Question 1

The adjusted trial balance will directly show the:

Accepted Answer

A) amount of the adjustments made to expense accounts only. 
B) final balance in the Retained Earnings account. 
C) amount of the adjustment made to each account. 
D) adjusted balances for every account affected by an adjusting entry. 
A) amount of the adjustments made to expense accounts only. 
B) final balance in the Retained Earnings account. 
C) amount of the adjustment made to each account. 
D) adjusted balances for every account affected by an adjusting entry. A

Question 2

Adjusting entries always include a debit or credit to Cash.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following accounts is NOT affected by an accrued expense?

Accepted Answer

A) Sales Tax Payable 
B) Supplies 
C) Interest Expense 
D) Wages Payable 
A) Sales Tax Payable 
B) Supplies 
C) Interest Expense 
D) Wages Payable B

Question 4

Unearned Ticket Revenue must be adjusted to show how much of the deferred revenue has been earned during the period.

Accepted Answer

A) True 
 B)False

Question 5

On January 1,Daisy Company paid $5,400 for six months rent.What would the adjusting entry be on March 31?

Accepted Answer

A) Debit Rent Expense $900,credit Prepaid Rent $900 
B) Debit Rent Expense $900,credit Cash $900 
C) Debit Rent Expense $2,700,credit Prepaid Rent $2,700 
D) Debit Rent Expense $2,700,credit Cash $2,700 
A) Debit Rent Expense $900,credit Prepaid Rent $900 
B) Debit Rent Expense $900,credit Cash $900 
C) Debit Rent Expense $2,700,credit Prepaid Rent $2,700 
D) Debit Rent Expense $2,700,credit Cash $2,700

Question 6

Adjusting entries are completed before the unadjusted trial balance is prepared.

Accepted Answer

A) True 
 B)False

Question 7

Using the adjusted trial balance,the first financial statement to prepare is the Income Statement.

Accepted Answer

A) True 
 B)False

Question 8

Closing entries are prepared for which of the following reasons?

Accepted Answer

A) To get the accounts ready for the next accounting period 
B) To get the worksheet ready for the next accounting period 
C) To get the journal ready for the next accounting period 
D) To get the financial statements ready for the next accounting period 
A) To get the accounts ready for the next accounting period 
B) To get the worksheet ready for the next accounting period 
C) To get the journal ready for the next accounting period 
D) To get the financial statements ready for the next accounting period

Question 9

On the Income Statement,expenses are always listed in descending order from the largest to the smallest amount.

Accepted Answer

A) True 
 B)False

Question 10

Recording the purchase of supplies in a prepaid account would be an example of 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 11

The unadjusted trial balance shows a $12,000 balance for Prepaid Rent.At the end of the year,$7,000 of the rent had been used.The adjusted trial balance reflects a balance for Prepaid Rent of:

Accepted Answer

A) $5,000 debit. 
B) $5,000 credit. 
C) $7,000 debit. 
D) $7,000 credit. 
A) $5,000 debit. 
B) $5,000 credit. 
C) $7,000 debit. 
D) $7,000 credit.

Question 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

The total revenues of $6,500,total expenses of $3,500 and dividends of $500 were recorded in the closing entries.The net income for the month was:

Accepted Answer

A) $6,000. 
B) $3,000. 
C) $2,500. 
D) $3,500. 
A) $6,000. 
B) $3,000. 
C) $2,500. 
D) $3,500.

Question 15

The balance in the Accumulated Depreciation account on the adjusted trial balance:

Accepted Answer

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

Question 16

Recording Prepaid Rent would be an example of 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 17

The adjusted trial balance proves that:

Accepted Answer

A) all adjusting entries have been recorded correctly. 
B) debit totals equal credit totals. 
C) no adjusting entry has been entered twice. 
D) the balance of the adjusted trial balance is correct. 
A) all adjusting entries have been recorded correctly. 
B) debit totals equal credit totals. 
C) no adjusting entry has been entered twice. 
D) the balance of the adjusted trial balance is correct.

Question 18

The entry to close the Dividend account includes:

Accepted Answer

A) a debit to Common Stock and a credit to Dividends. 
B) a debit to Dividends and a credit to Retained Earnings. 
C) a debit to Dividends and a credit to Common Stock. 
D) a debit to Retained Earnings and a credit to Dividends. 
A) a debit to Common Stock and a credit to Dividends. 
B) a debit to Dividends and a credit to Retained Earnings. 
C) a debit to Dividends and a credit to Common Stock. 
D) a debit to Retained Earnings and a credit to Dividends.

Question 19

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.

Question 20

Which of the following accounts appear on the post-closing trial balance?

Accepted Answer

A) Rent Expense 
B) Sales Revenue 
C) Cash 
D) Dividends 
A) Rent Expense 
B) Sales Revenue 
C) Cash 
D) Dividends

The adjusted trial balance will directly show the:

Adjusting entries always include a debit or credit to Cash.

Which of the following accounts is NOT affected by an accrued expense?

Unearned Ticket Revenue must be adjusted to show how much of the deferred revenue has been earned during the period.

On January 1,Daisy Company paid $5,400 for six months rent.What would the adjusting entry be on March 31?

Adjusting entries are completed before the unadjusted trial balance is prepared.

Using the adjusted trial balance,the first financial statement to prepare is the Income Statement.

Closing entries are prepared for which of the following reasons?

On the Income Statement,expenses are always listed in descending order from the largest to the smallest amount.

Recording the purchase of supplies in a prepaid account would be an example of a(n):

The unadjusted trial balance shows a $12,000 balance for Prepaid Rent.At the end of the year,$7,000 of the rent had been used.The adjusted trial balance reflects a balance for Prepaid Rent of:

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

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

The total revenues of $6,500,total expenses of $3,500 and dividends of $500 were recorded in the closing entries.The net income for the month was:

The balance in the Accumulated Depreciation account on the adjusted trial balance:

Recording Prepaid Rent would be an example of a(n):

The adjusted trial balance proves that:

The entry to close the Dividend account includes:

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

Which of the following accounts appear on the post-closing trial balance?

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

The adjusted trial balance will directly show the:

Adjusting entries always include a debit or credit to Cash.

Which of the following accounts is NOT affected by an accrued expense?

Unearned Ticket Revenue must be adjusted to show how much of the deferred revenue has been earned during the period.

On January 1,Daisy Company paid $5,400 for six months rent.What would the adjusting entry be on March 31?

Adjusting entries are completed before the unadjusted trial balance is prepared.

Using the adjusted trial balance,the first financial statement to prepare is the Income Statement.

Closing entries are prepared for which of the following reasons?

On the Income Statement,expenses are always listed in descending order from the largest to the smallest amount.

Recording the purchase of supplies in a prepaid account would be an example of a(n):

The unadjusted trial balance shows a $12,000 balance for Prepaid Rent.At the end of the year,$7,000 of the rent had been used.The adjusted trial balance reflects a balance for Prepaid Rent of:

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

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

The total revenues of $6,500,total expenses of $3,500 and dividends of $500 were recorded in the closing entries.The net income for the month was:

The balance in the Accumulated Depreciation account on the adjusted trial balance:

Recording Prepaid Rent would be an example of a(n):

The adjusted trial balance proves that:

The entry to close the Dividend account includes:

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

Which of the following accounts appear on the post-closing trial balance?

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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