Question 1

Adjusting entries are used to:

Accepted Answer

A)  Close temporary accounts at year end
B)  Close permanent accounts at year-end
C)  Bring account balances up to date at year end
D)  All the choices are correct C

Question 2

Sales are recorded under cash basis accounting when:

Accepted Answer

A)  The goods or services are provided regardless of whether the cash is collected from the customers
B)  The bookkeeper has time to record the transactions
C)  The cash is collected from the customers
D)  The costs are incurred to earn the revenue C

Question 3

To record adjusting journal entries in QuickBooks,select:

Accepted Answer

A)  Company Center > Journal Entry icon
B)  Accountant Menu > Make General Journal Entries
C)  Banking section of the Home Page > Journal Entry icon
D)  Company section of the Home Page > Journal Entry icon B

Question 4

Prepaid items for which adjusting entries may be necessary include all of the following except:

Accepted Answer

A)  Prepaid insurance
B)  Prepaid Rent
C)  Accrued Interest
D)  Office Supplies

Question 5

What is the difference between the cash basis and the accrual basis?

Accepted Answer

The answer of What is the difference between the cash...

Question 6

Types of adjusting entries include all of the following except:

Accepted Answer

A)  Prepaid Items
B)  Accrued Revenues
C)  Accrued Expenses
D)  Accrued Cash

Question 7

The Trial Balance:

Accepted Answer

A)  Lists all the company's accounts,all transactions affecting accounts,and ending account balances
B)  Is prepared before making adjustments
C)  Is prepared after financial statements are prepared
D)  Verifies there are no errors in the entire accounting system

Question 8

Unearned revenue occurs when:

Accepted Answer

A)  Customers pay after receiving a service
B)  Customers pay in advance of receiving a service
C)  Customers default and do not pay you what is owed
D)  All the choices are correct

Question 9

Adjusting entries for accrued expenses typically include which of the following related types of accounts:

Accepted Answer

A)  Revenue and Liability accounts
B)  Revenue and Asset accounts
C)  Expense and Liability accounts
D)  Expense and Asset accounts

Question 10

Adjusting entries for accrued revenues typically include which of the following related types of accounts:

Accepted Answer

A)  Revenue and Liability accounts
B)  Revenue and Asset accounts
C)  Expense and Liability accounts
D)  Expense and Asset accounts

Question 11

What is an asset?

Accepted Answer

A)  What remains after the liabilities are satisfied
B)  What a company owes
C)  What a company owns
D)  The excess of revenues over expenses

Question 12

To print an Adjusted Trial Balance,select:

Accepted Answer

A)  Reports Center > Accountant & Taxes
B)  Company Center > Company & Financials
C)  Reports Center > Company & Financials
D)  Company Center > Accountant & Taxes

Question 13

Adjusting entries for unearned items typically include which of the following related types of accounts:

Accepted Answer

A)  Revenue and Liability accounts
B)  Revenue and Asset accounts
C)  Expense and Liability accounts
D)  Expense and Asset accounts

Question 14

Briefly explain 2 (two)differences between depreciation on a tax return and on a financial statement.

Accepted Answer

The answer of Briefly explain 2 (two)differences between depreciation on...

Question 15

If a count of office supplies on hand reveal $100 of supplies unused at year-end and the Office Supplies on Hand account has a balance of $350,the adjusting entry to bring the Office Supplies on Hand up to date at year-end should include:

Accepted Answer

A)  Debit Office Supplies on Hand $100,Credit Office Supplies Expense $100
B)  Debit Office Supplies on Hand $150,Credit Office Supplies Expense $150
C)  Debit Office Supplies Expense $100,Credit Office Supplies on Hand $100
D)  Debit Office Supplies Expense $250,Credit Office Supplies on Hand $250

Question 16

An accounting period may be:

Accepted Answer

A)  One quarter
B)  One month
C)  One year
D)  All the choices are correct

Question 17

To prepare a Trial Balance,select:

Accepted Answer

A)  Reports Center > Accountant & Taxes
B)  Company Center > Company & Financials
C)  Reports Center > Company & Financials
D)  Company Center > Accountant & Taxes

Question 18

The order of the steps in the accounting cycle includes:

Accepted Answer

A)  Adjusted Trial Balance,financial reports,adjusting entries,Trial Balance
B)  Adjusted Trial Balance,adjusting entries,financial reports,Trial Balance
C)  Trial Balance,adjusting entries,Adjusted Trial Balance,financial reports
D)  Trial Balance,financial reports,adjusting entries,Adjusted Trial Balance

Question 19

Adjusting entries for prepaid items typically include which of the following related types of accounts:

Accepted Answer

A)  Revenue and Liability accounts
B)  Revenue and Asset accounts
C)  Expense and Liability accounts
D)  Expense and Asset accounts

Question 20

Adjusting entries should be made:

Accepted Answer

A)  Before preparing an Adjusted Trial Balance
B)  After preparing financial statements
C)  After preparing an Adjusted Trial Balance
D)  Before preparing a Trial Balance

Exam 9: Adjustments

Adjusting entries are used to:

Sales are recorded under cash basis accounting when:

To record adjusting journal entries in QuickBooks,select:

Prepaid items for which adjusting entries may be necessary include all of the following except:

What is the difference between the cash basis and the accrual basis?

Types of adjusting entries include all of the following except:

The Trial Balance:

Unearned revenue occurs when:

Adjusting entries for accrued expenses typically include which of the following related types of accounts:

Adjusting entries for accrued revenues typically include which of the following related types of accounts:

What is an asset?

To print an Adjusted Trial Balance,select:

Adjusting entries for unearned items typically include which of the following related types of accounts:

Briefly explain 2 (two)differences between depreciation on a tax return and on a financial statement.

If a count of office supplies on hand reveal $100 of supplies unused at year-end and the Office Supplies on Hand account has a balance of $350,the adjusting entry to bring the Office Supplies on Hand up to date at year-end should include:

An accounting period may be:

To prepare a Trial Balance,select:

The order of the steps in the accounting cycle includes:

Adjusting entries for prepaid items typically include which of the following related types of accounts:

Adjusting entries should be made: