Financial Accounting Quiz and TestAdjusting Entries quiz 10/06/2026 1 min read Adjusting Entries 10 questions in 10 minutes Pass Score 70% 1 / 10 Each of the following is a major type (or category) of adjusting entriesexcept: accrued expenses prepaid expenses recognized revenues accrued revenues 2 / 10 Adjustments for accrued revenues : have an assets and revenues account relationship have a liabilities and revenues account relationship decrease assets and revenues decrease liabilities and increase revenues 3 / 10 The principle or assumption dictating that efforts (expenses) be matched with accomplishments (revenues) is the : time period assumption cost assumption revenue recognition principle expense recognition principle 4 / 10 Which item is a constraint in fnancial accounting ? Materiality Consistency Cost Comparability 5 / 10 Accumulated Depreciation is : a liability account an expense account a contra asset account an owner’s equity account 6 / 10 The revenue recognition principle states that : the economic life of a business can be divided into artificial time periods expenses should be matched with revenues revenue should be recognized in the accounting period in which a performance obligation is satisfed the fiscal year should correspond with the calendar year 7 / 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 recorded only when cash is received,and expense is recorded only when cash is paid Events that change a company’s financial statements are recorded in the periods in which the events occur Revenue is recognized in the period in which services are performed 8 / 10 Which of the following statements isincorrectconcerning the adjusted trial balance ? The adjusted trial balance lists the account balances segregated by assets and liabilities 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 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 9 / 10 Adjustments for unearned revenues : increase assets and increase revenues have an assets and revenues account relationship decrease revenues and decrease assets decrease liabilities and increase revenues 10 / 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 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 🚀 Join Telegram Group 📢 Telegram Channel 📘 Facebook Group 👍 Facebook Page 📌 Pinterest
