Question 1

Recording Accounts Receivable 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 2

Salary expense is $975 per day,Monday through Friday,and the business pays employees each Friday.If December 31 falls on a Wednesday,the amount of the adjusting entry to record accrued salaries would be:

Accepted Answer

A) $2,925. 
B) $975. 
C) $1,950. 
D) $4,875. 
A) $2,925. 
B) $975. 
C) $1,950. 
D) $4,875.

Question 3

Recording season ticket monies received in advance as unearned revenue 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 4

Allied,Inc.bought a 2-year insurance policy on August 1 for $3,600.The adjusting entry on December 31 would be:

Accepted Answer

A) debit Insurance Expense,$150;credit Prepaid Insurance,$150. 
B) debit Prepaid Insurance,$150;credit Insurance Expense,$150. 
C) debit Insurance Expense,$750;credit Prepaid Insurance,$750. 
D) debit Prepaid Insurance,$750;credit Insurance Expense,$750. 
A) debit Insurance Expense,$150;credit Prepaid Insurance,$150. 
B) debit Prepaid Insurance,$150;credit Insurance Expense,$150. 
C) debit Insurance Expense,$750;credit Prepaid Insurance,$750. 
D) debit Prepaid Insurance,$750;credit Insurance Expense,$750.

Question 5

Recording Social Security Taxes Payable 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 6

The account balances on the post-closing trial balance should match the balances in the:

Accepted Answer

A) general journal. 
B) Income Statement. 
C) general ledger. 
D) Statement of Retained Earnings. 
A) general journal. 
B) Income Statement. 
C) general ledger. 
D) Statement of Retained Earnings.

Question 7

Expenses are always listed in alphabetical order on the Income Statement.

Accepted Answer

A) True 
 B)False

Question 8

It is necessary to post:

Accepted Answer

A) asset and liability entries. 
B) revenue and expense entries. 
C) adjusting entries. 
D) all journal entries. 
A) asset and liability entries. 
B) revenue and expense entries. 
C) adjusting entries. 
D) all journal entries.

Question 9

The difference between the cost of office equipment and accumulated depreciation-office equipment is called:

Accepted Answer

A) market value. 
B) salvage value. 
C) book value. 
D) original value. 
A) market value. 
B) salvage value. 
C) book value. 
D) original value.

Question 10

A machine costing $45,000 has a life of 12 years.The salvage value is $10,000.It was purchased on February 1.The depreciation expense for the calendar year is:

Accepted Answer

A) $312.50. 
B) $3,437.50. 
C) $243.06. 
D) $2,673.61. 
A) $312.50. 
B) $3,437.50. 
C) $243.06. 
D) $2,673.61.

Question 11

An example of a contra-account would be Accumulated Depreciation.

Accepted Answer

A) True 
 B)False

Question 12

Supplies on hand were $777 of the original $1,034.The adjusting amount for supplies for the year would be:

Accepted Answer

A) $1,034. 
B) $777. 
C) $257. 
D) some other number. 
A) $1,034. 
B) $777. 
C) $257. 
D) some other number.

Question 13

At the end of the period,which is prepared first?

Accepted Answer

A) Income Statement 
B) Balance sheet 
C) Adjusting entries 
D) Unadjusted trial balance 
A) Income Statement 
B) Balance sheet 
C) Adjusting entries 
D) Unadjusted trial balance

Question 14

A machine with a salvage value of $4,000 and a cost of $36,000 was purchased on January 1,2012.What is the depreciation expense for 2012 if the company uses straight-line depreciation for 10 years?

Accepted Answer

A) $36,000 
B) $32,000 
C) $3,600 
D) $3,200 
A) $36,000 
B) $32,000 
C) $3,600 
D) $3,200

Question 15

Part of accrual accounting depends upon recording ________ entries at the end of the fiscal year.

Accepted Answer

A) expense 
B) revenue 
C) adjusting 
D) debit 
A) expense 
B) revenue 
C) adjusting 
D) debit

Question 16

The entry to close the revenue accounts includes:

Accepted Answer

A) a debit to Retained Earnings and credits to the respective revenue accounts. 
B) a debit to Dividends and credits to the respective revenue accounts. 
C) debits to the respective revenue accounts and a credit to Retained Earnings. 
D) debits to the respective revenue accounts and a credit to Dividends. 
A) a debit to Retained Earnings and credits to the respective revenue accounts. 
B) a debit to Dividends and credits to the respective revenue accounts. 
C) debits to the respective revenue accounts and a credit to Retained Earnings. 
D) debits to the respective revenue accounts and a credit to Dividends.

Question 17

After preparing the adjusted trial balance,those figures are used to complete the Balance Sheet only.

Accepted Answer

A) True 
 B)False

Question 18

Adjusting entries are made only for accrued revenues and accrued expenses.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following accounts would NOT be debited or credited in an adjusting entry?

Accepted Answer

A) Supplies Expense 
B) Office Equipment 
C) Wages Expense 
D) Wages Payable 
A) Supplies Expense 
B) Office Equipment 
C) Wages Expense 
D) Wages Payable

Question 20

Which of the following accounts would never be adjusted in a journal entry?

Accepted Answer

A) Prepaid Rent 
B) Supplies 
C) Inventory 
D) Cash 
A) Prepaid Rent 
B) Supplies 
C) Inventory 
D) Cash

Recording Accounts Receivable would be an example of a(n):

Salary expense is $975 per day,Monday through Friday,and the business pays employees each Friday.If December 31 falls on a Wednesday,the amount of the adjusting entry to record accrued salaries would be:

Recording season ticket monies received in advance as unearned revenue would be an example of a(n):

Allied,Inc.bought a 2-year insurance policy on August 1 for $3,600.The adjusting entry on December 31 would be:

Recording Social Security Taxes Payable would be an example of a(n):

The account balances on the post-closing trial balance should match the balances in the:

Expenses are always listed in alphabetical order on the Income Statement.

It is necessary to post:

The difference between the cost of office equipment and accumulated depreciation-office equipment is called:

A machine costing $45,000 has a life of 12 years.The salvage value is $10,000.It was purchased on February 1.The depreciation expense for the calendar year is:

An example of a contra-account would be Accumulated Depreciation.

Supplies on hand were $777 of the original $1,034.The adjusting amount for supplies for the year would be:

At the end of the period,which is prepared first?

A machine with a salvage value of $4,000 and a cost of $36,000 was purchased on January 1,2012.What is the depreciation expense for 2012 if the company uses straight-line depreciation for 10 years?

Part of accrual accounting depends upon recording ________ entries at the end of the fiscal year.

The entry to close the revenue accounts includes:

After preparing the adjusted trial balance,those figures are used to complete the Balance Sheet only.

Adjusting entries are made only for accrued revenues and accrued expenses.

Which of the following accounts would NOT be debited or credited in an adjusting entry?

Which of the following accounts would never be adjusted in a journal entry?

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

Recording Accounts Receivable would be an example of a(n):

Salary expense is $975 per day,Monday through Friday,and the business pays employees each Friday.If December 31 falls on a Wednesday,the amount of the adjusting entry to record accrued salaries would be:

Recording season ticket monies received in advance as unearned revenue would be an example of a(n):

Allied,Inc.bought a 2-year insurance policy on August 1 for $3,600.The adjusting entry on December 31 would be:

Recording Social Security Taxes Payable would be an example of a(n):

The account balances on the post-closing trial balance should match the balances in the:

Expenses are always listed in alphabetical order on the Income Statement.

It is necessary to post:

The difference between the cost of office equipment and accumulated depreciation-office equipment is called:

A machine costing $45,000 has a life of 12 years.The salvage value is $10,000.It was purchased on February 1.The depreciation expense for the calendar year is:

An example of a contra-account would be Accumulated Depreciation.

Supplies on hand were $777 of the original $1,034.The adjusting amount for supplies for the year would be:

At the end of the period,which is prepared first?

A machine with a salvage value of $4,000 and a cost of $36,000 was purchased on January 1,2012.What is the depreciation expense for 2012 if the company uses straight-line depreciation for 10 years?

Part of accrual accounting depends upon recording ________ entries at the end of the fiscal year.

The entry to close the revenue accounts includes:

After preparing the adjusted trial balance,those figures are used to complete the Balance Sheet only.

Adjusting entries are made only for accrued revenues and accrued expenses.

Which of the following accounts would NOT be debited or credited in an adjusting entry?

Which of the following accounts would never be adjusted in a journal entry?

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

Filters