Question 1

A 20-month insurance policy was purchased for $1,500 on May 1.How much insurance will be expensed on December 31?

Accepted Answer

A) $1,500 
B) $75 
C) $300 
D) $600 
A) $1,500 
B) $75 
C) $300 
D) $600

Question 2

Adjusting entries are used to update accounts at the end of an accounting period.

Accepted Answer

A) True 
 B)False

Question 3

The type of accounting required by GAAP is:

Accepted Answer

A) modified cash. 
B) hybrid cash. 
C) cash. 
D) accrual. 
A) modified cash. 
B) hybrid cash. 
C) cash. 
D) accrual.

Question 4

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 5

Annual depreciation on equipment at Charmed,Inc.is $1,200.The adjusting entry to record one month's worth of depreciation would be:

Accepted Answer

A) Debit Depreciation Expense $100,credit Cash $100 
B) Debit Depreciation Expense $100,credit Accumulated Depreciation $100 
C) Debit Depreciation Expense $1,200,credit Cash $1,200 
D) Debit Depreciation Expense $1,200,credit Accumulated Depreciation $1,200 
A) Debit Depreciation Expense $100,credit Cash $100 
B) Debit Depreciation Expense $100,credit Accumulated Depreciation $100 
C) Debit Depreciation Expense $1,200,credit Cash $1,200 
D) Debit Depreciation Expense $1,200,credit Accumulated Depreciation $1,200

Question 6

Accumulated Depreciation is recorded in the Liabilities section of the Balance Sheet.

Accepted Answer

A) True 
 B)False

Question 7

On January 1 Corporate Condos,Inc received $96,000 for one year's rent for building A.What would the adjusting entry be on March 31?

Accepted Answer

A) Debit Rent Expense $8,000,credit Prepaid Rent $8,000 
B) Debit unearned rent revenue $8,000,credit rent revenue $8,000 
C) Debit Rent Expense $24,000,credit Prepaid Rent $24,000 
D) Debit unearned rent revenue $24,000,credit rent revenue $24,000 
A) Debit Rent Expense $8,000,credit Prepaid Rent $8,000 
B) Debit unearned rent revenue $8,000,credit rent revenue $8,000 
C) Debit Rent Expense $24,000,credit Prepaid Rent $24,000 
D) Debit unearned rent revenue $24,000,credit rent revenue $24,000

Question 8

Recording office supplies as an asset after paying for them would be considered a deferral.

Accepted Answer

A) True 
 B)False

Question 9

Interest Expense had an adjusted balance of $1,178.The adjusting entry for accrued interest was for $382.The unadjusted balance for Interest Expense was a:

Accepted Answer

A) $382 debit. 
B) $1,560 debit. 
C) $1,560 credit. 
D) $796 debit. 
A) $382 debit. 
B) $1,560 debit. 
C) $1,560 credit. 
D) $796 debit.

A 20-month insurance policy was purchased for $1,500 on May 1.How much insurance will be expensed on December 31?

Adjusting entries are used to update accounts at the end of an accounting period.

The type of accounting required by GAAP is:

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

Annual depreciation on equipment at Charmed,Inc.is $1,200.The adjusting entry to record one month's worth of depreciation would be:

Accumulated Depreciation is recorded in the Liabilities section of the Balance Sheet.

On January 1 Corporate Condos,Inc received $96,000 for one year's rent for building A.What would the adjusting entry be on March 31?

Recording office supplies as an asset after paying for them would be considered a deferral.

Interest Expense had an adjusted balance of $1,178.The adjusting entry for accrued interest was for $382.The unadjusted balance for Interest Expense was a:

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

A 20-month insurance policy was purchased for $1,500 on May 1.How much insurance will be expensed on December 31?

Adjusting entries are used to update accounts at the end of an accounting period.

The type of accounting required by GAAP is:

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

Annual depreciation on equipment at Charmed,Inc.is $1,200.The adjusting entry to record one month's worth of depreciation would be:

Accumulated Depreciation is recorded in the Liabilities section of the Balance Sheet.

On January 1 Corporate Condos,Inc received $96,000 for one year's rent for building A.What would the adjusting entry be on March 31?

Recording office supplies as an asset after paying for them would be considered a deferral.

Interest Expense had an adjusted balance of $1,178.The adjusting entry for accrued interest was for $382.The unadjusted balance for Interest Expense was a:

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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