Question 1

Adjusting entries for Supplies and Prepaid Rent would be adjustments for:

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

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

Question 3

The adjusted trial balance is prepared before the adjusting entries are completed and posted.

Accepted Answer

A) True 
 B)False

Question 4

Because inventories are high, Target should end its fiscal year in either November or December.

Accepted Answer

A) True 
 B)False

Question 5

It does not matter when a fiscal year starts as long as it is twelve consecutive months long.

Accepted Answer

A) True 
 B)False

Question 6

Acme, Inc. washed 130 cars this past month. They charge $10 per car for a wash. The company's only expenses during this month were $93 utilities/water, $300 wages and $41 for soap. The wages were paid during the month, but the utility bill and soap bills were not. What is Acme's income or loss for this month?

Accepted Answer

A) It is impossible to calculate from the given information, because the amount of revenue received in cash is not known. 
B) $1,000 net income 
C) $907 net income 
D) $866 net income 
A) It is impossible to calculate from the given information, because the amount of revenue received in cash is not known. 
B) $1,000 net income 
C) $907 net income 
D) $866 net income

Question 7

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 8

Of the following, which would be reported on the Income Statement?

Accepted Answer

A) Rent Expense 
B) rent revenue 
C) Prepaid Rent 
D) both A and B 
A) Rent Expense 
B) rent revenue 
C) Prepaid Rent 
D) both A and B

Question 9

Land must be adjusted for depreciation at the end of the period.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The adjusted balance for Supplies was $403. The unadjusted balance for Supplies was $539. The amount of supplies expense would be recorded as a:

Accepted Answer

A) $403 debit. 
B) $136 debit. 
C) $136 credit. 
D) $539 debit. 
A) $403 debit. 
B) $136 debit. 
C) $136 credit. 
D) $539 debit.

Question 12

The unadjusted trial balance for Prepaid Insurance shows a $1,850 balance. $600 of the balance was unexpired at year's end. On the adjusted trial balance, the balance for Prepaid Insurance is a:

Accepted Answer

A) $600 debit. 
B) $600 credit. 
C) $1,250 debit. 
D) $1,250 credit. 
A) $600 debit. 
B) $600 credit. 
C) $1,250 debit. 
D) $1,250 credit.

Question 13

Which of the following is a TRUE statement regarding the Unearned Revenue account?

Accepted Answer

A) Unearned Revenue is accrued as the business provides goods or services. 
B) Unearned Revenue is expensed as the business provides goods or services. 
C) Unearned Revenue decreases as the business provides goods or services. 
D) Unearned Revenue increases as the business provides goods or services. 
A) Unearned Revenue is accrued as the business provides goods or services. 
B) Unearned Revenue is expensed as the business provides goods or services. 
C) Unearned Revenue decreases as the business provides goods or services. 
D) Unearned Revenue increases as the business provides goods or services.

Question 14

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 15

The adjusted trial balance shows:

Accepted Answer

A) accounts that may still be out of balance. 
B) revenues and expense amounts only. 
C) numbers ready to be transferred to the financial statements. 
D) assets, liabilities and Stockholders' Equity amounts only. 
A) accounts that may still be out of balance. 
B) revenues and expense amounts only. 
C) numbers ready to be transferred to the financial statements. 
D) assets, liabilities and Stockholders' Equity amounts only.

Question 16

The majority of businesses normally end their fiscal year on:

Accepted Answer

A) June 30. 
B) September 30. 
C) December 31. 
D) some other date. 
A) June 30. 
B) September 30. 
C) December 31. 
D) some other date.

Question 17

Assets, Liabilities and Retained Earnings are permanent accounts that are NOT closed at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 18

All financial statements must have, in order, the:

Accepted Answer

A) title of financial statement and specific date. 
B) title of financial statement, name of company, and specific date. 
C) name of company, title of financial statement, and specific date. 
D) name of company, title of financial statement, and a specific date or period. 
A) title of financial statement and specific date. 
B) title of financial statement, name of company, and specific date. 
C) name of company, title of financial statement, and specific date. 
D) name of company, title of financial statement, and a specific date or period.

Question 19

The post-closing trial balance is a listing of the general ledger accounts that have balances at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Adjusting entries for Supplies and Prepaid Rent would be adjustments for:

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

The adjusted trial balance is prepared before the adjusting entries are completed and posted.

Because inventories are high, Target should end its fiscal year in either November or December.

It does not matter when a fiscal year starts as long as it is twelve consecutive months long.

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

Of the following, which would be reported on the Income Statement?

Land must be adjusted for depreciation at the end of the period.

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

The adjusted balance for Supplies was $403. The unadjusted balance for Supplies was $539. The amount of supplies expense would be recorded as a:

The unadjusted trial balance for Prepaid Insurance shows a $1,850 balance. $600 of the balance was unexpired at year's end. On the adjusted trial balance, the balance for Prepaid Insurance is a:

Which of the following is a TRUE statement regarding the Unearned Revenue account?

The entry to close the Dividend account includes:

The adjusted trial balance shows:

The majority of businesses normally end their fiscal year on:

Assets, Liabilities and Retained Earnings are permanent accounts that are NOT closed at the end of the accounting period.

All financial statements must have, in order, the:

The post-closing trial balance is a listing of the general ledger accounts that have balances at the end of the accounting period.

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

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

Adjusting entries for Supplies and Prepaid Rent would be adjustments for:

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

The adjusted trial balance is prepared before the adjusting entries are completed and posted.

Because inventories are high, Target should end its fiscal year in either November or December.

It does not matter when a fiscal year starts as long as it is twelve consecutive months long.

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

Of the following, which would be reported on the Income Statement?

Land must be adjusted for depreciation at the end of the period.

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

The adjusted balance for Supplies was $403. The unadjusted balance for Supplies was $539. The amount of supplies expense would be recorded as a:

The unadjusted trial balance for Prepaid Insurance shows a $1,850 balance. $600 of the balance was unexpired at year's end. On the adjusted trial balance, the balance for Prepaid Insurance is a:

Which of the following is a TRUE statement regarding the Unearned Revenue account?

The entry to close the Dividend account includes:

The adjusted trial balance shows:

The majority of businesses normally end their fiscal year on:

Assets, Liabilities and Retained Earnings are permanent accounts that are NOT closed at the end of the accounting period.

All financial statements must have, in order, the:

The post-closing trial balance is a listing of the general ledger accounts that have balances at the end of the accounting period.

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

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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