WorksheetsACC 106 - Chapter 3 (Adjusting)
Total questions: 10
Worksheet time: 50mins
What account is used to adjust the value of a long term asset?
Depreciation Expense
Unearned Revenue
Depreciation Revenue
Supplies Expense
Which of the following is the correct journal entry for adjusting depreciation on a Vehicle?
Debit Depreciation Expense, Credit Accumulated Depreciation
Debit Accumulated Depreciation, Credit Depreciation Expense
Debit Depreciation Expense, Credit Vehicle
Debit Vehicle, Credit Depreciation Expense
When do you record Supplies Expense?
When you use up supplies
When you purchase supplies
When you sell supplies
When supplies depreciate
When do you record Revenue in Accrual Based Accounting?
When you earn revenue by providing a service or selling a good.
When you are paid by a customer.
When a customer asks for a quote
At the end of the accounting cycle
How do you journalize the adjusting entry for unearned revenue?
Debit Unearned Revenue, Credit Revenue
Debit Revenue, Credit Unearned Revenue
Debit Cash, Credit Unearned Revenue
Debit Cash, Credit Revenue
If at the beginning of the month you purchase $300 of supplies, and at the end of the month the supplies on hand were $200, what is the adjusting entry needed at the end of the month?
Debit Supplies Expense $100, Credit Supplies $100
Debit Supplies Expense $200, Credit Supplies $200
Debit Supplies Expense $300, Credit Cash $300
Debit Supplies $300, Credit Cash $300
If you pay salaries on Mondays but January 31 lands on Thursday, what is the adjusting entry needed at month end?
Debit Salary Expense, Credit Salary Payable
Debit Salary Expense, Credit Cash
No transaction is needed until Monday
Debit Salary Expense, Credit Accounts Payable
If last month you paid $1000 for a 5 month insurance policy, how would you journalize the adjustment needed after 3 months?
Debit $600 Insurance Expense, Credit $600 Prepaid Insurance
Debit $600 Insurance Expense, Credit $600 Prepaid Insurance Expense
Debit $1000 Insurance Expense, Credit $1000 Prepaid Insurance
Debit $200 Insurance Expense, Credit $200 Prepaid Insurance Expense
When do we complete adjusting entries?
When we are going to prepare financial statements
When asked by a manager
When being audited
At the end of every month
What is the most important information for making all adjustment entries?
The time period you are adjusting for (ie quarterly, annually, monthly, etc.)
The beginning balance for each account from the un-adjusted Trial Balance
The amount of depreciation for your equipment
The good or service your company provides
