Question 1

Cash received in advance for goods to be delivered or services to be provided later

Accepted Answer

A) Revenues 
B) Sales 
C) Unearned Revenues 
D) Prepaid Revenues

Question 2

Match the terms below with the correct definitions.
 
-An account debited when goods are bought for resale (using the periodic inventory system)

Accepted Answer

The answer of Match the terms below with the correct...

Question 3

Unearned Revenue is classified as a(n)

Accepted Answer

A) revenue account. 
B) expense account. 
C) liability account. 
D) contra revenue account. 
E) asset account.

Question 4

Royal Theater credited Unearned Revenue of $35,000 for tickets sold for its season of four plays, which will be presented at the end of one fiscal period and the beginning of the next. As of December 31, the end of their fiscal period, Royal Theater had earned $16,000. The adjusting entry is

Accepted Answer

A) debit Cash, $16,000; credit Ticket Income, $16,000. 
B) debit Unearned Revenue, $19,000; credit Ticket Income, $19,000. 
C) debit Unearned Revenue, $16,000; credit Ticket Income, $16,000. 
D) debit Ticket Income, $19,000; credit Unearned Ticket Revenue, $19,000. 
E) debit Cash, $16,000; credit Unearned Ticket Revenue, $16,000.

Question 5

If a painting company receives $80,000 in advance for services to be performed in both the present fiscal period and the following fiscal period, the best entry would be

Accepted Answer

A) debit Cash; credit Painting Revenue. 
B) debit Cash; credit Accounts Payable. 
C) debit Cash; credit Unearned Painting Revenue. 
D) debit Cash; credit Other Income. 
E) debit Painting Revenue; credit Unearned Painting Revenue.

Question 6

Adjusting entries can be used for all of the following except:

Accepted Answer

A) Capital 
B) Supplies 
C) Unearned Revenues 
D) Merchandise Inventory

Question 7

If the Prepaid Insurance account had an unadjusted normal balance of $3,400, and an adjustment was made crediting the account for $800, then the account would appear on the work sheet as a(n)

Accepted Answer

A) $2,600 debit balance in the Balance Sheet columns. 
B) $800 credit balance in the Income Statement columns. 
C) $2,600 credit balance in the Adjusted Trial Balance columns. 
D) $800 credit balance in the Balance Sheet columns. 
E) $2,600 debit balance in the Income Statement columns.

Question 8

The Unearned Revenue account would be used when a company

Accepted Answer

A) collects cash and earns the revenue in the same fiscal period. 
B) collects cash and earns the revenue over two fiscal periods. 
C) pays cash for services not yet earned. 
D) pays cash for services earned in two fiscal periods. 
E) does none of these.

Question 9

The Unearned Revenue adjustment can occur only in merchandising businesses.

Accepted Answer

A) True 
 B)False

Question 10

An example of unearned revenues

Accepted Answer

A) Collecting 3 months rent in advance 
B) Paying 3 months rent in advance 
C) Collecting the current month's rent 
D) Paying the current month's rent

Question 11

The Income Statement Debit column exceeds the Income Statement Credit column on a work sheet. This indicates

Accepted Answer

A) a net income for the company. 
B) a net loss for the company. 
C) that mistakes were made in the preparation of the work sheet. 
D) the owner's Capital account increased during the year. 
E) the inventory increased during the year.

Question 12

If the Unearned Revenue account had an unadjusted normal balance of $3,800, and an adjustment was made debiting the account for $500, the amount would appear in the Adjusted Trial Balance columns of the work sheet as a

Accepted Answer

A) $4,300 debit. 
B) $4,300 credit. 
C) $3,300 debit. 
D) $3,300 credit. 
E) $3,800 debit.

Question 13

This account is debited in a periodic inventory system, when goods are bought for resale.

Accepted Answer

A) Merchandise Inventory 
B) Purchases 
C) Purchase Discounts 
D) Sales

Question 14

On a work sheet, the Income Statement Debit column equals $90,800, and the Income Statement Credit column equals $105,600. From this data, it can be determined that the company had a

Accepted Answer

A) net loss of $14,800 added to the Income Statement Debit column. 
B) net income of $14,800 added to the Income Statement Debit column. 
C) net loss of $14,800 added to the Balance Sheet Credit column. 
D) net income of $14,800 added to the Balance Sheet Debit column. 
E) net income of $14,800 added to the Adjusted Trial Balance Credit column.

Question 15

On the work sheet, the amount of the beginning merchandise inventory appears in the

Accepted Answer

A) Balance Sheet Credit column. 
B) Adjustments Credit column. 
C) Balance Sheet Debit column. 
D) Trial Balance Credit column. 
E) Adjustments Debit column.

Question 16

The adjusting entry for depreciation will decrease the Accumulated Depreciation account.

Accepted Answer

A) True 
 B)False

Question 17

The first adjusting entry for merchandise inventory with the periodic inventory system is a credit to Merchandise Inventory and a debit to Income Summary.

Accepted Answer

A) True 
 B)False

Question 18

The adjusting entry for expired or used insurance will increase the Insurance Expense account.

Accepted Answer

A) True 
 B)False

Question 19

The second adjusting entry for merchandise inventory with the periodic inventory system is to debit Merchandise Inventory for the amount of the beginning inventory.

Accepted Answer

A) True 
 B)False

Question 20

Match the terms below with the correct definitions.
 
-Liability account that is credited when cash is received in advance for the delivery of goods or services to be earned in two fiscal periods

Accepted Answer

The answer of Match the terms below with the correct...

Exam 11: Work Sheet and Adjusting Entries

Cash received in advance for goods to be delivered or services to be provided later

Match the terms below with the correct definitions. -An account debited when goods are bought for resale (using the periodic inventory system)

Unearned Revenue is classified as a(n)

Royal Theater credited Unearned Revenue of $35,000 for tickets sold for its season of four plays, which will be presented at the end of one fiscal period and the beginning of the next. As of December 31, the end of their fiscal period, Royal Theater had earned $16,000. The adjusting entry is

If a painting company receives $80,000 in advance for services to be performed in both the present fiscal period and the following fiscal period, the best entry would be

Adjusting entries can be used for all of the following except:

If the Prepaid Insurance account had an unadjusted normal balance of $3,400, and an adjustment was made crediting the account for $800, then the account would appear on the work sheet as a(n)

The Unearned Revenue account would be used when a company

The Unearned Revenue adjustment can occur only in merchandising businesses.

An example of unearned revenues

The Income Statement Debit column exceeds the Income Statement Credit column on a work sheet. This indicates

If the Unearned Revenue account had an unadjusted normal balance of $3,800, and an adjustment was made debiting the account for $500, the amount would appear in the Adjusted Trial Balance columns of the work sheet as a

This account is debited in a periodic inventory system, when goods are bought for resale.

On a work sheet, the Income Statement Debit column equals $90,800, and the Income Statement Credit column equals $105,600. From this data, it can be determined that the company had a

On the work sheet, the amount of the beginning merchandise inventory appears in the

The adjusting entry for depreciation will decrease the Accumulated Depreciation account.

The first adjusting entry for merchandise inventory with the periodic inventory system is a credit to Merchandise Inventory and a debit to Income Summary.

The adjusting entry for expired or used insurance will increase the Insurance Expense account.

The second adjusting entry for merchandise inventory with the periodic inventory system is to debit Merchandise Inventory for the amount of the beginning inventory.

Match the terms below with the correct definitions. -Liability account that is credited when cash is received in advance for the delivery of goods or services to be earned in two fiscal periods