1. During the month of December, a company provided services of $600 to a customer. However, the customer will not pay for the services until the following month. What is the adjusting entry on December 31 to accrue for revenues?

Dr. Revenues 600; Cr. Cash 600

Dr. Cash 600; Cr. Revenues 600

Dr. Revenues 600; Cr. Accounts Receivable 600

Dr. Accounts Receivable 600; Cr. Revenues 600

2. Which of the following options is not a characteristic of adjusting entries?

Involves the accrual of a revenue or expense

Includes one balance sheet and one income statement account

Always includes cash

Made at the end of the period

3.

True or False? Dividends are added to Retained Earnings to calculate the ending balance in Retained Earnings.

True

False