The accounts department is one of the most important in an organization. An organization has a lot of transactions that lead to a change in the status of a company. Today we covered how to adjust different entries in the books of accounts. The quiz below is set to help you review the topic in full. Give it a try!
To update the accounts in the books
To apply the matching principle
To properly reflect the the correct net income
To make the equation A=L+OE more accurate
All of the above
Purchase Returns and Allowances
Sales Returns and Allowances
Accumulated Depreciation
Premium on Bonds
Purchase Discount
To record an accurate amount of inventory on the balance sheet
That both the beginning and ending inventory amounts must appear as separate figures on the income statement.
To make adjustments for losses due to error, shrinkage or theft
All of these
None of these
Debit Income Summary and credit Merchandise Inventory
Debit Merchandise Inventory and credit Income Summary
Debit Cost of Goods Sold and credit Merchandise Inventory
Debit Merchandise Inventory and credit Cost of Goods Sold
None of the above
True
False
Statement of Financial Performance
Statement of Financial Position
Bank Statement
Statement of Changes in Equity
Cash Flow Statement
Beginning inventory
Ending inventory
The difference between the beginning and ending inventory
The total of the beginning and ending inventory
None of these
To record the unused portion of the asset.
To record the expired portion of the asset
To record the purchase of the asset
All of the above
None of the Above
To record the earned portion of the revenue received in advance.
To record the unearned portion of the revenue received in advance.
To record the receipt of the cash
All of the above
None of the above
Net income
Revenue
An expense
An asset
Permanent accounts
Temporary accounts
Unearned revenue accounts
Contra-asset account
The calendar year
The natural business year
Any twelve-month period
Any of the above
A and C only
Accounting period
Continuity assumption
Matching rule
Recognition rule
Recording all revenues when cash was received
Applying the matching rule
Recognizing expense when incurred
Adjusting the accounts
All of the above
Apportioning costs between two or more periods
Recognizing an accrued expense
Recognizing an unearned revenue
Recognizing an accrued revenue
All of the above
Make financial statements from one period to the next more comparable
Make net income reflect cash flow
Correct errors in the recording of earlier transactions
Record initial transactions
None of the above
The beginning of the accounting period
The end of the accounting period
The end of the accounting period immediately after adjusting entries have been posted
Any point during the accounting period
The end of the accounting period immediately before adjusting entries have been posted
Credits Office Supplies
Credits Cash
Debits Office Equipment
Credits Office Equipment
None of the above
Revenue should be recognized in the accounting period in which it is earned
Expenses should be matched with revenues
The economic life of a business can be divided into artificial time periods
The fiscal year should correspond with the calendar year
Same definition with accrual accounting
Matching principle
Cost principle
Periodicity principle
Revenue recognition principle
None of the above
Expenses are recognized in the period in which they are incurred
Revenues are recorded in the period on which they are earned
Balance sheet and income statement accounts have correct balances at the end of the accounting period
All of the above
Only a and b
Prepaid expenses
Accrued revenues
Accrued expenses
Earned revenues
None of the above
Decrease liabilities and increase revenues
Have an assets and revenues account relationship
Increase assets and increase revenues
Decrease revenues and decrease assets
B and d
Have a liabilities and revenues account relationship
Have an assets and revenues account relationship
Decrease assets and revenues
Decrease liabilities and increase revenues
C and d