Deck 9: Adjustments

Question 1

To record adjusting journal entries in QuickBooks,select:

A)Company Center > Journal Entry icon
B)Accountant Menu > Make General Journal Entries
C)Banking section of the Home Page > Journal Entry icon
D)Company section of the Home Page > Journal Entry icon

Answer 1

B

Question 2

The Trial Balance:

A)Lists all the company's accounts,all transactions affecting accounts,and ending account balances
B)Is prepared before making adjustments
C)Is prepared after financial statements are prepared
D)Verifies there are no errors in the entire accounting system

Answer 2

B

Question 3

Types of adjusting entries include all of the following except:

A)Prepaid Items
B)Accrued Revenues
C)Accrued Expenses
D)Accrued Cash

Answer 3

D

Question 4

Adjusting entries for accrued expenses typically include which of the following related types of accounts:

A)Revenue and Liability accounts
B)Revenue and Asset accounts
C)Expense and Liability accounts
D)Expense and Asset accounts

Question 5

Adjusting entries for unearned items typically include which of the following related types of accounts:

A)Revenue and Liability accounts
B)Revenue and Asset accounts
C)Expense and Liability accounts
D)Expense and Asset accounts

Question 6

Adjusting entries for accrued revenues typically include which of the following related types of accounts:

A)Revenue and Liability accounts
B)Revenue and Asset accounts
C)Expense and Liability accounts
D)Expense and Asset accounts

Question 7

To prepare a Trial Balance,select:

A)Reports Center > Accountant & Taxes
B)Company Center > Company & Financials
C)Reports Center > Company & Financials
D)Company Center > Accountant & Taxes

Question 8

Adjusting entries are used to:

A)Close temporary accounts at year end
B)Close permanent accounts at year-end
C)Bring account balances up to date at year end
D)All the choices are correct

Question 9

To print an Adjusted Trial Balance,select:

A)Reports Center > Accountant & Taxes
B)Company Center > Company & Financials
C)Reports Center > Company & Financials
D)Company Center > Accountant & Taxes

Question 10

Sales are recorded under cash basis accounting when:

A)The goods or services are provided regardless of whether the cash is collected from the customers
B)The bookkeeper has time to record the transactions
C)The cash is collected from the customers
D)The costs are incurred to earn the revenue

Question 11

An accounting period may be:

A)One quarter
B)One month
C)One year
D)All the choices are correct

Question 12

Unearned revenue occurs when:

A)Customers pay after receiving a service
B)Customers pay in advance of receiving a service
C)Customers default and do not pay you what is owed
D)All the choices are correct

Question 13

The order of the steps in the accounting cycle includes:

A)Adjusted Trial Balance,financial reports,adjusting entries,Trial Balance
B)Adjusted Trial Balance,adjusting entries,financial reports,Trial Balance
C)Trial Balance,adjusting entries,Adjusted Trial Balance,financial reports
D)Trial Balance,financial reports,adjusting entries,Adjusted Trial Balance

Question 14

What is an asset?

A)What remains after the liabilities are satisfied
B)What a company owes
C)What a company owns
D)The excess of revenues over expenses

Question 15

To record adjusting entries,use:

A)Reports Menu > General Journal Entries
B)Accountant Menu > Make General Journal Entries
C)Banking Menu > Make General Journal Entries
D)Home > Journal Entries

Question 16

Adjusting entries should be made:

A)Before preparing an Adjusted Trial Balance
B)After preparing financial statements
C)After preparing an Adjusted Trial Balance
D)Before preparing a Trial Balance

Question 17

Before making adjusting entries,you should:

A)Close permanent accounts
B)Prepare a Trial Balance
C)Close temporary accounts
D)Prepare a balance sheet

Question 18

Prepaid items for which adjusting entries may be necessary include all of the following except:

A)Prepaid insurance
B)Prepaid Rent
C)Accrued Interest
D)Office Supplies

Question 19

If a count of office supplies on hand reveal $100 of supplies unused at year-end and the Office Supplies on Hand account has a balance of $350,the adjusting entry to bring the Office Supplies on Hand up to date at year-end should include:

A)Debit Office Supplies on Hand $100,Credit Office Supplies Expense $100
B)Debit Office Supplies on Hand $150,Credit Office Supplies Expense $150
C)Debit Office Supplies Expense $100,Credit Office Supplies on Hand $100
D)Debit Office Supplies Expense $250,Credit Office Supplies on Hand $250

Question 20

Adjusting entries for prepaid items typically include which of the following related types of accounts:

A)Revenue and Liability accounts
B)Revenue and Asset accounts
C)Expense and Liability accounts
D)Expense and Asset accounts

Question 21

Briefly explain 2 (two)differences between depreciation on a tax return and on a financial statement.

Question 22

What is the difference between the cash basis and the accrual basis?

Question 23

Briefly explain the difference between voiding and deleting an erroneous document in order to correct an error entered in QuickBooks.