At the end of the fiscal year, the usual adjusting entry to prepaid insurance to record expired insurance was omitted. Which of the following is true?
Total assets at the end of the yea will be understated
Stockholders equity at the end of the year will be understated
Net income for the year will be overstated
Insurance expense will be overstated
Adjusting entries affect at least one?
Income statement account and one balance sheet
Revenue and the drawing account
Asset and one owner's equity account
Revenue and one capital account
Which of the following pairs of accounts could not appear in the same adjusting entry?
Service revenue and unearned revenue
Interest income and interest expense
Rent expense and prepaid rent
Salaries payable and salaries expense
A company pays an employee 1,000 for a 5 day work wek, mon-fri. The adjusting entry on dec 31 which is wed is a debit, wages expense, $200 and credit wages payable, $200
True or False?
The balance in the prepaid insurance account beofre adjustment at the end of the year is $10,000. If the additional data for the adjusting entry is (1) the amount of insurance expired during the year is $8500, as compared to additional data stating (@) the amount of unexpires insurance applicable to a future period is $1500 for the adjusting entry.
Which of the following would be true?
The debit and credit amount for (1) would be the same as (2) but the accounts would be different
The accounts for (1) would be the same as the accounts for (2) but the amounts would be different
The accounts and amounts would be the same for both
There is not enough information given to determine the correct accounts and amounts
True or false adjusting entries affect only expense and asset accounts
