1. Which of the following accounts balance would be a different number on the Balance Sheet than it is on the adjusted trial balance?

a. retained earnings

b. accumulated depreciation

c. unearned service revenue

d. dividends

2. Which of the following is the federal, independent agency that provides oversight of public companies to maintain fair representation of company financial activities for investors to make informed decisions?

a. SEC (Securities and Exchange Commission)

b. IRS (Internal Revenue Service)

c. FASB (Financial Accounting Standards Board)

d. FDIC (Federal Deposit Insurance Corporation)

3. Which type of adjustment occurs when cash is either collected or paid, but the related income or expense is not reportable in the current period?

a. deferral

b. accrual

c. estimate

d. cull

4. Which of these transactions requires an adjusting entry (debit) to Unearned Revenue?

a. revenue collected before being earned, when it is later earned

b. revenue earned but not yet collected

c. revenue collected but not yet earned

d. revenue earned before being collected, when it is later collected

5. What critical purpose does the adjusted trial balance serve?

a. It is the source document from which to prepare the financial statements

b. It proves that transactions have been posted correctly

c. It shows the beginning balances of every account, to be used to start the new years records

d. It proves that all journal entries have been made correctly.