purchased amounted to $2,000, but by the end of the month the
supplies balance was only $200. What is the appropriate month-end
adjusting entry?
QUESTION: a prepaid expense -
CORRECT ANSWER: Making insurance payments in advance is an
example of:
QUESTION: Debit accounts receivable for 2,000; Credit consulting
services for 2,000 -
CORRECT ANSWER: LSUS Consulting provides 3 months consulting
service for 6,000 to Scheinert Inc. starting Jan 1, 2023. Please assume
service are performed evenly throughout months. On Jan 31, 2023
LSUS prepare a financial statement, what would LSUS consulting record
as the adjusting entry for this consulting work on Jan 31, 2023?
, QUESTION: debit insurance Expense, $3,600; credit prepaid Insurance
$3,600. -
CORRECT ANSWER: On April 1, a $4,800 premium on a one-year
insurance policy on equipment was paid and charged to Prepaid
Insurance. At the end of the year, the adjusting entry would be:
QUESTION: Debit unearned revenue by $4,000, credit service revenue
by $4,000 -
CORRECT ANSWER: On September 1, 2022, LSUS Magazine sold
100 one-year subscriptions for $120 each. The total amount received
was credited to Unearned Revenue. What would be the required
adjusting entry at December 31, 2022?
QUESTION: Debit depreciation expense for $2,000; credit accumulated
depreciation for $2,000 -
CORRECT ANSWER: At beginning of year 1, LSUS purchased a
$10,000 manufacturing equipment that is estimated to be used for five
years. (no residue value after five years) If the equipment is going to be
