ACCTG 1 - CHAP 3, 4 PRACTICE TEST - The following is a practice test for Accounting 1, Chapters 3 and 4. It is only a representation of wha the test could be like. It is not a guarantee in any way that ONLY these types of questions will be asked, on the number of questions, nor on the breakdown between multiple choice and problems. 1 Which of the following is a type of adjusting joumal entry? A) Prepaid (Deferred) expenses. B) Unearned (Deferred) revenues. C) Accrued revenues. D) Accrued expenses. E) All of the above 2 At the beginning of the year, a business had a two-year, $2,400 insurance policy on its office equipment. On July 1, it purchased a three-year, $3,600 policy on a newly constructed building. Which of the following will be the December 31, year-end, adjusting entry? A) Insurance Expense, debit, $6,000; Prepaid Insurance, credit, $6,000 B) Insurance Expense, debit, \$2,400; Prepaid Insurance, credit, $2,400 C) Insurance Expense, debit, $2,100; Prepaid Insurance, credit, $2,100 D) Insurance Expense, debit, $1,800; Prepaid Insurance, credit, $1,800 E) None of the journal entries in this group 3 At the end of the accounting period, the business had $4,500 of office supplies on hand. At the beginning of the period, the amount of supplies on hand was $3,000. If the business purchased $12,000 of office supplies during the year, what amount of office supplies were used during year? A) $16,500 A) $16,500 B) $14,250 C) $10,500 D) $9,750 E) None of the above 4 At the end of the fiscal year, an adjusting entry was made for accrued salaries of $1,500. The salaries for one week, $3,750, were paid on the first Friday of the new fiscal period. Which of the following is the entry to record paying the salaries expense for the week? A) Salaries Expense, debit, $3,750; Cash, credit, $3,750 B) Salary Exp., debit, $1,500; Salaries Payable, debit, $2,250; Cash, credit, $3,750 C) Salaries Expense, debit, \$3,750; Salaries Payable, credit, $3,750 D) Salary Exp., debit, \$2,250; Salaries Payable, debit, $1,500; Cash, credit, $3,750 E) None of the journal entries shown above