acc101 6

QN=158 Adjusting entries are journal entries made at the end of an accounting period for the purpose of:

• a. Updating liability and asset accounts to their proper balances.

• .b. Assigning revenues to the periods in which they are earned.

• c. Assigning expenses to the periods in which they are incurred.

• d. Assuring that financial statements reflect the revenues earned and the expenses incurred

• e. All of these.

QN=159 The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is:

• a. Cash basis accounting.

• .b. The matching principle

• c. The time period principle

• d. Accrual basis accounting.

• e. Revenue basis accounting.

QN=160 Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of:

• a. Items that require contra accounts.

• b. Items that require adjusting entries.

• c. Asset and equity

• d. Asset accounts

• e. Income statement accounts.

QN= 161 Which of the following statements is incorrect?

• a. Adjustments to prepaid expenses, depreciation, and unearned revenues involve previously recorded assets and liabilities.

• b. Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded

• .c. Adjusting entries can be used to record both accrued expenses and accrued revenues.

• d. Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time.

• e. Adjusting entries affect the cash account.

QN=162 An adjusting entry could be made for each of the following except:

• a. Prepaid expenses.

• b. Depreciation.

• c. Owner withdrawals

• d. Unearned revenues

• e. Accrued revenues.

QN=163 An adjusting entry could be made for each of the following except:a. Prepaid expenses.b. Depreciation.c. Suppliesd. Unearned revenues.e. Owner capital

• a. Prepaid expenses.

• b. Depreciation.

• c. Supplies

• d. Unearned revenues.

• e. Owner capital

QN=164 An adjusting entry could be made for each of the following except:

• a. Prepaid expenses.

• Depreciation.

• c. Cash.

• d. Accrued expensese.

• e. Accrued revenues

QN=166 An adjusting entry could be made for each of the following except:

• a. Prepaid expenses

• b. Supplies

• c. Unearned revenues.

• d. Account payable.

• e. Accrued revenues.

QN=167 An adjusting entry could be made for each of the following except:

• a. Accrued expenses.

• b. Depreciation

• c. Unearned revenues.

• d. Revenue.

• e. Accrued revenues.

QN=168 An adjusting entry could be made for each of the following except:

• a. Prepaid expenses

• .b. Supplies.

• c. Unearned revenues.

• d. Accrued expenses

• e. Cost of goods sold