1. All of the following are operating expenses except:

a/ expenses incurred for frieght-out.

b/ expenses incurred to pay for advertising.

c/ expenses incurred to pay employees.

d/ expenses incurred to pay interest on bank loans.

2.The purpose of the post-closing trial balance is to

a/ ensure that all adjusting entries were made.

b/ list all the balance sheet accounts in alphabetical order for easy reference.

c/prove the equality of the balance sheet account balances that are carried forward into the next accounting period.

d/ prove the equality of the income statement account balances that are carried forward into the next accounting period.

3.Lauren Hall University borrowed $20,000 from the bank signing a 6%, 3-month note on September 1. Principal and interest are payable to the bank on December 1. If the company prepares monthly financial statements and uses months rather than days to calculate interest, the adjusting entry that the company should make for interest on September 30, would be

a/ debit Cash, $100; credit Interest Payable, $100.

b/ debit Note Payable, $1,200; credit Cash, $1,200.

c/ debit Interest Expense, $100; credit Interest Payable, $100.

d/ debit Interest Expense, $400; credit Interest Payable, $400.

4.Depreciation of a long-lived asset is the process of

a/ increasing the cost of a long-lived asset over the periods the asset benefits.

b/ valuing a long-lived asset at its fair value.

c/ allocating the cost of a long-lived asset to an expense over the periods the asset provides a benefit to the entity.

d/ writing down a long-lived asset to its real value each accounting period.