ADJUSTMENTS AT THE END OF ACCOUNTING PERIOD

What type of accounts are Interest Receivable and Fees Receivable?

• Asset

• Liability

• Revenue

• Expense

What type of Unearned Revenues Account?

• Asset

• Liability

• Owner's Equity

• Revenues

What type of accounts are Prepaid Insurance, Prepaid Advertising, and Prepaid Expenses?

• Asset

• Liability

• Owner's Equity

• Expense

What type of entry will decrease the normal balances of the accounts Prepaid Insurance and Prepaid Expenses, and Insurance Expense?

• Debit

• Credit

What type of accounts are Accumulated Depreciation and Allowance for Doubtful Accounts?

• Liability

• Owner's Equity

• Contra Asset

• Asset

Which of the following will be included in the adjusting entry to accrue interest expense?

• Debit to Cash

• Credit to Interest Payable

• Debit to Interest Payable

• Debit to Prepaid Interest

The adjusting entry that reduces the balance in Prepaid Insurance will also include which of the following?

• Credit to Cash

• Credit to Insurance Expense

• Debit to Insurance Expense

• Debit to Insurance Payable

The adjusting entry that reduces the balance in Unearned Revenues will also include which of the following?

• Debit to Cash

• Credit to Fees Earned

• Debit to Fees Earned

• Credit to Fees Receivable

Typically an adjusting entry will include which of the following?

• One Statement of Comprehensive Income & One Statement of Financial Position

• Two Statement of Financial Position

• Two Statement of Comprehensive Income

The ending balance in the account Prepaid Insurance is expected to report which of the following?

• The Accrued Amount of Insurance Expense

• The Original Amount of The Insurance Premiums Paid

• The Expired Portion of The Insurance Premiums Paid

• The Unexpired Portion of The Insurance Premiums Paid