Adjusting Entries Quiz
17 multiple-choice questions with answers and explanations · 6 easy, 9 medium, 2 hard
Year-end adjustments for accrued and deferred items and depreciation, the adjusted trial balance, reversing entries, and the effect of a missed adjustment on profit.
- 1Supplies Adjusting EntryA company bought $1,000 of supplies during the year. A year-end count shows $400 still on hand. Supplies Expense for the year is:easy
- 2Accrued Revenue — The Adjusting EntryServices worth $2,500 were performed in December but will not be billed until January. The December 31 adjusting entry is:easy
- 3What Are Adjusting Entries in Accounting?Adjusting entries are made at the end of an accounting period in order to:easy
- 4Types of Adjusting Entries: Which One Is Not an Adjustment?Which of the following is NOT an adjusting entry?easy
- 5Adjusting Entry for Accrued WagesAt the year-end, employees have earned $1,800 of wages that will not be paid until next month. The adjusting entry is:easy
- 6Do Adjusting Entries Ever Involve Cash?Which account is NEVER part of a year-end adjusting entry for an accrual or a prepayment?easy
- 7Accrued ExpensesAccrued expenses (accrued liabilities) arise when:medium
- 8Prepaid ExpensesA company pays $12,000 on 1 January for a 12-month insurance policy. At 31 March, the prepaid insurance balance on the balance sheet is:medium
- 9Purpose of Reversing EntriesOptional reversing entries made on the first day of a new period are designed to:medium
- 10Adjusting Entry for DepreciationThe year-end adjusting entry to record depreciation on equipment is:medium
- 11Effect of Omitting an Accrued Expense Adjusting EntryIf the year-end adjusting entry for accrued wages is omitted, the financial statements will show:medium
- 12Effect of Omitting a Prepaid Expense Adjusting EntryA business debited Insurance Expense with a full premium, half of which covers next year. If no year-end adjustment is made, the financial statements will show:medium
- 13Rent Received in Advance: Adjusting Entry When Income Was CreditedOn 1 December a landlord received $3,000 covering rent for December, January and February and credited it all to Rent Income. The adjusting entry at 31 December is:medium
- 14Adjusted Trial Balance: What Is It For?An adjusted trial balance is prepared:medium
- 15Reversing Entries: Which Adjusting Entry Is Commonly Reversed?Which year-end adjusting entry is commonly reversed on the first day of the next period?medium
- 16Paying an Accrued Expense in the Next Period Without a Reversing EntryAt 31 December $900 of wages were accrued. On 5 January $2,400 of wages are paid, including the $900. No reversing entry was made. The 5 January entry is:hard
- 17Adjusting Entries: Effect of Four Adjustments on Net ProfitProfit before adjustments is $42,000. Year-end adjustments are needed for: accrued expenses $2,500; prepaid expenses $1,200; accrued income $900; income received in advance $600. What is the adjusted profit?hard