I) A company bills customers for services rendered on account. Which of the following is part of recording this transaction?

a) Decrese service revenue

b) Decrease cash ; c) Increase account receivable ; d) Increase Unearned revenue

II) Adjusting entries always impact the income statement and the cash account

True or False?

III) Denise's Donuts has 12 Employees who are paid $15 per houir. At December 31, 2016, each of Denise's Donuts's employees had worked 20 hours which had not been paid or recorded. prior to adjustments, the company's trial balance showed $171400 in the wages expenses account. If Denise's Donuts makes the appropriate adjusting entry, how much will be reported on the December 31,2016 income statement as wage expense?

a) $167,800

b) $ 175,000

c) $3,600

d)$173,992

IV) A company provides services to clients during the period that are neither paid for, nor billed ( Invoiced) to the clients. What must the company do?

a) Collect the cash owed from the customer in order to recognize the revenue

b) record the revenues as a liability at the end of the year

c) Accrue revenue by making an adjusting entry at the end of the period

d) All provided answers are true

V) when adjusting for depreciation, which of the following is one effect of the adjustment

a) Accumulated depreciation is decreased

b) The asset's book value declines

c) The cost of the equipment declines

d) The market value of the equipment declines