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1)

Accrued expenses are considered as

A)  AssetWRONG ANSWER

B)  LiabilityRIGHT ANSWER!!!

C)  GainWRONG ANSWER

D)  IncomeWRONG ANSWER


2)

Prepaid expenses are regarded as

A)  AssetRIGHT ANSWER!!!

B)  LiabilityWRONG ANSWER

C)  LossWRONG ANSWER

D)  CapitalWRONG ANSWER


3)

Which of the following adjusting double entries is correct for Unearned income?

A)  DEBIT= Income, CREDIT= Unearned incomeRIGHT ANSWER!!!

B)  DEBIT= Unearned income, CREDIT= IncomeWRONG ANSWER

C)  DEBIT= Cash, CREDIT= Unearned incomeWRONG ANSWER

D)  DEBIT= Income, CREDIT= CashWRONG ANSWER


4)

Earned but not yet received income is treated as

A)  AssetRIGHT ANSWER!!!

B)  LiabilityWRONG ANSWER

C)  LossWRONG ANSWER

D)  CapitalWRONG ANSWER


5)

Which of the following adjusting double entries is correct for accrued expenses?

A)  DEBIT= Expenses, CREDIT= Accrued expensesRIGHT ANSWER!!!

B)  DEBIT= Accrued expenses, CREDIT= ExpensesWRONG ANSWER

C)  DEBIT= Cash, CREDIT= Accrued expensesWRONG ANSWER

D)  DEBIT= Expenses, CREDIT= CashWRONG ANSWER


6)

Which of the following adjusting double entries is correct for Prepaid expenses?

A)  DEBIT= Expenses, CREDIT= Prepaid expensesWRONG ANSWER

B)  DEBIT= Prepaid expenses, CREDIT= ExpensesRIGHT ANSWER!!!

C)  DEBIT= Cash, CREDIT= Prepaid expensesWRONG ANSWER

D)  DEBIT= Expenses, CREDIT= CashWRONG ANSWER


7)

Unearned income is classified as

A)  AssetWRONG ANSWER

B)  LiabilityRIGHT ANSWER!!!

C)  LossWRONG ANSWER

D)  CapitalWRONG ANSWER


8)

Which of the following adjusting double entries is correct for earned income?

A)  DEBIT= Income, CREDIT= Earned incomeWRONG ANSWER

B)  DEBIT= Earned income, CREDIT= IncomeRIGHT ANSWER!!!

C)  DEBIT= Cash, CREDIT= Earned incomeWRONG ANSWER

D)  DEBIT= Income, CREDIT= CashWRONG ANSWER


9)

Failure to make adjusting entries for accrued income results in

A)  Overstatement of expensesWRONG ANSWER

B)  Understatement of expensesWRONG ANSWER

C)  Understatement of capitalRIGHT ANSWER!!!

D)  Overstatement of incomeWRONG ANSWER


10)

Identify the consequences of not making adjustment entry for accrued expense

A)  Overstatement of liabilitiesWRONG ANSWER

B)  Understatement of liabilitiesRIGHT ANSWER!!!

C)  Overstatement of expensesWRONG ANSWER

D)  Understatement of capitalWRONG ANSWER







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