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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.  Purchaser's description of a cash discount received from a supplier of goods
A.
B.
C.
D.
E.
2.  True or False. Under a perpetual inventory system, there is no need to conduct a physical inventory count
A.
B.
3.  The minor expense of a merchandiser is cost of goods sold
A.
B.
4.  What is the purpose of the adjusting entry under the Expense Method?
A.
B.
C.
D.
E.
5.  ________ It is defined as the systematic allocation of the cost of an asset over its useful life.
6.  In general, the accounts in the income statement are
A.
B.
C.
D.
7.  Reduction in a receivable or a payable that is granted if it is paid within the discount period
A.
B.
C.
D.
E.
8.  Under the perpetual inventory system, the ending inventory is determined by a physical count and is recorded in the Merchandise Inventory Account
A.
B.
9.  The principle which dictates that efforts be matched with accomplishments is the:
A.
B.
C.
D.
E.
10.  Adjusting entries are made to ensure that:
A.
B.
C.
D.
E.
11.  The net increase in owner's equity that results from business operations is called:
A.
B.
C.
D.
12.  The Unearned Revenue account is listed in the 
A.
B.
C.
D.
E.
13.  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.
14.  One of the following statements about the accrual basis of accounting is false. That statement is/are:
A.
B.
C.
D.
E.
15.  Each of the following is major type (category) of adjusting entries, except:
A.
B.
C.
D.
E.
16.  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.
17.  Adjustments for unearned revenues:
A.
B.
C.
D.
E.
18.  Which of the following is/are a purpose of adjusting entries?
A.
B.
C.
D.
E.
19.  The adjusted trial balance is a list of accounts and their balances at
A.
B.
C.
D.
E.
20.  Accrual accounting involves all of the following except
A.
B.
C.
D.
E.
21.  What it the purpose of the adjusting entry under the Liability Method?
A.
B.
C.
D.
E.
22.  Adjusting entries are used to
A.
B.
C.
D.
E.
23.  The time period assumption states that:
A.
B.
C.
D.
E.
24.  A purchase of office supplies that was recorded in the Office Equipment account would require a correcting entry that
A.
B.
C.
D.
E.
25.  Under the periodic inventory system entries to the inventory account are made:
A.
B.
C.
D.
26.  ______is equal to Net sales minus cost of goods sold
27.  In the adjustments column of the worksheet, the debit to the Merchandise Inventory account represents
A.
B.
C.
D.
E.
28.  The second adjusting entry for merchandise inventory under the periodic system, is 
A.
B.
C.
D.
E.
29.  The second adjusting entry for merchandise inventory, when using the periodic inventory system, causes a zero balance in the Merchandise Inventory account
A.
B.
30.  A business can choose a fiscal year that corresponds to
A.
B.
C.
D.
E.
31.  Which of the following is an adjunct account?
A.
B.
C.
D.
E.
32.  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.
33.  A contra asset account is an account that is added to another asset account
A.
B.
34.  If adjusting entries are recorded in the worksheet, there is no need for them to be journalized or posted
A.
B.
35.  _______is the merchandise a company owns and expects to sell to customers
36.  Accounts that are partly income statement accounts and balance sheet accounts are called dual accounts
A.
B.
37.  Which of the following is an example of a deferral?
A.
B.
C.
D.
E.
38.  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.
39.  Adjustments for accrued revenues:
A.
B.
C.
D.
E.
40.  Cost of goods sold is equal to:
A.
B.
C.
D.
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