Adjusted Trial Balance (1-10)

1. The appropriate journal entry to record equipment depreciation expense would consist of a debit to Depreciation Expense and a credit to which of the following accounts?

(a) Owner equity

(b) Cash

(c) Retained earnings

(d) Accumulated depreciation: Equipment

Correct! Wrong!

2. Payment for a two year insurance policy requires a debit to at the time of adjustments?

(a) Insurance Expenses

(b) Prepaid Insurance

(c) Cash

(d) Creditors

Correct! Wrong!

3. The entry to recognize depreciation expense?

(a) Is closing entry

(b) Is Adjusting entry

(c) Is Cash expense

(d) Non of before

Correct! Wrong!

4. Accrued revenue is also called?

(a) Not earned revenue

(b) Revenue earned and received

(c) Receivable Revenue

(d) None

Correct! Wrong!

5. Adjusting entries are required?

(a) When the firm uses the Cash-basis of accounting

(b) For discrete Transactions

(c) When the firm uses the Accrual-basis of accounting

(d) Both A and B

Correct! Wrong!

6. Depreciation is?

(a) The amount spent to buy a fixed asset

(b) The salvage value of a fixed asset

(c) The amount of money spent in replacing assets

(d) The part of the cost of the fixed asset consumed during its period

Correct! Wrong!

7. The amount reserved for doubtful debts is called?

(a) Bad debts

(b) Doubtful receivables

(c) Provision for bad debts

(d) Reserve for receivables

Correct! Wrong!

8. Unearned revenue of Rs. 2,000 now earned. The entry is?

(a) Cash to revenue

(b) Unearned revenue to revenue

(c) Revenue to Unearned revenue

(d) None of above

Correct! Wrong!

9. Accounting Period can be?

(a) Weekly

(b) Monthly

(c) Yearly

(d) All of before

Correct! Wrong!

10. For purposes of measuring business income, the life of a business is?

(a) Divided into specific points in time

(b) Divided into irregular cycles

(c) Divided into discrete accounting periods

(d) Considered to be a continuous cycle

Correct! Wrong!

1. The appropriate journal entry to record equipment depreciation expense would consist of a debit to Depreciation Expense and a credit to which of the following accounts?

2. Payment for a two year insurance policy requires a debit to at the time of adjustments?

3. The entry to recognize depreciation expense?

4. Accrued revenue is also called?

5. Adjusting entries are required?

6. Depreciation is?

7. The amount reserved for doubtful debts is called?

8. Unearned revenue of Rs. 2,000 now earned. The entry is?

9. Accounting Period can be?

10. For purposes of measuring business income, the life of a business is?

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