Lesson 6-2 Review

Cash paid for an expense in one fiscal period but the purchased expense isn't used until a later period. (example: you purchased supplies this period, but didn't actually use the supplies until next period)

• Prepaid Expense

• Future Expense

• Accounting Expense

• Adjusted Expense

Companies practice _________________ when they report income when it is earned and expenses when they are purchased. It is required by the GAAP

• Accrual Basis of Accounting

• Cash Basis of Accounting

Companies practice _____________ when they report income as cash is actually received and expenses are actually paid for

• Cash Basis of Accounting

• Accrual Basis of Accounting

The first column that we completed in lesson 6-1 on the work sheet was called the...

• Trial Balance Column

• Adjustment Column

• General Ledger

• General Journal

In Lesson 6-2 we recorded changes to the work sheet to update accounts at the end of the period based on what we actually used. This was recorded in the ___________ column.

• Trial Balance

• Adjustments

• Debits/Credits

• General Journal

On Feb. 28th supplies were listed as $500. When you counted the supplies on hand you actually only had $50 worth of supplies. How much did the company use in February?

• $450 worth of supplies

• $500 worth of supplies

• $50 worth of supplies

• $550 worth of supplies

What is the account name used to record the supplies your company used that period?

• Supplies Expense

• Supplies Used

• Supplies Remaining

• Supplies Cost

On March 31st the balance of insurance was $1,000. Your company records show that the remaining value of your company's insurance premium was $800. How much was the company's insurance expense this period?

• $1,000

• $800

• $200

• $1,800

When recording the insurance used/paid off that period you use the ____________ account.

• Insurance Expense

• Insurance Used

• Insurance Cost

• Insurance

To prove your adjustments are accurate the debits should ________ the credits

• equal

• be larger than

• be smaller than