12.

LO 4.2Salaries owed but not yet paid is an example of which of the following?

1. accrued expense
2. accrued revenue
3. deferred expense (prepaid expense)
4. deferred revenue (unearned revenue)

13.

LO 4.2Revenue earned but not yet collected is an example of which of the following?

1. accrued expense
2. accrued revenue
3. deferred expense (prepaid expense)
4. deferred revenue (unearned revenue)

14.

LO 4.3What adjusting journal entry is needed to record depreciation expense for the period?

1. a debit to Depreciation Expense; a credit to Cash
2. a debit to Accumulated Depreciation; a credit to Depreciation Expense
3. a debit to Depreciation Expense; a credit to Accumulated Depreciation
4. a debit to Accumulated Depreciation; a credit to Cash

15.

LO 4.3Which of these transactions requires an adjusting entry (debit) to Unearned Revenue?

1. revenue earned but not yet collected
2. revenue collected but not yet earned
3. revenue earned before being collected, when it is later collected
4. revenue collected before being earned, when it is later earned

16.

LO 4.4What critical purpose does the adjusted trial balance serve?

1. It proves that transactions have been posted correctly
2. It is the source document from which to prepare the financial statements
3. It shows the beginning balances of every account, to be used to start the new years records
4. It proves that all journal entries have been made correctly.

17.

LO 4.4Which of the following accounts balance would be a different number on the Balance Sheet than it is on the adjusted trial balance?

1. accumulated depreciation
2. unearned service revenue
3. retained earnings
4. dividends

18.

LO 4.5On which financial statement would the Supplies account appear?

1. Balance Sheet
2. Income Statement
3. Retained Earnings Statement
4. Statement of Cash Flows

19.

LO 4.5On which financial statement would the Dividends account appear?

1. Balance Sheet
2. Income Statement
3. Retained Earnings Statement
4. Statement of Cash Flows

20.

LO 4.5On which financial statement would the Accumulated Depreciation account appear?

1. Balance Sheet
2. Income Statement
3. Retained Earnings Statement
4. Statement of Cash Flows

21.

LO 4.5On which two financial statements would the Retained Earnings account appear?

1. Balance Sheet
2. Income Statement
3. Retained Earnings Statement
4. Statement of Cash Flows