Adjusting Entries quiz Financial Accounting Quiz On Mar 16, 2024 Share /10 12345678910 Adjusting Entries 10 questions in 10 minutes Answers at the end of the exam Pass Score 70% enter full-screen mode by pressing the icon located in the top- right comer of the exam 1 / 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 2 / 10 Which of the following statements is incorrect concerning 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 provides the primary basis for the preparation of financial statements The adjusted trial balance lists the account balances segregated by assets and liabilities 3 / 10 Each of the following is a major type (or category) of adjusting entries except : accrued expenses recognized revenues accrued revenues prepaid expenses 4 / 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 5 / 10 Adjustments for accrued revenues : have a liabilities and revenues account relationship decrease assets and revenues decrease liabilities and increase revenues have an assets and revenues account relationship 6 / 10 The time period assumption states that : companies use the fiscal year to report financial information companies must wait until the calendar year is completed to prepare financial statements the economic life of a business can be divided into artificial time periods companies record information in the time period in which the events occur 7 / 10 The revenue recognition principle states that : the fiscal year should correspond with the calendar year revenue should be recognized in the accounting period in which a performance obligation is satisfed expenses should be matched with revenues the economic life of a business can be divided into artificial time periods 8 / 10 Which item is a constraint in fnancial accounting ? Comparability Materiality Cost Consistency 9 / 10 Adjusting entries are made to ensure that : expenses are recognized in the period in which they are incurred balance sheet and income statement accounts have correct balances at the end of an accounting period All the responses above are correct revenues are recorded in the period in which services are performed 10 / 10 Adjustments for prepaid expenses : decrease assets and increase revenues decrease assets and increase expenses decrease revenues and increase assets decrease expenses and increase assets Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback Question topics Adjusting Entries the accrual basis of accounting Adjusting entries for deferrals Adjusting entries for accruals accountingaccounting adjusting entriesaccounting adjusting entries quiz