Question 1

Unearned revenue is a liability.

Accepted Answer

A) True 
 B)False

Question 2

If the effect of the credit portion of an adjusting entry is to increase the balance of a revenue account, which of the following describes the effect of the debit portion of the entry?

Accepted Answer

A)  increases the balance of a contra revenue account 
B)  decreases the balance of an asset account 
C)  increases the balance of a stockholders' equity account 
D)  decreases the balance of a liability account 
A)  increases the balance of a contra revenue account 
B)  decreases the balance of an asset account 
C)  increases the balance of a stockholders' equity account 
D)  decreases the balance of a liability account

Question 3

The following adjusting journal entry does not include an explanation. Select the best explanation for the entry.

Accepted Answer

A)  Record supplies used. 
B)  Record purchase of supplies. 
C)  Reduce supplies expense. 
D)  Record sale of supplies. 
A)  Record supplies used. 
B)  Record purchase of supplies. 
C)  Reduce supplies expense. 
D)  Record sale of supplies.

Question 4

If the debit portion of an adjusting entry is to an asset account, then the credit portion must be to a liability account.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is considered to be an accrued expense?

Accepted Answer

A)  a computer technician has installed the latest software updates and was paid on the same day 
B)  a computer technician has been paid in advance to install software updates as they become available 
C)  a computer technician has just signed an agreement with you regarding pricing for future work 
D)  a computer technician has installed the latest software updates, but you have not received an invoice or made payment 
A)  a computer technician has installed the latest software updates and was paid on the same day 
B)  a computer technician has been paid in advance to install software updates as they become available 
C)  a computer technician has just signed an agreement with you regarding pricing for future work 
D)  a computer technician has installed the latest software updates, but you have not received an invoice or made payment

Unearned revenue is a liability.

If the effect of the credit portion of an adjusting entry is to increase the balance of a revenue account, which of the following describes the effect of the debit portion of the entry?

The following adjusting journal entry does not include an explanation. Select the best explanation for the entry.

If the debit portion of an adjusting entry is to an asset account, then the credit portion must be to a liability account.

Which of the following is considered to be an accrued expense?

Accounting and Business

Double-Entry Accounting

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters

Exam 3: Adjustments: Accruals and Deferrals

Unearned revenue is a liability.

If the effect of the credit portion of an adjusting entry is to increase the balance of a revenue account, which of the following describes the effect of the debit portion of the entry?

The following adjusting journal entry does not include an explanation. Select the best explanation for the entry.

If the debit portion of an adjusting entry is to an asset account, then the credit portion must be to a liability account.

Which of the following is considered to be an accrued expense?

Accounting and Business

Double-Entry Accounting

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters