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WorksheetsAdjusting Entries Quiz
Total questions: 15
Worksheet time: 11mins
The purpose of adjusting entries is to convert cash transactions into the accrual accounting method.
TRUE
FALSE
Revenue that has been earned by providing a good or service, but for which no cash has been received.
Service Revenue
Recurring Revenue
Accrued Revenue
Unearned Revenue
Adjusting Entries are journaling entries usually made at the beginning of an accounting period to allocate income and expenditure to the period in which they occurred.
TRUE
FALSE
The following are the importance of Adjusting Entries, except:
To settle the accrued financial transactions.
To ensure the exact revenues.
To sabotage any error.
To ensure the exact expenses.
It is also known as accrued liabilities.
Accrued Expenses
Accrued Revenues
Prepaid Expenses
Depreciation
Accrued expenses are the opposite of prepaid expenses.
TRUE
FALSE
Money received from a customer for work that has not yet been performed.
Accrued Revenue
Prepaid Expenses
Unearned Revenue
Accrued Expenses
Unearned income or revenue is accounted for using either the liability method or the income method.
TRUE
FALSE
Unearned revenue is also known as
Unearned Income
Deferred Revenue
Deferred Income
All of the above
Prepaid expenses are expenditures which are not paid in one accounting period, and will be recognized until a later accounting period.
TRUE
FALSE
Company A rents a warehouse for $600,000 to be paid for 2 years. The debit on the journal entey is:
$250,000
$25,000
$60,000
$600,000
Accrued expenses are treated as assets on the balance sheet, whereas prepaid expenses are treated as liabilities.
TRUE
FALSE
An asset is something that you own that is valuable and which brings you economic benefit in the future.
TRUE
FALSE
In JOURNAL ENTRIES, the word DEALER stands for?
(a)
This happens when assets lose value over time until the value of the asset becomes zero, or negligible.
Expenses
Revenues
Depreciation
Payment
