When the cash is collected, regardless of when the services are performed
When the services are performed, regardless of when the cash is received
Either when the cash is received or the sale is made
Not needed under the accrual basis of accounting
Prepared at the option of the accountant
Prepared at the beginning of the accounting period to update all accounts.
Prepared at the end of the accounting period to update certain accounts.
Accumulated depreciation less the cost of the asset
Cost of the asset
Balance in the accumulated depreciation account
Cost of the asset less the accumulated depreciation
Debit supplies of $150 and a credit of $150 to Supplies Expense
Debit supplies Expense of $150 and a credit of $150 to Supplies
Debit supplies Expense of $650 and a credit of $650 to Supplies
There is not enough information given to prepare the entry
Expense or revenue is not recorded after the cash settlement
Liability is recorded after the cash settlement
Expense or revenue is recorded before the cash settlement
Asset is recorded only after the cash settlement
Unadjusted trial balance
Adjusted trial balance
Increases expenses and decreases assets
Increases expenses and increases liabilities
Decreases expenses and increases liabilities
Decreases expenses and increases assets
The adjustment has no effect on net income
The adjustment increases net income for the period
The adjustment decreases net income for the period
The effect of the adjustment cannot be determined with the information given
The adjusting process updates the balance sheet.
Every adjusting entry affects the balance sheet and the income statement.
Adjustments are made during the month.
The main adjusting entries are deferrals, depreciation and accruals.
Adjusted trial balance
Post-close trial balance
Asset and liability accounts
None of the above
Both the balance sheet and the income statement
Neither the balance sheet nor the income statement
The balance sheet only
The income statement only
) the 2010 income statement
The 2011 income statement
Neither the 2010 nor the 2011 income statement
Both the 2010 and 2011 income statements
Before it has been earned
When the cash is received
When it has been earned
Whenever the company needs to record the revenue