Acct. Test Bank #4 Adjusting Entries

A trial balance lists all accounts and displays their debit or credit balances as of a specific date.

• True

• False

Accounts are listed properly on the trial balance in the order: assets, liabilities, capital withdrawls, revenue and expenses

• True

• False

The balances of accounts included in an unadjusted trial balance come from the general ledger.

• True

• False

A benefit of the trial balance is that it helps to ensure that _____.

• the general ledger is free of errors

• adjusting entries are not required

• debit balances equal credit balances

• the company has earned a net income

Place the account types in the order they are listed within the trial balance.

• Second

• Asset

• Fourth

• Capital/Withdrawl

• Third

• Liabilties

• First

• Expense

• Fifth

• Revenue

A deferred expense is one that is incurred before payment has been made.

• True

• False

An example of accrued revenue is unearned revenue.

• True

• False

An accrued expense requires a debit to an expense account and a credit to a liability account.

• True

• False

What would the adjusting entry to account for the use of supplies consist of?

• Debit to Accumulated depreciation, credit to Supplies

• Debit to Supplies, credit to Supplies Expense

• Debit to Supplies Expense, credit to supplies

• Debit to Supplies, credit to Cash

Employee wages earned, but not yet paid, for a given period are $1,800. What is the adjusting entry?

• Debit Cash

  Credit Wages Expense

• Debit Wages Expense, Credit Cash

• Debit Wages Expense, Credit Wages Payable

• Debit Wages Payable, Credit Cash