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Adjusting Entries

40 Questions  I  By An_pangader1987
Adjusting Entries
Online quiz number 1

  
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Question Excerpt

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1.  _______is the merchandise a company owns and expects to sell to customers
2.  Adjusting entries are used to
A.
B.
C.
D.
E.
3.  If adjusting entries are recorded in the worksheet, there is no need for them to be journalized or posted
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.  Cost of goods sold is equal to:
A.
B.
C.
D.
6.  Adjusting entries are made to ensure that:
A.
B.
C.
D.
E.
7.  A contra asset account is an account that is added to another asset account
A.
B.
8.  The principle which dictates that efforts be matched with accomplishments is the:
A.
B.
C.
D.
E.
9.  Adjustments for accrued revenues:
A.
B.
C.
D.
E.
10.  Which of the following is an adjunct account?
A.
B.
C.
D.
E.
11.  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.
12.  Each of the following is major type (category) of adjusting entries, except:
A.
B.
C.
D.
E.
13.  The Unearned Revenue account is listed in the 
A.
B.
C.
D.
E.
14.  True or False. Under a perpetual inventory system, there is no need to conduct a physical inventory count
A.
B.
15.  A purchase of office supplies that was recorded in the Office Equipment account would require a correcting entry that
A.
B.
C.
D.
E.
16.  The second adjusting entry for merchandise inventory under the periodic system, is 
A.
B.
C.
D.
E.
17.  Accrual accounting involves all of the following except
A.
B.
C.
D.
E.
18.  Which of the following is an example of a deferral?
A.
B.
C.
D.
E.
19.  In the adjustments column of the worksheet, the debit to the Merchandise Inventory account represents
A.
B.
C.
D.
E.
20.  The net increase in owner's equity that results from business operations is called:
A.
B.
C.
D.
21.  Accounts that are partly income statement accounts and balance sheet accounts are called dual accounts
A.
B.
22.  Under the perpetual inventory system, the ending inventory is determined by a physical count and is recorded in the Merchandise Inventory Account
A.
B.
23.  ________ It is defined as the systematic allocation of the cost of an asset over its useful life.
24.  One of the following statements about the accrual basis of accounting is false. That statement is/are:
A.
B.
C.
D.
E.
25.  The minor expense of a merchandiser is cost of goods sold
A.
B.
26.  Under the periodic inventory system entries to the inventory account are made:
A.
B.
C.
D.
27.  What is the purpose of the adjusting entry under the Expense Method?
A.
B.
C.
D.
E.
28.  The adjusted trial balance is a list of accounts and their balances at
A.
B.
C.
D.
E.
29.  A business can choose a fiscal year that corresponds to
A.
B.
C.
D.
E.
30.  Adjustments for unearned revenues:
A.
B.
C.
D.
E.
31.  ______is equal to Net sales minus cost of goods sold
32.  Which of the following is/are a purpose of adjusting entries?
A.
B.
C.
D.
E.
33.  In general, the accounts in the income statement are
A.
B.
C.
D.
34.  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.
35.  Purchaser's description of a cash discount received from a supplier of goods
A.
B.
C.
D.
E.
36.  The time period assumption states that:
A.
B.
C.
D.
E.
37.  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.
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.  What it the purpose of the adjusting entry under the Liability Method?
A.
B.
C.
D.
E.
40.  Reduction in a receivable or a payable that is granted if it is paid within the discount period
A.
B.
C.
D.
E.
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