accounting-cycle-financial-statements — Financial Accounting Practice Questions

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1. If employees work 8 hours per day, what is the required wage accrual?
2. Which of the following describes the immediate impact on the accounting equation?
3. What is the necessary adjusting journal entry?
4. Which of the following accounts is a temporary (nominal) account that must be closed to zero at the end of the
5. What is the balance in the Prepaid Insurance account on the December 31 Balance Sheet?
6. Under ASC 842, a lessee classifies a lease as 'Operating'. How is the periodic lease expense typically recogni
7. A company holds an investment in bonds classified as 'Availa… — Where is this gain reported under ASC 320?
8. Which of the following correctly identifies all the items classified as current assets on a classified balance
9. Under the accrual basis of accounting, when should Aurora Logistics recognize the $40,000 in revenue?
10. What is the initial lease liability recorded on the balance sheet?
11. What is the final entry to record the share issuance?
12. If the interest is paid annually and 3 months have elapsed since the last payment, what is the required adjust
13. What was the Supplies Expense for the month?
14. Westwood Manufacturing takes an unrealized loss of $50,000 o… — Where is this loss reported under US GAAP?
15. What is the correct amount of Revenue to be recognized in the Income Statement?
16. What is the Net Deferred Tax Asset reported on the balance sheet?
17. A firm has $50,000 of available-for-sale (AFS) debt securiti… — How is this $2,000 gain reported?
18. What is the impact on the Balance Sheet on the declaration date (November 1)?
19. Under ASC 606, how should the remaining $7,000,000 be reported on the Year 1 Balance Sheet?
20. A software company spends $2,000,000 on R&D for a new produc… — How should these costs be recorded under ASC 9
21. What is the impact on the income statement and balance sheet at the end of Year 1?
22. A company holds debt securities classified as 'Available-for… — Ignoring taxes, how is this $5,000 increase re
23. When a company 'closes the books', which of the following accounts will be reset to a zero balance?
24. In the 'Significant Influence' category of equity investments (20-50% ownership), how are dividends received b
25. What is the 'Unearned Revenue' balance on the December 31 Balance Sheet?
26. Which of the following accounts would have its balance reported on a 'Post-Closing Trial Balance'?
27. What is the required adjusting entry on December 31 to comply with the matching principle?
28. What is the immediate impact on the accounting equation?
29. According to ASC 842, a company enters into a 5-year operati… — How does this impact the Balance Sheet at comm
30. A bond with a face value of 1,000 is issued at 103. The journal entry to record this issuance includes: