djusting Entries Section 2-ACCRUED REVENUE 1. Accrued revenue is: a. payment received for work completed b. revenue earned but not received a debit to cash d. . a credit to cash 2. The journal entry to accrue $500 commissions' revenue is: Cash Commissions Revenue Commissions Revenue Cash Commissions Revenue a. 500 500 b. 500 500 . 500 Accounts Receivable Accounts Receivable Commissions Revenue 500 d. 500 500 3. Several years ago, your calendar year company issued a $15,000 note at 8% a interest due each July 31. If no interest is received this year, what journal entry do you record at year end? ear . Interest Receivable 500 Deferred Revenue Interest Receivable Deferred Revenue Interest Receivable Interest Revenue Interest Receivable Interest Revenue 500 b. 1,200 1,200 . 1,200 1,200 d. 500 500 As of year end, your firm was owed $4,000 for work completed, but had received only $1,500, that you credited to Revenue. By what amount must the balance in Revenue be adjusted at year end? 4. $4,000 b. a. $1,500 $2,500 $0 . d. 5. Your company performs work for a customer, but as of year end, has received no payment. If you do not record an adjusting entry at year end, how will the financial statements be affected? Net income overstated Assets not affected overstated not affected Liabilities understated not affected overstated not affected a. b. overstated understated . d. understated understated