1) Which of the following would cause a liability to be credited and an expense to be debited?

A.

Recording the depreciation of equipment

B.

Recording the accrual of salaries incurred

C.

Recording the adjustment for the expiration of rent

D.

Purchasing equipment

2) All of the following are reasons to adjust the account balances at the end of the period, except:

A.

to accurately report the assets on the balance sheet.

B.

to correct any errors made during the period.

C.

to report all expenses incurred during the period.

D.

to report all revenues earned during the period.

3) On a worksheet, the income statement debit column totals $11,000 and the credit column totals $9,500 following statements is correct?

A.

The company's revenues were greater than expenses.

B.

The company had a net income of $1,500.

C.

The company had a net loss of $1,500.

D.

None of the above is correct.

4) An adjustment for Prepaid Rent Expense would indicate:

A.

the amount of the beginning balance.

B.

the amount originally paid.

C.

the amount expired.

D.

the amount of the ending balance.