Question 1

The adjusted balance for Supplies was $333.The unadjusted balance for Supplies was $509.The amount of supplies expense would be recorded as a:

Accepted Answer

A) $333 debit. 
B) $176 debit. 
C) $176 credit. 
D) $509 debit. 
A) $333 debit. 
B) $176 debit. 
C) $176 credit. 
D) $509 debit.

Question 2

Recording Interest 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 3

Net income or net loss can be determined by the adjusted trial balance figures.

Accepted Answer

A) True 
 B)False

Question 4

It is possible to determine the net income or loss for the period by:

Accepted Answer

A) taking adjusted trial balance amounts and subtracting expenses from revenues. 
B) looking at the bottom line on the Income Statement. 
C) taking post-closing trial balance amounts and subtracting expenses from revenues. 
D) both A and B,which describe correct ways to determine the net income or loss for the period. 
A) taking adjusted trial balance amounts and subtracting expenses from revenues. 
B) looking at the bottom line on the Income Statement. 
C) taking post-closing trial balance amounts and subtracting expenses from revenues. 
D) both A and B,which describe correct ways to determine the net income or loss for the period.

Question 5

Which of the following does NOT go onto the Balance Sheet from the adjusted trial balance?

Accepted Answer

A) Dividends 
B) Accounts Payable 
C) Land 
D) Cash 
A) Dividends 
B) Accounts Payable 
C) Land 
D) Cash

Question 6

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 7

The unadjusted trial balance for Prepaid Insurance shows a $1,350 balance.$500 of the balance was unexpired at year's end.On the adjusted trial balance,the balance for Prepaid Insurance is a:

Accepted Answer

A) $500 debit. 
B) $500 credit. 
C) $850 debit. 
D) $850 credit. 
A) $500 debit. 
B) $500 credit. 
C) $850 debit. 
D) $850 credit.

Question 8

Express Barber gave 400 haircuts this past month.They charge $18 per haircut.Expenses incurred during the month were $3500 wages,$288 utilities/water,and $350 shampoo/styling products.$2500 in wages were paid during the month,the rest of the wages-along with the utilities and shampoo/styling products were not paid during the month.What is Express Barber's net income or loss for the month?

Accepted Answer

A) Not enough information provided to calculate net income or loss 
B) $3,062 net income 
C) $3,988 net income 
D) $4,700 net income 
A) Not enough information provided to calculate net income or loss 
B) $3,062 net income 
C) $3,988 net income 
D) $4,700 net income

Question 9

The entry to close the expense accounts includes:

Accepted Answer

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

Question 10

Unearned Ticket Revenue is $5,034 on the unadjusted trial balance.During the period,$3,309 of that money has now been earned.The adjusted balance for Unearned Ticket Revenue is a:

Accepted Answer

A) $3,309 debit. 
B) $3,309 credit. 
C) $1,725 debit. 
D) $1,725 credit. 
A) $3,309 debit. 
B) $3,309 credit. 
C) $1,725 debit. 
D) $1,725 credit.

Question 11

Wages that have been accrued need to be recorded so that the matching principle is reflected in Wages Expense.

Accepted Answer

A) True 
 B)False

Question 12

The Supplies account must be adjusted to reflect the supplies that were used during the period.

Accepted Answer

A) True 
 B)False

Question 13

________ entries transfer net income or net loss and dividends to the Retained Earnings account.

Accepted Answer

A) Adjusting 
B) Closing 
C) General 
D) Timely 
A) Adjusting 
B) Closing 
C) General 
D) Timely

Question 14

The closing entries show a debit to Retained Earnings of $350,and a credit to Retained Earnings of $750.There was also a credit to Dividends Payable of $100.This company had a:

Accepted Answer

A) net loss of $400. 
B) net income of $400. 
C) net loss of $500. 
D) net income of $500. 
A) net loss of $400. 
B) net income of $400. 
C) net loss of $500. 
D) net income of $500.

Question 15

The account to which revenue and expenses are closed is called:

Accepted Answer

A) Cash. 
B) Retained Earnings. 
C) Common Stock. 
D) Sales. 
A) Cash. 
B) Retained Earnings. 
C) Common Stock. 
D) Sales.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

If Blue company records expenses in the time period when incurred,they are using the:

Accepted Answer

A) cash basis of accounting. 
B) accrual basis of accounting. 
C) adjustment basis of accounting. 
D) expense basis of accounting. 
A) cash basis of accounting. 
B) accrual basis of accounting. 
C) adjustment basis of accounting. 
D) expense basis of accounting.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Acme,Inc.washed 100 cars this past month.They charge $7 per car for a wash.The company's only expenses during this month were $83 utilities/water,$300 wages and $31 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) $400 net income 
C) $317 net income 
D) $286 net income 
A) It is impossible to calculate from the given information,because the amount of revenue received in cash is not known. 
B) $400 net income 
C) $317 net income 
D) $286 net income

Question 20

The journal entry to record $2,750 of depreciation expense for the year would be to:

Accepted Answer

A) debit Depreciation Expense,$2,750;credit Equipment,$2,750. 
B) debit Accumulated Depreciation,$2,750;credit Depreciation Expense,$2,750. 
C) debit Accumulated Depreciation,$2,750;credit Equipment,$2,750. 
D) debit Depreciation Expense,$2,750;credit Accumulated Depreciation,$2,750. 
A) debit Depreciation Expense,$2,750;credit Equipment,$2,750. 
B) debit Accumulated Depreciation,$2,750;credit Depreciation Expense,$2,750. 
C) debit Accumulated Depreciation,$2,750;credit Equipment,$2,750. 
D) debit Depreciation Expense,$2,750;credit Accumulated Depreciation,$2,750.

The adjusted balance for Supplies was $333.The unadjusted balance for Supplies was $509.The amount of supplies expense would be recorded as a:

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

Net income or net loss can be determined by the adjusted trial balance figures.

It is possible to determine the net income or loss for the period by:

Which of the following does NOT go onto the Balance Sheet from the adjusted trial balance?

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

The unadjusted trial balance for Prepaid Insurance shows a $1,350 balance.$500 of the balance was unexpired at year's end.On the adjusted trial balance,the balance for Prepaid Insurance is a:

The entry to close the expense accounts includes:

Unearned Ticket Revenue is $5,034 on the unadjusted trial balance.During the period,$3,309 of that money has now been earned.The adjusted balance for Unearned Ticket Revenue is a:

Wages that have been accrued need to be recorded so that the matching principle is reflected in Wages Expense.

The Supplies account must be adjusted to reflect the supplies that were used during the period.

________ entries transfer net income or net loss and dividends to the Retained Earnings account.

The closing entries show a debit to Retained Earnings of $350,and a credit to Retained Earnings of $750.There was also a credit to Dividends Payable of $100.This company had a:

The account to which revenue and expenses are closed is called:

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

If Blue company records expenses in the time period when incurred,they are using the:

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

The journal entry to record $2,750 of depreciation expense for the year would be to:

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 balance for Supplies was $333.The unadjusted balance for Supplies was $509.The amount of supplies expense would be recorded as a:

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

Net income or net loss can be determined by the adjusted trial balance figures.

It is possible to determine the net income or loss for the period by:

Which of the following does NOT go onto the Balance Sheet from the adjusted trial balance?

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

The unadjusted trial balance for Prepaid Insurance shows a $1,350 balance.$500 of the balance was unexpired at year's end.On the adjusted trial balance,the balance for Prepaid Insurance is a:

The entry to close the expense accounts includes:

Unearned Ticket Revenue is $5,034 on the unadjusted trial balance.During the period,$3,309 of that money has now been earned.The adjusted balance for Unearned Ticket Revenue is a:

Wages that have been accrued need to be recorded so that the matching principle is reflected in Wages Expense.

The Supplies account must be adjusted to reflect the supplies that were used during the period.

________ entries transfer net income or net loss and dividends to the Retained Earnings account.

The closing entries show a debit to Retained Earnings of $350,and a credit to Retained Earnings of $750.There was also a credit to Dividends Payable of $100.This company had a:

The account to which revenue and expenses are closed is called:

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

If Blue company records expenses in the time period when incurred,they are using the:

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

The journal entry to record $2,750 of depreciation expense for the year would be to:

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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