CFR 1 - Exam 1 with all Correct & 100% Verified Answers
|Latest Version |Already Graded A+
Providing services to customers on account would be recorded with a: ✔Correct Answer-debit
to an asset
The journal entry to record the borrowing of cash and the signing of a note payable invoice:
✔Correct Answer-a debit to cash and credit to note payable
The reason we post journal entries is to: ✔Correct Answer-reflect the information in journal
entries in ledger accounts
We can state the accounting equations for a corporation as: ✔Correct Answer-A - L - SE = 0
Which of the following adjusting entries causes a decrease in assets? ✔Correct Answer-
Recording depreciation expense
Which of the following adjusting entries causes an increase in liabilities? ✔Correct Answer-
Accruing unrecorded interest expense
If the required adjusting entry for prepaid rent that has expired for the period is omitted:
✔Correct Answer-Assets will be overstated and net income will be overstated
The correct amount of prepaid insurance shown in a company's December 31, 2023, balance
sheet was $900. On July 1, 2024, the company paid an additional insurance premium of $600. In
the December 31, 2024, balance sheet, the amount of prepaid insurance was correctly shown
as $500. The amount of insurance expense that should appear in the company's 2024 income
statement is: ✔Correct Answer-$1,000
On December 31, 2024, the end of Larry's Used Cars' first year of operations, the accounts
receivable was $53,600. The company estimates that $1,200 of the year-end receivables will not
be collected. Net accounts receivable in the 2024 balance sheet will be valued at: ✔Correct
Answer-$52,400
Accounts Receivable - allowance for doubtful accounts
The Wazoo Company reported an $11,200 liability in its 2023 balance sheet for subscription
revenue received in advance. During 2024, $62,000 was received from customers for
subscriptions and the 2024 income statement reported subscription revenue of $63,700. What
is the liability amount for deferred subscription revenue that will appear in the 2024 balance
sheet? ✔Correct Answer-$9,500
$11,200(beginning balance)+$62,000(additional receipts) - $63,700(subscription revenue
recognized)
|Latest Version |Already Graded A+
Providing services to customers on account would be recorded with a: ✔Correct Answer-debit
to an asset
The journal entry to record the borrowing of cash and the signing of a note payable invoice:
✔Correct Answer-a debit to cash and credit to note payable
The reason we post journal entries is to: ✔Correct Answer-reflect the information in journal
entries in ledger accounts
We can state the accounting equations for a corporation as: ✔Correct Answer-A - L - SE = 0
Which of the following adjusting entries causes a decrease in assets? ✔Correct Answer-
Recording depreciation expense
Which of the following adjusting entries causes an increase in liabilities? ✔Correct Answer-
Accruing unrecorded interest expense
If the required adjusting entry for prepaid rent that has expired for the period is omitted:
✔Correct Answer-Assets will be overstated and net income will be overstated
The correct amount of prepaid insurance shown in a company's December 31, 2023, balance
sheet was $900. On July 1, 2024, the company paid an additional insurance premium of $600. In
the December 31, 2024, balance sheet, the amount of prepaid insurance was correctly shown
as $500. The amount of insurance expense that should appear in the company's 2024 income
statement is: ✔Correct Answer-$1,000
On December 31, 2024, the end of Larry's Used Cars' first year of operations, the accounts
receivable was $53,600. The company estimates that $1,200 of the year-end receivables will not
be collected. Net accounts receivable in the 2024 balance sheet will be valued at: ✔Correct
Answer-$52,400
Accounts Receivable - allowance for doubtful accounts
The Wazoo Company reported an $11,200 liability in its 2023 balance sheet for subscription
revenue received in advance. During 2024, $62,000 was received from customers for
subscriptions and the 2024 income statement reported subscription revenue of $63,700. What
is the liability amount for deferred subscription revenue that will appear in the 2024 balance
sheet? ✔Correct Answer-$9,500
$11,200(beginning balance)+$62,000(additional receipts) - $63,700(subscription revenue
recognized)
