Adjustments

Reporting income when it is earned and expenses when they are incurred.

• accrual basis of accounting
• adjusting Entries
• cash basis accounting
• trial balance

The difference between total revenue and total expenses when total revenue is greater.

• adjustments
• income statement
• net income
• trial balance

Reporting income when the cash is received and expenses when the cash is paid.

• accrual basis of accounting
• cash basis of accounting
• balance sheet
• income statement

Journal entries recorded to update general ledger accounting at the end of a fiscal period.

• adjusting entries
• adjustiments
• accrual basis of accounting
• cash basis of accounting

Cash paid for  an expense in one fiscal period that is not used until a later period.

• assets
• liababilities
• prepaid expenses
• revenue

A contra-asset is:

• in reality a liability
• an asset with a debit balance
• an account with an opposite balance of a normal asset
• an account that increases the asset

An adjustment for Prepaid Rent would indicate:

• the amount originally paid
• the amount expired
• the amount on hand
• the amount of the trial balance

The adjustment to record supplies used during the period would be:

• debit Supplies; credit Supplies Expense
• debit Supplies Expense; credit Cash
• debit Supplies Expense; credit Supplies
• debit Supplies; credit Cash

Which of the following accounts would not need to be adjusted at the end of the year?

• office supplies
• prepaid rent
• accumulated depreciation
• cash

Which account would appear on the income statement?

• accumulated depreciation
• rent expense
• equipment
• cash