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ADJUSTING THE ACCOUNTS

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Adjustments needed to _________, EXCEPT:

a)

to make sure an accurate amount being reported in financial statement

b)

to correct the error made by the business

c)

to ensure that the amount of expenses is match with the amount of revenue

d)

to manipulate the accounting report

2.

All of the following were the accounting concept and principles related with an adjustment EXCEPT:

a)

periodicity

b)

revenue recognition

c)

separate entity

d)

matching

3.

"revenue should be recognized when it is earned regardless whether it being received or not" this is accordance with the principle of _______

a)

money measurement

b)

accrual

c)

revenue recognition

d)

time period

4.

The business should less the amount of prepaid salary to ensure that the amount of salary recorded in financial statement is accurate with the amount of revenue earned for that accounting period. This is in line with the principles of________

a)

time period

b)

matching

c)

accrual

d)

revenue recognition

5.

Rental not yet paid is recorded as__________

a)

accrued revenue

b)

accrued expense

c)

unearned revenue

d)

prepaid expenses

6.

Rental received for the next month was classified as_______

a)

current asset

b)

current liability

c)

expense

d)

revenue

7.

Consultation services provided on credit to customer. What is the journal entries used to record this transaction?

a)

DR Consultation services

CR Accrued Consultation services

b)

DR Account Receivable

CR Consultation services

c)

DR Consultation services

CR Account Receivable

d)

DR Unearned Consultation services

CR Bank

8.

The loss of using non current asset is refer to_________

a)

accrued expense

b)

bad debt

c)

depreciation

d)

prepaid revenue

9.

Customer bankrupt and unable to clear the debt. The business will write off this amount as_____________

a)

Depreciation

b)

supplies used

c)

unearned revenue

d)

bad debt

10.

The amount of supplies at the end of the year was RM10,000. Total supplies for the year was RM43,000. How much the amount of supplies being used for the year?

a)

RM33,000

b)

RM53,000

c)

RM43,000

d)

RM10,000