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College Accounting

John Price, University of North Texas
M. David Haddock, Chattanooga State Technical Comm. College
Horace Brock, University of North Texas
Connie Hahn, Southern Alberta Institute of Technology
Traven Reed, Canadore College

Adjusting Entries and Completing the Worksheet

Multiple Choice Questions


1	What is the basis of accounting by which all revenues and expenses are matched and reported on statements for the applicable period, regardless of when the cash related to the transaction is received or paid?
		A)	Cash basis
		B)	Accrual basis
		C)	Modified accrual basis
		D)	Prepaid and deferred basis


2	Expenses that are paid for and recorded in advance of their use are called
		A)	Used expenses
		B)	Deferred expenses
		C)	Unearned expenses
		D)	Expired expenses


3	When recording the journal entry to account for the supplies used during the accounting period ,which account is credited?
		A)	Supplies Expense
		B)	Prepaid supplies
		C)	Supplies
		D)	Accounts Receivable


4	When making an adjustment to account for insurance usage during an accounting period, which is true?
		A)	Debit prepaid insurance, credit insurance expense
		B)	Credit prepaid insurance, debit accounts payable
		C)	Credit prepaid insurance, debit insurance expense
		D)	Debit insurance expense, credit cash


5	Which asset would we not amortize?
		A)	Land
		B)	Equipment
		C)	Building
		D)	Truck


6	What is the journal entry to account for accrued salaries?
		A)	Debit wages payable, credit wage expense
		B)	Debit wage expense, credit cash
		C)	Debit wage expense, credit accounts payable
		D)	Debit wage expense, credit wages payable


7	A company signed a 60 day, 8 percent note for $ 10000 on December 15 20X4. What is the interest expense as of December 31, 20X4?
		A)	$ 35.07
		B)	$ 39.45
		C)	$ 66.67
		D)	$ 34.98


8	A company has four employees that earn $ 180.00 per day. The employees are paid weekly, on Friday. December 31 falls on a Wednesday. What is the adjustment to be made?
		A)	$ 1620.00
		B)	$ 0.00
		C)	$ 1080.00
		D)	$ 540.00


9	Unearned revenue is what type of account?
		A)	Asset
		B)	Owner's Equity
		C)	Revenue
		D)	Liability


10	What is the journal entry to adjust for unearned revenue?
		A)	Debit unearned revenue, credit earned revenue
		B)	Debit unearned revenue, credit cash
		C)	Credit unearned revenue, debit cash
		D)	Credit unearned revenue, debit earned revenue

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