Adjusting Entries Quiz

Adjusting Entries

10 questions in 10 minutes

Pass Score 70%

1 / 10

Accumulated Depreciation is :

an owner’s equity account

a liability account

a contra asset account

an expense account

2 / 10

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

recognized revenues

prepaid expenses

accrued revenues

accrued expenses

3 / 10

Adjustments for prepaid expenses :

decrease expenses and increase assets

decrease assets and increase expenses

decrease revenues and increase assets

decrease assets and increase revenues

4 / 10

Adjustments for unearned revenues :

decrease revenues and decrease assets

increase assets and increase revenues

decrease liabilities and increase revenues

have an assets and revenues account relationship

5 / 10

The time period assumption states that :

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

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

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

companies use the fiscal year to report financial information

6 / 10

Adjusting entries are made to ensure that :

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

revenues are recorded in the period in which services are performed

All the responses above are correct

7 / 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 lists the account balances segregated by assets and liabilities

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

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

8 / 10

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

revenue recognition principle

time period assumption

expense recognition principle

cost assumption

9 / 10

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

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

This basis is in accord with generally accepted accounting principles

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

Revenue is recognized in the period in which services are performed

10 / 10

The revenue recognition principle states that :

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

revenue should be recognized in the accounting period in which a performance obligation is satisfed

the fiscal year should correspond with the calendar year

expenses should be matched with revenues

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

Introduction to Accounting quiz

Accounting Cycle quiz

Financial Reporting Standards quiz

💬 Leave a Comment Cancel reply