1. If an adjusting entry includes an increase to an asset contra-account, what else would be increased?

		a) A related asset account
		b) A revenue account
		c) An expense account
		d) A revenue account

2. A company purchased a certificate of deposit on June 1 that will pay $120 interest three months from that date. On June 31, which of the following adjusting entries would be made?

		a) Debit Interest Receivable for $120; credit Interest Revenue for $120
		b) Debit Interest Revenue for $40; credit INterest Receivable for $40
		c) Debit Interest Receivable for $40; credit Interest Revenue for $40
		d) Debit Interest Revenue for $120; credit Interest Receivable for $120