Question 1

From the list of accounts below, determine whether the account would be a nominal account or a real account.
-Office Equipment

Accepted Answer

Office Equipment is a real account as it represents the tangible asset owned by the business. Real accounts are accounts that represent assets, liabilities, or equity and are permanent in nature. Nominal accounts, on the other hand, are accounts that represent expenses, revenues, gains, and losses and are temporary in nature.

Question 2

From the list of accounts below, determine whether the account would be a nominal account or a real account.
-Utilities Expense

Accepted Answer

Utilities Expense is a nominal account as it represents expenses incurred during the accounting period and is closed at the end of the period. Real accounts, on the other hand, represent assets, liabilities, or equity and are carried forward to the next accounting period.

Question 3

For each transaction select the letter of the type of adjustment that would be required.
-The cost of commissions to salesmen that has been earned, but not paid at the end of the accounting period is recorded

Accepted Answer

The cost of commissions to salesmen that has been earned, but not paid at the end of the accounting period represents an obligation to pay in the future (liability). Therefore, an accrued liability adjustment is required to recognize this expense in the appropriate period.

Question 4

From the list of accounts below, determine whether the account would be a nominal account or a real account.
-Unearned Revenue

Accepted Answer

Unearned Revenue is a real account because it represents a liability that has not yet been realized and is expected to be settled in the future through the delivery of goods or services.

Question 5

From the list of accounts below, determine whether the account would be a nominal account or a real account.
-Cash

Accepted Answer

Cash is a real account as it represents tangible assets that can be physically observed and counted. Real accounts are those that are permanent in nature and are not closed at the end of the accounting period.

Question 6

From the list of accounts below, determine whether the account would be a nominal account or a real account.
-Sales Revenue

Accepted Answer

Sales Revenue is a nominal account as it represents income earned during a specific period of time and is closed out at the end of the period.

Question 7

From the list of accounts below, determine whether the account would be a nominal account or a real account.
-Prepaid Rent

Accepted Answer

Prepaid Rent is a real account because it represents a tangible asset (prepaid rent expense) that is expected to provide future economic benefits. Real accounts are related to assets, liabilities or equity and are permanent accounts that carry over from one accounting period to the next.

Question 8

From the list of accounts below, determine whether the account would be a nominal account or a real account.
-Depreciation Expense

Accepted Answer

Depreciation Expense is considered a nominal account because it is an expense account and its balance is reset to zero at the end of each accounting period. Nominal accounts are used to track revenue and expenses, and are typically temporary in nature.

Question 9

From the list of accounts below, determine whether the account would be a nominal account or a real account.
-Interest Payable

Accepted Answer

Interest Payable is a liability account representing the amount of interest that is owed but has not yet been paid. It is classified as a real account because it represents a real obligation or asset at a point in time and carries over to the next accounting period until it is settled.

Question 10

A hospital corporation contracted with a private company to collect fees and maintain health facilities that adjoin their property.Users of the health facility can pay cash of $10 for a daily visit or they can purchase a pass.The pass has a magnetic strip that is swiped through the entrance device each time an individual enters the facility.This subtracts daily fee from the pass balance for each day used.The passes are issued for a fee of $365, which are good for 365 days.Refunds are not issued on the pass.Last year $18,650 was collected for daily visits, $438,000 of annual passes were issued, and $206,225 of pass usage was registered on the scanning equipment.How much should the company recognize as revenue for the year? Explain how the revenue recognition rule should be applied in this case.

Accepted Answer

The answer of A hospital corporation contracted with a private...

Quiz 4: Income Measurement and Accrual Accounting

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Office Equipment

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Utilities Expense

For each transaction select the letter of the type of adjustment that would be required. -The cost of commissions to salesmen that has been earned, but not paid at the end of the accounting period is recorded

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Unearned Revenue

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Cash

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Sales Revenue

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Prepaid Rent

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Depreciation Expense

From the list of accounts below, determine whether the account would be a nominal account or a real account. -Interest Payable