quizes + exams - Copy.doc - QUIZ CHAPTER 3 QUESTION1 Questiontext Selectone

quizes + exams - Copy.doc - QUIZ CHAPTER 3 QUESTION1...

This preview shows page 1 - 3 out of 19 pages.

QUIZ CHAPTER 3 QUESTION  1 Question text Which of the following is an example of an adjusting entry? Select one: Recording depreciation expense on a truck  Recording the payment of wages to employees Recording the billing of customers for services rendered Recording the purchase of supplies on account Feedback The correct answer is: Recording depreciation expense on a truck QUESTION  2 Question text An adjusting entry to record utilities used during a month for which no bill has yet been received is an example of Select one: Allocating revenues received in advance to revenue to reflect actual revenues earned during the accounting period Accuring revenues to reflect revenues earned during the accounting period that are not yet received or recorded Accruing expenses to reflect expenses incurred during the accounting period that are not yet paid or recorded  Allocating assets to expense to reflect the actual operating expenses incurred during the accounting period Feedback The correct answer is: Accruing expenses to reflect expenses incurred during the accounting period that are not yet  paid or recorded QUESTION  3 Question text Which of the following is not an example of a closing entry? Select one: Close each revenue account to the Retained Earnings account Close each Dividends account to the Retained Earnings account Close each expense account to the Retained Earnings account Close Unearned Revenue to Retained Earnings  Feedback The correct answer is: Close Unearned Revenue to Retained Earnings QUESTION  4 Question text
Image of page 1
Susan Lane  received $5,000 from a tenant on December 1 for five months’ rent of an office. This rent was for  December, January, February, March, and April.  If Susan debited Cash and credited Unearned Rental Income for $5,000 on December 1, what necessary  adjustment would be made on December 31? Select one: A. Unearned Rental Income 4,000 Rental Income 4,000   B. Rental Income 1,000 Unearned Rental Income 1,000   C. Rental Income 4,000 Unearned Rental Income 4,000   D. Unearned Rental Income 1,000 Rental Income 1,000   Feedback Rationale: Transfer 1/5 x $5,000 = $1,000 from Unearned Rental Income to Rental Income LO:  LO: 3 Level:  Level of Difficulty: EASY Topic:  Unearned Income Adjusting Entries The correct answer is: Unearned Rental Income 1,000 Rental Income 1,000 QUESTION  5 Question text On December 31, the end of the accounting period, $10,600 in service fees had been earned but not billed or  received. The Watson Company uses the account Fees Receivable to reflect amounts due but not yet billed.  The proper adjusting entry would be: Select one: A.
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 19 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes