Lesson 3 Quiz.docx - Lesson 3 Quiz 1 Adjusting entries...

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Lesson 3 Quiz 1. Adjusting entries always involve a(n)________.
2. A business pays weekly salaries on Friday of 25000 for a five-day week ending on Friday. Assuming the fiscal period ends on a Thursday, the adjusting entry for accrued salaries would involve a __________
3. The adjusting entry recording depreciation is omitted at year end. This omission affects the balance sheet by __________
4. If a required unearned revenue adjustment had not been made, the financial statements would have been affected as follows ________
5. An accountant recognizes the impact of a business expense when it is incurred under which basis of accounting?
6. The balance in supplies inventory on January 1 st is 5000. Supplies of 2000 were purchased during the year and charged to the inventory account. A physical count shows that there is 4000 of supplies inventory on hand for December 31 st . the entry to adjust supplies would include a _______.
7. When a prepaid expense is initially recorded as an expense, the adjusting entry has the following effect on net income ________.
8. The balance in unearned revenue after adjustment represents _________.
9. When an unearned revenue is initially recorded as a revenue, the adjusting entry has the following effect on the financial statements ___________

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