Which element is not part of the fraud triangle? The Accumulated Depreciation account is a(n): How does the adjustment for depreciation differ from other deferral adjustments? However, the net effect of ignoring these changes could be the reporting of amounts in the wrong line items in the financial statements, which could be misleading to the users of those statements. This must mean that a(n): revenue account was increased by the same amount. The cashier uses the cash register and its accompanying point-of-sale accounting system to perform three important functions. an asset account is decreased and an expense is recorded. Which of the following is not an example of internal control? C) Adjusting entries can be used to record both accrued expenses and accrued revenues. Which of the following statements is correct? Which of the following statements is correct regarding reporting comprehensive income? After the adjustments have been completed, the adjusted balance in the Supplies Expense account represents the cost of supplies: A company started the year with $1,500 of supplies on hand. Accounting staff then ensure the receipts from cash sales are properly recorded in the accounting system. a. Retained Earnings is a permanent account; income statement accounts are temporary. After the adjustments have been completed, the adjusted balance in the Interest Payable account represents: interest that has accrued, but has not been paid, at the end of the period. From the creditor's perspective, what is the purpose of loan covenants? To calculate the company's income tax expense for the current period, it is necessary to know the company's: adjusted income (before income taxes) and the company's tax rate. Depreciation contains depreciation since the asset was purchased. On December 31, 2016, the balance in Retained Earnings is $19,100. The adjusting journal entry, dated March 31, to record unpaid wages and salaries owed since March 25 will include a debit to. A company makes a deferral adjustment that decreased a liability. What is the company's net income? If inventory is sold with terms of FOB destination, the goods belong to the seller until they reach their destination. Baylor Service Corp. redeemed $1,000 of gift cards that customers used to pay for services that were performed by the company. Sonic Gateway purchased $1,000 of app software that is estimated to have four years of usefulness. The main purposes of internal controls include all of the following except: providing more favorable financial information. Which of the following statements is correct regarding the use of the cash account in deferral and accrual adjustments at the end of the accounting period? Which of the following is incorrect regarding the Income Tax Payable account? The accrual adjustment recorded to adjust for expenses incurred but not yet paid will cause: A deferral adjusting entry that adjusts assets (such as prepaids and supplies): expenses the amount used during the period. Which of the following statements about the post-closing trial balance is correct? Adjustments help to ensure that all ______ are recorded in the period in which they are incurred. What is the amount of rent expense that will be recorded in the related adjusting entry dated June 30? a. Which of the following is not related to the segregation of duties for cash received in person? assets and revenues or increasing liabilities and expenses. This equals $125 per month (1500 / 12) Deferral adjustments are required to update previously recorded items whereas accrual adjustments are required to include items not previously recorded. 14) Which of the following statements is correct regarding adjustments? Wiggly Pet Store had $6,000 of supplies at the end of October. 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