Ch. 9 Multi. Choice
Unearned revenue occurs when:
Customers pay in advance of receiving a service
To record adjusting entries, use:
Accountant Menu > Make General Journal Entries
To record adjusting journal entries in QuickBooks, select:
Accountant Menu > Make General Journal Entries
Types of adjusting entries include all of the following except:
Accrued Cash
Prepaid items for which adjusting entries may be necessary include all of the following except:
Accrued Interest
An accounting period may be:
All of the choices are correct
Adjusting entries should be made:
Before preparing an Adjusted Trial Balance
Adjusting entries are used to:
Bring account balances up to date at year end
If a count of office supplies on hand reveal $100 of supplies unused at year-end and the Office Supplies on Hand account has a balance of $350, the adjusting entry to bring the Office Supplies on Hand up to date at year-end should include:
Debit Office Supplies Expense $250, Credit Office Supplies on Hand $250
Adjusting entries for prepaid items typically include which of the following related types of accounts:
Expense and Asset accounts
Adjusting entries for accrued expenses typically include which of the following related types of accounts:
Expense and Liability accounts
The Trial Balance:
Is prepared before making adjustments
Before making adjusting entries, you should:
Prepare a Trial Balance
To print an Adjusted Trial Balance, select:
Reports Center > Accountant & Taxes
Adjusting entries for accrued revenues typically include which of the following related types of accounts:
Revenue and Asset accounts
Adjusting entries for unearned items typically include which of the following related types of accounts:
Revenue and Liability accounts
Sales are recorded under cash basis accounting when:
The cash is collected from the customers
The order of the steps in the accounting cycle includes:
Trial Balance, adjusting entries, Adjusted Trial Balance, financial reports
What is an asset?
What a company owns
