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5. Adjustment for prepaid expense requires a/an
a. Decrease in assets and increase in expense
b. Increase assets and increase revenues
C. Decrease revenues and decrease assets
d. Increase in assets and decrease in expense
6. Adjustment for accrued revenue requires a/an
a. Decrease assets and decrease revenues
b. Increase assets and increase revenues
C. Decrease liabilities and increase revenues
d. Increase in liabilities and decrease revenues
7. A trial balance prepared at the end of the year before financial statements is called
a. Adjusted trial balance
c. Year-end trial balance
b. Closing trial balance
d. Post-adjusting trail balance
8. Entries prepared at the end of every accounting period to clear the books of temporary accounts.
a. Adjusting entries
c. Reversing entries
b. Closing entries
d. Post-closing entries
9. A tool used to summarize all information needed to make adjusting entries and facilitate the preparation of the financial statements as well as the closing entries is called a/an
a. T-account
c. Unadjusted trial balance
b. Post-closing trial balance
d. Worksheet
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