Question 1

Revenues, expenses and Dividends are called permanent accounts.

Accepted Answer

A) True 
 B)False

Question 2

The recording of depreciation is related to a(n):

Accepted Answer

A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue. 
A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue.

Question 3

The accounts that are NOT closed are:

Accepted Answer

A) Assets, Liabilities, and Revenues. 
B) Assets, Liabilities, and Stockholders' Equity. 
C) Assets, Liabilities, and Expenses. 
D) Revenues, Expenses and Dividends. 
A) Assets, Liabilities, and Revenues. 
B) Assets, Liabilities, and Stockholders' Equity. 
C) Assets, Liabilities, and Expenses. 
D) Revenues, Expenses and Dividends.

Question 4

During a recent week, incurred wages were $800. However, $480 of the wages had not been paid. Assume no other adjusting entries have been done this fiscal year. The adjusting entry for wages would be:

Accepted Answer

A) debit Wages Payable, $480; credit Wages Expense, $480. 
B) debit Wages Expense, $480; credit Wages Payable, $480. 
C) debit Wages Payable, $320; credit Wages Expense, $320. 
D) debit Wages Expense, $320; credit Wages Payable, $320. 
A) debit Wages Payable, $480; credit Wages Expense, $480. 
B) debit Wages Expense, $480; credit Wages Payable, $480. 
C) debit Wages Payable, $320; credit Wages Expense, $320. 
D) debit Wages Expense, $320; credit Wages Payable, $320.

Question 5

The balance of Retained Earnings on the adjusted trial balance does not represent the final Retained Earnings balance on the Balance Sheet.

Accepted Answer

A) True 
 B)False

Question 6

Of the following, which is NOT reported on the Balance Sheet?

Accepted Answer

A) cash 
B) equipment 
C) Depreciation Expense 
D) account payable 
A) cash 
B) equipment 
C) Depreciation Expense 
D) account payable

Question 7

The asset cost less accumulated depreciation equals salvage value.

Accepted Answer

A) True 
 B)False

Question 8

Allied, Inc. bought a 3-year insurance policy on August 1 for $3,900. Assume no other adjusting entries have been done this fiscal year. The adjusting entry on December 31 would be:

Accepted Answer

A) debit Insurance Expense, $108; credit Prepaid Insurance, $108. 
B) debit Prepaid Insurance, $108; credit Insurance Expense, $108. 
C) debit Insurance Expense, $542; credit Prepaid Insurance, $542. 
D) debit Prepaid Insurance, $542; credit Insurance Expense, $542. 
A) debit Insurance Expense, $108; credit Prepaid Insurance, $108. 
B) debit Prepaid Insurance, $108; credit Insurance Expense, $108. 
C) debit Insurance Expense, $542; credit Prepaid Insurance, $542. 
D) debit Prepaid Insurance, $542; credit Insurance Expense, $542.

Question 9

A company had a normal $51,000 cash balance on their adjusted trial balance. If revenues, expenses and dividends respectively were $91,000; $20,000 and $3,000 what amount of cash will be found on the post-closing trial balance?

Accepted Answer

A) $122,000 normal balance 
B) $51,000 normal balance 
C) $119,000 normal balance 
D) $165,000 normal balance 
A) $122,000 normal balance 
B) $51,000 normal balance 
C) $119,000 normal balance 
D) $165,000 normal balance

Question 10

The total revenues of $6,700, total expenses of $3,900 and dividends of $900 were recorded in the closing entries. The net income for the month was:

Accepted Answer

A) $5,800. 
B) $2,800. 
C) $1,900. 
D) $3,700. 
A) $5,800. 
B) $2,800. 
C) $1,900. 
D) $3,700.

Question 11

On January 1 Corporate Condos, Inc received $89,000 for one year's rent for building A. What would the adjusting entry be on March 31?

Accepted Answer

A) Debit Rent Expense $7,417, credit Prepaid Rent $7,417 
B) Debit Unearned Rent Revenue $7,417, credit Rent Revenue $7,417 
C) Debit Rent Expense $22,250, credit Prepaid Rent $22,250 
D) Debit Unearned Rent Revenue $22,250, credit Rent Revenue $22,250 
A) Debit Rent Expense $7,417, credit Prepaid Rent $7,417 
B) Debit Unearned Rent Revenue $7,417, credit Rent Revenue $7,417 
C) Debit Rent Expense $22,250, credit Prepaid Rent $22,250 
D) Debit Unearned Rent Revenue $22,250, credit Rent Revenue $22,250

Question 12

Item costs that have been incurred, but not yet paid, are called:

Accepted Answer

A) referrals. 
B) deferrals. 
C) accruals. 
D) non-cash items. 
A) referrals. 
B) deferrals. 
C) accruals. 
D) non-cash items.

Question 13

If a piece of equipment was purchased on September 1, it would have ________ months depreciation included in the adjusting entry for the calendar year.

Accepted Answer

A) 12 
B)  8 
C)  4 
D)  6 
A) 12 
B)  8 
C)  4 
D)  6

Question 14

The balance in the Supplies account on the adjusted trial balance:

Accepted Answer

A) is generally equal to the balance on the unadjusted trial balance. 
B) is generally greater than the balance on the unadjusted trial balance. 
C) is generally less than the balance on the unadjusted trial balance. 
D) has no relationship to the balance on the unadjusted trial balance. 
A) is generally equal to the balance on the unadjusted trial balance. 
B) is generally greater than the balance on the unadjusted trial balance. 
C) is generally less than the balance on the unadjusted trial balance. 
D) has no relationship to the balance on the unadjusted trial balance.

Question 15

At the beginning of the period, the Supplies account has a balance of $700. At the end of the period, the balance in the account was $475. The adjusting entry would be:

Accepted Answer

A) debit Supplies Expense, $475; credit Supplies, $475. 
B) debit Supplies, $475; credit Supplies Expense, $475. 
C) debit Supplies Expense, $225; credit Supplies, $225. 
D) debit Supplies, $225; credit Supplies Expense, $225. 
A) debit Supplies Expense, $475; credit Supplies, $475. 
B) debit Supplies, $475; credit Supplies Expense, $475. 
C) debit Supplies Expense, $225; credit Supplies, $225. 
D) debit Supplies, $225; credit Supplies Expense, $225.

Question 16

With a deferred expense, an expense is incurred first and cash is paid later.

Accepted Answer

A) True 
 B)False

Question 17

Supplies on hand were $800 at the start of the year. At the end of the year, it was determined that $450 of supplies had been used. What is the adjusting entry for supplies?

Accepted Answer

A) debit Supplies, $450; credit Supplies Expense, $450 
B) debit Supplies, $350; credit Supplies Expense, $350 
C) debit Supplies Expense, $450; credit Supplies, $450 
D) debit Supplies Expense, $350; credit Supplies, $350 
A) debit Supplies, $450; credit Supplies Expense, $450 
B) debit Supplies, $350; credit Supplies Expense, $350 
C) debit Supplies Expense, $450; credit Supplies, $450 
D) debit Supplies Expense, $350; credit Supplies, $350

Question 18

If revenues are recognized and recorded when earned, the company is using the:

Accepted Answer

A) cash basis of accounting. 
B) accrual basis of accounting. 
C) adjustment basis of accounting. 
D) the expense basis of accounting. 
A) cash basis of accounting. 
B) accrual basis of accounting. 
C) adjustment basis of accounting. 
D) the expense basis of accounting.

Question 19

Expense accounts are closed by crediting them and debiting Retained Earnings.

Accepted Answer

A) True 
 B)False

Question 20

If a business records expenses when paid, the company is using the:

Accepted Answer

A) cash basis of accounting. 
B) accrual basis of accounting. 
C) adjustment basis of accounting. 
D) the expense basis of accounting. 
A) cash basis of accounting. 
B) accrual basis of accounting. 
C) adjustment basis of accounting. 
D) the expense basis of accounting.

Revenues, expenses and Dividends are called permanent accounts.

The recording of depreciation is related to a(n):

The accounts that are NOT closed are:

During a recent week, incurred wages were $800. However, $480 of the wages had not been paid. Assume no other adjusting entries have been done this fiscal year. The adjusting entry for wages would be:

The balance of Retained Earnings on the adjusted trial balance does not represent the final Retained Earnings balance on the Balance Sheet.

Of the following, which is NOT reported on the Balance Sheet?

The asset cost less accumulated depreciation equals salvage value.

Allied, Inc. bought a 3-year insurance policy on August 1 for $3,900. Assume no other adjusting entries have been done this fiscal year. The adjusting entry on December 31 would be:

A company had a normal $51,000 cash balance on their adjusted trial balance. If revenues, expenses and dividends respectively were $91,000; $20,000 and $3,000 what amount of cash will be found on the post-closing trial balance?

The total revenues of $6,700, total expenses of $3,900 and dividends of $900 were recorded in the closing entries. The net income for the month was:

On January 1 Corporate Condos, Inc received $89,000 for one year's rent for building A. What would the adjusting entry be on March 31?

Item costs that have been incurred, but not yet paid, are called:

If a piece of equipment was purchased on September 1, it would have ________ months depreciation included in the adjusting entry for the calendar year.

The balance in the Supplies account on the adjusted trial balance:

At the beginning of the period, the Supplies account has a balance of $700. At the end of the period, the balance in the account was $475. The adjusting entry would be:

With a deferred expense, an expense is incurred first and cash is paid later.

Supplies on hand were $800 at the start of the year. At the end of the year, it was determined that $450 of supplies had been used. What is the adjusting entry for supplies?

If revenues are recognized and recorded when earned, the company is using the:

Expense accounts are closed by crediting them and debiting Retained Earnings.

If a business records expenses when paid, the company is using the:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

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Exam 3: Adjusting and Closing Entries

Revenues, expenses and Dividends are called permanent accounts.

The recording of depreciation is related to a(n):

The accounts that are NOT closed are:

During a recent week, incurred wages were $800. However, $480 of the wages had not been paid. Assume no other adjusting entries have been done this fiscal year. The adjusting entry for wages would be:

The balance of Retained Earnings on the adjusted trial balance does not represent the final Retained Earnings balance on the Balance Sheet.

Of the following, which is NOT reported on the Balance Sheet?

The asset cost less accumulated depreciation equals salvage value.

Allied, Inc. bought a 3-year insurance policy on August 1 for $3,900. Assume no other adjusting entries have been done this fiscal year. The adjusting entry on December 31 would be:

A company had a normal $51,000 cash balance on their adjusted trial balance. If revenues, expenses and dividends respectively were $91,000; $20,000 and $3,000 what amount of cash will be found on the post-closing trial balance?

The total revenues of $6,700, total expenses of $3,900 and dividends of $900 were recorded in the closing entries. The net income for the month was:

On January 1 Corporate Condos, Inc received $89,000 for one year's rent for building A. What would the adjusting entry be on March 31?

Item costs that have been incurred, but not yet paid, are called:

If a piece of equipment was purchased on September 1, it would have ________ months depreciation included in the adjusting entry for the calendar year.

The balance in the Supplies account on the adjusted trial balance:

At the beginning of the period, the Supplies account has a balance of $700. At the end of the period, the balance in the account was $475. The adjusting entry would be:

With a deferred expense, an expense is incurred first and cash is paid later.

Supplies on hand were $800 at the start of the year. At the end of the year, it was determined that $450 of supplies had been used. What is the adjusting entry for supplies?

If revenues are recognized and recorded when earned, the company is using the:

Expense accounts are closed by crediting them and debiting Retained Earnings.

If a business records expenses when paid, the company is using the:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

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