Question 21 (1 point)

Saved

Which of the following is an example of an accrued expense?

Question 21 options:

	Depreciation expense
	Office supplies purchased at the beginning of the year and debited to an expense account
	Rent recognized during the period, to be received at the end of the year
	Property taxes incurred during the year, to be paid in the first quarter of the subsequent year

Question 22 (1 point)

Saved

An adjusting entry to record an accrued expense involves a debit to a(an)

Question 22 options:

	expense account and a credit to a prepaid account
	expense account and a credit to Cash
	expense account and a credit to a liability account
	liability account and a credit to an expense account

Question 23 (1 point)

Saved

The failure to properly record an adjusting entry to accrue an expense will result in an

Question 23 options:

	overstatement of expenses and an understatement of assets
	understatement of expenses and an overstatement of assets
	understatement of expenses and an understatement of liabilities
	understatement of expenses and an overstatement of liabilities

Question 24 (1 point)

Saved

Adjustments are often prepared

Question 24 options:

	before the balance sheet date, and dated after the balance sheet date
	after the balance sheet date, and dated after the balance sheet date
	after the balance sheet date, but dated as of the balance sheet date
	before the balance sheet date, and dated before the balance sheet date

Question 25 (1 point)

Saved

How do these prepaid expenses expire?

Question 25 options:

	Supplies with the passage of time, insurance through use and consumption
	Insurance and supplies with the passage of time
	Insurance and supplies through use and consumption
	Insurance with the passage of time, supplies through use and consumption

Question 26 (1 point)

Saved

Recording the adjusting entry for depreciation has the same effect as recording the adjusting entry for

Question 26 options:

	an accrued revenue
	a prepaid expense
	an accrued expense
	an unearned revenue

Question 27 (1 point)

Saved

Which type of account is always debited during the closing process?

Question 27 options:

	Expense
	Retained earnings
	Revenue
	Dividends

Question 28 (1 point)

Saved

Which of the following statements best describes the purpose of closing entries?

Question 28 options:

	To facilitate posting and making a trial balance
	To reduce the balances of revenue and expense accounts to zero so that they may be used to accumulate the revenues and expenses of the next period
	To determine the amount of net income or net loss for the following period
	To complete the record of various transactions that were started in a prior period

Question 29 (1 point)

Saved

Adjusting entries that should be reversed include

Question 29 options:

	most accrued revenues
	most accrued expenses
	most accrued revenues and most accrued expenses
	neither accrued revenues nor accrued expenses

Question 30 (1 point)

Saved

A company receives interest on a $70,000, 8%, 5-year note receivable each April 1. At December 31, 2021, the following adjusting entry was made to accrue interest receivable:

Interest Receivable ............................................................ 4,200

Interest Revenue ................................................... 4,200

Assuming that the company does not use reversing entries, what entry should be made on April 1, 2022 when the annual interest payment is received?

Question 30 options:

	Cash 5,600 Interest Receivable 4,200 Interest Revenue 1,400
	Cash 4,200 Interest Receivable 4,200
	Cash 1,400 Interest Revenue 1,400
	Cash 5,600 Interest Revenue 5,600