Adjusting Entries Quiz

Adjusting Entries

10 questions in 10 minutes

Pass Score 70%

1 / 10

Which of the following statements about the accrual basis of accounting isfalse?

This basis is in accord with generally accepted accounting principles

Revenue is recognized in the period in which services are performed

Events that change a company’s financial statements are recorded in the periods in which the events occur

Revenue is recorded only when cash is received,and expense is recorded only when cash is paid

2 / 10

Adjustments for unearned revenues :

decrease liabilities and increase revenues

have an assets and revenues account relationship

decrease revenues and decrease assets

increase assets and increase revenues

3 / 10

Adjustments for prepaid expenses :

decrease revenues and increase assets

decrease assets and increase revenues

decrease assets and increase expenses

decrease expenses and increase assets

4 / 10

Each of the following is a major type (or category) of adjusting entriesexcept:

prepaid expenses

accrued revenues

accrued expenses

recognized revenues

5 / 10

Which item is a constraint in fnancial accounting ?

Cost

Materiality

Consistency

Comparability

6 / 10

The time period assumption states that :

the economic life of a business can be divided into artificial time periods

companies must wait until the calendar year is completed to prepare financial statements

companies use the fiscal year to report financial information

companies record information in the time period in which the events occur

7 / 10

The principle or assumption dictating that efforts (expenses) be matched with accomplishments (revenues) is the :

expense recognition principle

time period assumption

revenue recognition principle

cost assumption

8 / 10

Adjusting entries are made to ensure that :

revenues are recorded in the period in which services are performed

balance sheet and income statement accounts have correct balances at the end of an accounting period

expenses are recognized in the period in which they are incurred

All the responses above are correct

9 / 10

Accumulated Depreciation is :

a liability account

a contra asset account

an expense account

an owner’s equity account

10 / 10

Which of the following statements isincorrectconcerning the adjusted trial balance ?

An adjusted trial balance proves the equality of the total debit balances and the total credit balances in the ledger after all adjustments are made

The adjusted trial balance is prepared after the adjusting entries have been journalized and posted

The adjusted trial balance lists the account balances segregated by assets and liabilities

The adjusted trial balance provides the primary basis for the preparation of financial statements

Your score is

Adjusting Entries quiz

10 questions in 10 minutes

Pass Score 70%

Question topics

💬 Leave a Comment Cancel reply

10 questions in 10 minutes

Pass Score 70%

Question topics

Related Posts

Accounting For Merchandising quiz

Balance Sheet quiz level 2

Income Statement quiz level 2

💬 Leave a Comment Cancel reply