Question 1

If the debit portion of an adjusting entry is to an asset account, then the credit portion must be to a liability account.

Accepted Answer

A) True 
 B)False

Question 2

Unearned revenue is a liability.

Accepted Answer

A) True 
 B)False

Question 3

The following adjusting journal entry does not include an explanation. Select the best explanation for the entry.

Accepted Answer

A)   Record supplies used.
B)   Record purchase of supplies.
C)   Reduce supplies expense.
D)   Record sale of supplies.

Question 4

If the effect of the credit portion of an adjusting entry is to increase the balance of a revenue account, which of the following describes the effect of the debit portion of the entry?

Accepted Answer

A)   increases the balance of a contra revenue account
B)   decreases the balance of an asset account
C)   increases the balance of a stockholders' equity account
D)   decreases the balance of a liability account

Question 5

Which of the following is considered to be an accrued expense?

Accepted Answer

A)   a computer technician has installed the latest software updates and was paid on the same day
B)   a computer technician has been paid in advance to install software updates as they become available
C)   a computer technician has just signed an agreement with you regarding pricing for future work
D)   a computer technician has installed the latest software updates, but you have not received an invoice or made payment

Exam 3: Adjustments: Accruals and Deferrals

Which of the following is considered to be an accrued expense?

Correct Answer
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The following adjusting journal entry does not include an explanation. Select the best explanation for the entry.

Correct Answer
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If the effect of the credit portion of an adjusting entry is to increase the balance of a revenue account, which of the following describes the effect of the debit portion of the entry?

Correct Answer
verified

If the debit portion of an adjusting entry is to an asset account, then the credit portion must be to a liability account.

Correct Answer
verified

Unearned revenue is a liability.

Correct Answer
verified

Exam 3: Adjustments: Accruals and Deferrals

Which of the following is considered to be an accrued expense?

Correct AnswerverifiedShow Answer

The following adjusting journal entry does not include an explanation. Select the best explanation for the entry.

Correct AnswerverifiedShow Answer

If the effect of the credit portion of an adjusting entry is to increase the balance of a revenue account, which of the following describes the effect of the debit portion of the entry?

Correct AnswerverifiedShow Answer

If the debit portion of an adjusting entry is to an asset account, then the credit portion must be to a liability account.

Correct AnswerverifiedShow Answer

Unearned revenue is a liability.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified