Adjusting Entries

40 Questions  I  By An_pangader1987
Please take the quiz to rate it.

Accounting Quizzes & Trivia
Online quiz number 1

  
Changes are done, please start the quiz.


Questions and Answers

Removing question excerpt is a premium feature

Upgrade and get a lot more done!
1.  True or False. Under a perpetual inventory system, there is no need to conduct a physical inventory count
A.
B.
2.  Under the periodic inventory system entries to the inventory account are made:
A.
B.
C.
D.
3.  Under the perpetual inventory system, the ending inventory is determined by a physical count and is recorded in the Merchandise Inventory Account
A.
B.
4.  When revenues and expenses are equal for the same accounting period, it is called the matching principle and there is neither a loss or a profit
A.
B.
5.  The adjusted trial balance is a list of accounts and their balances at
A.
B.
C.
D.
E.
6.  The principle which dictates that efforts be matched with accomplishments is the:
A.
B.
C.
D.
E.
7.  The Unearned Revenue account is listed in the 
A.
B.
C.
D.
E.
8.  Adjustments for unearned revenues:
A.
B.
C.
D.
E.
9.  Each of the following is major type (category) of adjusting entries, except:
A.
B.
C.
D.
E.
10.  Which of the following is/are a purpose of adjusting entries?
A.
B.
C.
D.
E.
11.  The minor expense of a merchandiser is cost of goods sold
A.
B.
12.  In the adjustments column of the worksheet, the debit to the Merchandise Inventory account represents
A.
B.
C.
D.
E.
13.  Purchaser's description of a cash discount received from a supplier of goods
A.
B.
C.
D.
E.
14.  The net increase in owner's equity that results from business operations is called:
A.
B.
C.
D.
15.  Cost of goods sold is equal to:
A.
B.
C.
D.
16.  Adjusting entries are made to ensure that:
A.
B.
C.
D.
E.
17.  What it the purpose of the adjusting entry under the Liability Method?
A.
B.
C.
D.
E.
18.  ______is equal to Net sales minus cost of goods sold
19.  Assigning revenues to the accounting period in which goods are delivered or services performed and expenses to the accounting period in which they are used to produce revenues is called the
A.
B.
C.
D.
20.  Adjustments for accrued revenues:
A.
B.
C.
D.
E.
21.  If adjusting entries are recorded in the worksheet, there is no need for them to be journalized or posted
A.
B.
22.  A business can choose a fiscal year that corresponds to
A.
B.
C.
D.
E.
23.  A purchase of office supplies that was recorded in the Office Equipment account would require a correcting entry that
A.
B.
C.
D.
E.
24.  The time period assumption states that:
A.
B.
C.
D.
E.
25.  A contra asset account is an account that is added to another asset account
A.
B.
26.  One of the following statements about the accrual basis of accounting is false. That statement is/are:
A.
B.
C.
D.
E.
27.  Which of the following is an adjunct account?
A.
B.
C.
D.
E.
28.  In general, the accounts in the income statement are
A.
B.
C.
D.
29.  _______is the merchandise a company owns and expects to sell to customers
30.  Subscriptions received in advance by a publishing company is called unearned revenue if the subscriptions revenue will be earned in one fiscal period
A.
B.
31.  ________ It is defined as the systematic allocation of the cost of an asset over its useful life.
32.  When using the periodic inventory system, the main reason for the adjusting the asset account Merchandise Inventory in two steps is
A.
B.
C.
D.
E.
33.  Reduction in a receivable or a payable that is granted if it is paid within the discount period
A.
B.
C.
D.
E.
34.  What is the purpose of the adjusting entry under the Expense Method?
A.
B.
C.
D.
E.
35.  Accrual accounting involves all of the following except
A.
B.
C.
D.
E.
36.  The second adjusting entry for merchandise inventory under the periodic system, is 
A.
B.
C.
D.
E.
37.  Which of the following is an example of a deferral?
A.
B.
C.
D.
E.
38.  The second adjusting entry for merchandise inventory, when using the periodic inventory system, causes a zero balance in the Merchandise Inventory account
A.
B.
39.  Adjusting entries are used to
A.
B.
C.
D.
E.
40.  Accounts that are partly income statement accounts and balance sheet accounts are called dual accounts
A.
B.
Back to top

Removing ad is a premium feature

Upgrade and get a lot more done!
Take Another Quiz
We have sent an email with your new password.