FABM1_Adjusting Entries Quiz

What accounting principle requires matching revenues with related expenses?

• Cash basis accounting

• Accrual basis accounting

• Matching principle

• Revenue recognition concept

What type of adjusting entry involves recognizing expenses that have been incurred but not yet paid?

• Accrued expenses

• Prepaid expenses

• Unearned revenue

• Depreciation expense

Which account is debited when recording depreciation expense?

• Accumulated depreciation

• Depreciation expense

• Asset account

• Liability account

Which accounting concept supports reporting revenues when they are earned, regardless of when cash is received?

• Cash basis accounting

• Matching concept

• Accrual basis accounting

• Revenue recognition concept

Which adjusting entry records revenue that has been earned but not yet received?

• Accrued revenue

• Prepaid revenue

• Unearned revenue

• Depreciation expense

What is the contra-asset account used to record accumulated depreciation?

• Depreciation expense

• Prepaid expense

• Allowance for doubtful accounts

• Accumulated depreciation

Which type of adjusting entry involves recognizing revenue received in advance?

• Accrued revenue

• Prepaid revenue

• Unearned revenue

• Depreciation expense

Which method records prepaid expenses as assets initially?

• Expense method

• Liability method

• Asset method

• Revenue method

Which type of adjusting entry involves recognizing expenses that have been incurred but not yet paid?

• Accrued expenses

• Prepaid expenses

• Unearned revenue

• Depreciation expense

When are adjusting entries prepared?

• At the beginning of the accounting period

• Monthly

• At the end of the accounting period

• Quarterly