1.

Adjusting entries are prepared after the financial statements are

finalized?
TrueWrong
FalseRight!
2. Unearned revenue adjustments are needed when cash is received
before revenue is earned?
TrueRight!
FalseWrong

3. Accrued expenses are expenses which have been paid before

they occur?
FalseRight!
True
4. Adjusting entries for inventory are used in a perpetual inventory
system to determine the cost of goods?
TrueWrong
FalseRight!
5. Accrued revenues represent revenues received after they are
earned?
FalseWrong
TrueRight!
6. Adjusting entries for accrued expenses include a debit to an
expense account?
TrueRight!
FalseWrong
7. Prepaid or deferred expenses represent expenses which have
been paid in advance before they occur and need to be allocated to
a later accounting period?
FalseWrong
TrueRight!
8. Adjusting entries are used when the exact value of an expense
cannot be determined?
TrueRight!
FalseWrong
9. Depreciation journals are adjusting entries?
TrueRight!
FalseWrong
10. An accrual for estimated income tax is not an adjusting entry?
FalseRight!
TrueWrong

1. Adjusting entries always affect which type of accounts?

Balance sheet accounts onlyWrong
Both balance sheet and income statement accountsRight!
2.The journal to record an accrued expense includes a credit to
which account?
Balance sheet liability accountRight!
Expense accountWrong
3. If an adjusting entry is not made to accrue expenses, then the
balance sheet liabilities will be?
UnderstatedRight!
OverstatedWrong

4. When are adjusting entries usually carried out?

At the start of the accounting periodWrong
At the end of the accounting periodRight!
5. An adjusting entry to accrue revenue earned but not received at
the end of an accounting period includes which type of entry to a
balance sheet asset account?
CreditWrong
DebitRight!
6. The depreciation adjusting entry to record the depreciation
expense estimate for the accounting period requires a credit to
which account?
Accumulated depreciationRight!
Depreciation expenseWrong
7. Adjusting entries are needed to comply with which accounting
concept?
Dual aspectWrong
MatchingRight!
8. Expenses paid in advance require what type of adjusting entry?
Deferral (prepaid)Right!
AccrualWrong
9. Adjusting entries never involve which account?
CashRight!
ExpensesWrong
10. What is the normal balance on a deferred revenue account ?
CreditRight!
DebitWrong