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WorksheetsTOPIC 5 QUIZ
Total questions: 12
Worksheet time: 6mins
Expenses incurred but not yet paid or recorded are called
prepaid expenses.
accrued expenses.
interim expenses.
unearned expenses.
Prepaid expenses are
paid and recorded in an asset account before they are used or consumed.
paid and recorded in an asset account after they are used or consumed.
incurred but not yet paid or recorded.
incurred and already paid or recorded.
Unearned revenues are
revenues for services already performed, and recorded as liabilities, before they are received.
revenues for services performed but not yet received in cash or recorded.
Revenues for services already performed and received in cash, and recorded as revenues when received.
revenues not recorded as revenues until services are performed.
Depreciation expense for a period is the
original cost of an asset – accumulated depreciation.
book value of the asset ÷ useful life.
portion of an asset’s cost that expired during the period.
market value of the asset ÷ useful life
Unearned revenue is classified as
an asset account.
a contra-revenue account.
a liability account.
a revenue account.
Entries that are made at the end of a period to correct accounts before financial statements are prepared.
Closing entries
Adjusting entries
Reversing entries
Journal entries
Purpose of adjusting entry ( more than one answer)
Ensure that the revenue recognition and expense recognition principles are complied.
Necessary because the trial balance may not contain up-to-date and complete data.
Acquisition of business through the sale of goods / services
Required every time a company prepares financial statements.
Which one of the following is not characteristic of capital expenditure
Any expenditure incurred to acquire
an asset and make it ready for its
intended use
Improve the efficiency or substantial
working life of the asset
The benefit of which is received over
a period of more than one year.
Decrease the business profit
What type of Unearned Revenues Account?
Asset
Liability
Owner's Equity
Revenues
Typically an adjusting entry will include which of the following?
One Statement of Comprehensive Income & One Statement of Financial Position
Two Statement of Financial Position
Two Statement of Comprehensive Income
Which of the following will be included in the adjusting entry to accrue interest expense?
Debit to Cash
Credit to Interest Payable
Debit to Interest Payable
Debit to Prepaid Interest
What type of accounts are Accumulated Depreciation and Allowance for Doubtful Accounts?
Liability
Owner's Equity
Contra Asset
Asset
