Ch. 3 Adjusting Entries Part 2

The 12 month period that ends when a company's sales activities are at their lowest level is called:

• Fiscal year
• Calendar year
• Natural year
• Accounting year

An expense that the business has incurred but not yet paid is:

• Prepaid expense
• Accrued expense
• Deferred expense
• Accrued revenue

An expense that the business has paid, but not yet incurred

• Prepaid Expense
• Accrued Expense
• Deferred expense
• Accrued revenue

A revenue that the business has earned but not collected

• Unearned revenue
• Accrued Expense
• Accrued revenue
• Deferred revenue

A revenue that the business has collected but not yet earned

• Unearned revenue
• Accrued Expense
• Accrued revenue
• Deferred revenue

Which of the following is NOT depreciated?

• Buildings
• Equipment
• Trucks/Vehicles
• Land

An adjusting entry could be made for each of the following EXCEPT:

• Owner's Investments
• Depreciation
• Prepaid expenses
• Unearned revenues

What type of account is Accumulated Depreciation and what is its normal balance?

• Asset, Debit
• Revenue, credit
• Contra asset, credit
• Liability, credit

The total amount of depreciation recorded against an asset over the entire time the asset has been owned is:

• Book Value
• Depreciation Expense
• Accumulated depreciation
• Contra value

Financial statements can be prepared from which of the following?

• Unadjusted trial balance
• General journal
• General ledger
• Adjusted trial balance