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ADJUSTING ENTRIES

Total questions: 15

Worksheet time: 10mins

Name
Class
Date
1.

Which of the following is NOT a type of adjusting entry?

a)

Prepaid expenses

b)

Accrued expenses

c)

Unearned revenue

d)

Unearned expenses

2.

From which accounting document is the trial balance prepared?

a)

Journals

b)

Ledgers

c)

Source documents

d)

Vouchers

3.

The following steps in the accounting process are theoretically done throughout the year, EXCEPT:

a)

Preparation of closing entries

b)

Preparation of financial statements

c)

Preparation of journal entries

d)

Preparation of adjusting entries

4.

Which of the following is TRUE about the allowance for doubtful accounts?

a)

It is always equal to bad debts expense

b)

It is never equal to bad debts expense

c)

It will always be less than accounts receivable

d)

It will never be less than the accounts receivable

5.

Which of the following do NOT have a negative effect on the owner's capital?

a)

Depreciation expense

b)

Adjusting entry for unearned revenue

c)

Owner's drawings

d)

Payment of liabilities

6.

On December 1, 2018, Mr. Hindu paid Php18,000 to the cashier of Goma Company as a payment for rent during months of December 2018 and January 2019. How much is the rent expense of Mr. Hindu on December 31, 2018?

(a)  

7.

The advertising fee to be paid on May 31, 2020 is Php40,000, covering period from May 31, 2020 to March 30, 2021. How much is the prepaid advertising fee on December 31, 2020?

(a)  

8.

Which of the following is NOT a method of estimating doubtful accounts?

a)

Double-declining method

b)

Percentage of Accounts Receivable

c)

Percentage of Sales

d)

Aging of Accounts Receivable

9.

California Skin Tone bought a salon equipment for Php75,000 on January 15, 2018. The estimated economic life of the equipment is 5 years. The scrap value is determined to be 10% of acquisition cost. How much is the accumulated depreciation on December 31, 2018?

(a)  

10.

On July 1, 2019, Mikki Tutorials received Php15,000 representing advance payment for services to be rendered in November 2019. Liability method was used. As of the year-end, only 70% of the expected service was rendered. How much is the service revenue to be recognized?

(a)  

11.

On May 1, 2020, Lappy Services received a Php450,000, 9% note for selling an equipment not being used by the business anymore. The note is payable in 2 years. How much is the accrued interest income?

a)

Php2,700

b)

Php27,000

c)

Php40,500

d)

None

12.

These are revenues which are already incurred but not yet collected.

(a)  

13.

This is the process of transferring amounts from journals to ledgers.

a)

Classifying

b)

Posting

c)

Summarizing

d)

Recording

14.

This refers to the process of entering information in the journals which occurs immediately after the analysis phase of the accounting cycle.

a)

Adjusting

b)

Closing

c)

Journalizing

d)

Classifying

15.

Bad debts is always associated with receivables from sales or service revenue.

a)

True

b)

False