Question 1

To record revenue that has been received but not yet earned, an entry is made that increases a liability account.

Accepted Answer

A) True 
 B)False  True

Question 2

Select the one term that best fits each definition
-Interest incurred but not yet paid.

Accepted Answer

A)  accrual 
B)  accrued interest expense 
C)  accrued expenses 
D)  deferral 
E)  deferred expenses
F) deferred revenue
G) reversing entry 
A)  accrual 
B)  accrued interest expense 
C)  accrued expenses 
D)  deferral 
E)  deferred expenses
F) deferred revenue
G) reversing entry B

Question 3

Select the one term that best fits each definition
-Cash received for goods or services which have not yet been provided.

Accepted Answer

A)  accrual 
B)  accrued interest expense 
C)  accrued expenses 
D)  deferral 
E)  deferred expenses
F) deferred revenue
G) reversing entry 
A)  accrual 
B)  accrued interest expense 
C)  accrued expenses 
D)  deferral 
E)  deferred expenses
F) deferred revenue
G) reversing entry F

Question 4

Select the one term that best fits each definition
-Expenses incurred in one fiscal period but not paid until a later fiscal period.

Accepted Answer

A)  accrual 
B)  accrued interest expense 
C)  accrued expenses 
D)  deferral 
E)  deferred expenses
F) deferred revenue
G) reversing entry 
A)  accrual 
B)  accrued interest expense 
C)  accrued expenses 
D)  deferral 
E)  deferred expenses
F) deferred revenue
G) reversing entry

Question 5

When reversing entries are used and a note payable that was signed in a previous fiscal period is paid,

Accepted Answer

A)  Interest Payable is credited for the amount of interest incurred in the current fiscal year. 
B)  Interest Payable is credited for the total amount of interest incurred during the full term of the note. 
C)  Interest Expense is debited for the amount of interest incurred in the current fiscal year. 
D)  Interest Expense is debited for the total amount of interest incurred during the full term of the note. 
A)  Interest Payable is credited for the amount of interest incurred in the current fiscal year. 
B)  Interest Payable is credited for the total amount of interest incurred during the full term of the note. 
C)  Interest Expense is debited for the amount of interest incurred in the current fiscal year. 
D)  Interest Expense is debited for the total amount of interest incurred during the full term of the note.

Question 6

An expense that is paid in advance is recorded as an asset until the expense is incurred.

Accepted Answer

A) True 
 B)False

Question 7

After adjustments at the end of a fiscal period, the balance in Unearned Rent Income represents the rent still unearned.

Accepted Answer

A) True 
 B)False

Question 8

The adjusting entry for deferred rent income results in a debit to Rent Income.

Accepted Answer

A) True 
 B)False

Question 9

An adjusting entry normally is reversed if the adjusting entry creates a balance in

Accepted Answer

A)  a revenue or expense account. 
B)  a revenue and liability account. 
C)  an expense and asset account. 
D)  an asset or liability account. 
A)  a revenue or expense account. 
B)  a revenue and liability account. 
C)  an expense and asset account. 
D)  an asset or liability account.

Question 10

The adjusting entry for accrued interest expense is

Accepted Answer

A)  debit Interest Payable; credit Interest Expense. 
B)  debit Interest Expense; credit Interest Payable. 
C)  debit Interest Expense; credit Income Summary. 
D)  debit Income Summary; credit Interest Expense. 
A)  debit Interest Payable; credit Interest Expense. 
B)  debit Interest Expense; credit Interest Payable. 
C)  debit Interest Expense; credit Income Summary. 
D)  debit Income Summary; credit Interest Expense.

Question 11

Accounting procedures require that revenue and expenses be recorded in the accounting period in which revenue is earned and expenses are incurred.

Accepted Answer

A) True 
 B)False

Question 12

After adjustments at the end of a fiscal period, the balance in Prepaid Rent represents the amount of rent expense for the current fiscal period.

Accepted Answer

A) True 
 B)False

Question 13

The entry to journalize the adjusting entry for unearned rent revenue that has now been earned is

Accepted Answer

A)  debit Rent Income; credit Unearned Rent Income. 
B)  debit Unearned Rent Income; credit Income Summary. 
C)  debit Income Summary; credit Unearned Rent Income. 
D)  debit Unearned Rent Income; credit Rent Income. 
A)  debit Rent Income; credit Unearned Rent Income. 
B)  debit Unearned Rent Income; credit Income Summary. 
C)  debit Income Summary; credit Unearned Rent Income. 
D)  debit Unearned Rent Income; credit Rent Income.

Question 14

The entry to journalize the reversing entry for accrued interest expense is

Accepted Answer

A)  debit Income Summary; credit Interest Expense. 
B)  debit Interest Payable; credit Income Summary. 
C)  debit Interest Expense; credit Income Summary. 
D)  debit Interest Payable; credit Interest Expense. 
A)  debit Income Summary; credit Interest Expense. 
B)  debit Interest Payable; credit Income Summary. 
C)  debit Interest Expense; credit Income Summary. 
D)  debit Interest Payable; credit Interest Expense.

Question 15

The reversing entry for accrued interest income increases the balance of Interest Receivable.

Accepted Answer

A) True 
 B)False

Question 16

The entry to journalize an adjusting entry for interest income is

Accepted Answer

A)  debit Income Summary; credit Interest Income. 
B)  debit Interest Income; credit Income Summary. 
C)  debit Interest Income; credit Interest Receivable. 
D)  debit Interest Receivable; credit Interest Income. 
A)  debit Income Summary; credit Interest Income. 
B)  debit Interest Income; credit Income Summary. 
C)  debit Interest Income; credit Interest Receivable. 
D)  debit Interest Receivable; credit Interest Income.

Question 17

The closing entry for interest income is

Accepted Answer

A)  debit Income Summary; credit Interest Income. 
B)  debit Interest Income; credit Income Summary. 
C)  debit Interest Income; credit Interest Receivable. 
D)  debit Interest Receivable; credit Interest Income. 
A)  debit Income Summary; credit Interest Income. 
B)  debit Interest Income; credit Income Summary. 
C)  debit Interest Income; credit Interest Receivable. 
D)  debit Interest Receivable; credit Interest Income.

Question 18

The reversing entry for accrued interest expense increases the balance of Interest Payable.

Accepted Answer

A) True 
 B)False

Question 19

The adjusting entry for prepaid rent is

Accepted Answer

A)  debit Income Summary; credit Rent Expense. 
B)  debit Rent Expense; credit Income Summary. 
C)  debit Rent Income; credit Prepaid Rent. 
D)  debit Rent Expense; credit Prepaid Rent. 
A)  debit Income Summary; credit Rent Expense. 
B)  debit Rent Expense; credit Income Summary. 
C)  debit Rent Income; credit Prepaid Rent. 
D)  debit Rent Expense; credit Prepaid Rent.

Question 20

Select the one term that best fits each definition
-An entry recording revenue before the cash is received, or an expense before the cash is paid.

Accepted Answer

A)  accrual 
B)  accrued interest expense 
C)  accrued expenses 
D)  deferral 
E)  deferred expenses
F) deferred revenue
G) reversing entry 
A)  accrual 
B)  accrued interest expense 
C)  accrued expenses 
D)  deferral 
E)  deferred expenses
F) deferred revenue
G) reversing entry

Exam 21: Accruals, Deferrals, and Reversing Entries

To record revenue that has been received but not yet earned, an entry is made that increases a liability account.

Select the one term that best fits each definition -Interest incurred but not yet paid.

Select the one term that best fits each definition -Cash received for goods or services which have not yet been provided.

Select the one term that best fits each definition -Expenses incurred in one fiscal period but not paid until a later fiscal period.

When reversing entries are used and a note payable that was signed in a previous fiscal period is paid,

An expense that is paid in advance is recorded as an asset until the expense is incurred.

After adjustments at the end of a fiscal period, the balance in Unearned Rent Income represents the rent still unearned.

The adjusting entry for deferred rent income results in a debit to Rent Income.

An adjusting entry normally is reversed if the adjusting entry creates a balance in

The adjusting entry for accrued interest expense is

Accounting procedures require that revenue and expenses be recorded in the accounting period in which revenue is earned and expenses are incurred.

After adjustments at the end of a fiscal period, the balance in Prepaid Rent represents the amount of rent expense for the current fiscal period.

The entry to journalize the adjusting entry for unearned rent revenue that has now been earned is

The entry to journalize the reversing entry for accrued interest expense is

The reversing entry for accrued interest income increases the balance of Interest Receivable.

The entry to journalize an adjusting entry for interest income is

The closing entry for interest income is

The reversing entry for accrued interest expense increases the balance of Interest Payable.

The adjusting entry for prepaid rent is

Select the one term that best fits each definition -An entry recording revenue before the cash is received, or an expense before the cash is paid.

The Accounting Equation

Debit and Credit Parts

Journalizing Transactions

Posting to a General Ledger

Cash Control Systems

Work Sheet and Adjusting Entries

Financial Statements for a Proprietorship

Closing Entries and Post-Closing

Accounting for Purchases and Cash Payments

Accounting for Sales and Cash Receipts

Using a General Journal

Preparing Payroll Records

Accounting for Payroll and Payroll Taxes

Uncollectible Accounts Receivable

Adjusting Entries and a Trial Balance

Financial Statements and Closing Entries

Financial Statement Analysis

Acquiring Capital for Growth and Development

Plant Assets and Intangible Assets

Accounting for Inventory

End-Of-Fiscal-Period Work for a Corporation

Accounting for Partnerships

Recording International and Internet Sales

Service Business Organized As a Proprietorship

Merchandising Business As a Corporation

Additional Accounting Procedures

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