1. )

The Prepaid Insurance account has a balance of $200 less in the work sheet's Balance Sheet Debit column than in the work sheet's Trial Balance Debit column. This would be the result of a

Select one:

a. $200 entry to Prepaid Insurance in the work sheet's Adjustments Credit column.

b. $200 entry to Prepaid Insurance in the work sheet's Adjustments Debit column.

c. $200 entry to Insurance Expense in the work sheet's Adjustments Credit column.

d. $400 entry to Insurance Expense in the work sheet's Adjustments Credit column.

e. $400 entry to Prepaid Insurance in the work sheet's Adjustments Credit column.

2.)

Rent received in advance by a landlord is called unearned revenue if the rental income will be earned in more than one fiscal period.

Select one:

True

False

3.)

The first adjusting entry for merchandise inventory causes a zero balance in the Merchandise Inventory account when using the periodic inventory system.

Select one:

True

False

4.)

The adjusting entry for expired or used insurance will increase the Insurance Expense account.

Select one:

True

False

5.)

The adjusting entry for unearned revenue involves a debit to Accounts Payable.

Select one:

True

False

6.)

Under a periodic inventory system, entries are recorded in the Merchandise Inventory account at the end of the fiscal period only.

Select one:

True

False