MULI LILE CHOICE OOS), choose the une alternative that best completes the Record your answers on the separate answer sheet using CAPITAL leter. 1) An expense that has been incurred tbuut not yet paid in called ao) A) accrued revenue ) unearned revenue prepaid expense D) acrued expn 2) Robert Rogers, CPA performed acounting services for a dlient in December A bill was mailed to the dintn ecember 30 Roberts rveived a check by mail on January 5, As per the revenue recognition principle, t that should appear on the balance sheet as of December 31 is A) Accounts Receivable the related account D) Prepaid Expense B) Unearned RevenueAccounts Payable. 3) Hank's Tax Planning Service started business in lanuary, 2017. He rented an office for $1,900a month starting January is the balance in 1. On January L, he prepaid the rentals through june 30, le makes accrual adjystments monthly What is the the lPrepaid Rent account as of April 30 A) $300 D) 9900 C) 53,600 B) $1,800 lting Company failed to make an adjusting entry to record $6,000 for unearned service . Which of 4) The accountant of Isabella Consul revenues that were earned before the end of the fiscal year. Assume the company initially recorded a liability the following statements is true? A) The total assets will be overstated. C) The total liabilities will be understated. B) The total assets will be understated D) The total liabilities will be overstated tural Services failed to make an adjusting entry to record $7,000 of depreciation expense. Which of the following statements is true? A) The equity will be understated. C) The total liabilities will be overstated B) The total assets will be overstated D) The total assets will be understated. 6) Which of the following accounts will be included in a post-closing trial balance? A) Rent Expense B) Unearned Service Revenue D) Interest Expense C) Service Revenue 7) Closing journal entries are posted A) before posting the adjusting entries C) after preparing the financial statements. B) throughout the accounting period. D) after preparing the post-closing trial balance 8) Which of the following entries will be necessary to close the Insurance Expense account at the end of the year? A) Debit Income Summary and credit Insurance Expense B) Debit Insurance Expense and credit Income Summary C) Debit Insurance Expense and credit Owner's Name, Capital D) Debit Owner's Name, Capital and credit Insurance Expense 9) The process by which companies produce their financial statements for a specific period is called the A)opening process. C)accounting cycle. D) operating cycle. B) closing process. the amount of the owners withdrawals? 10) What is the result if the amount of net income for the year is less than A) The balance in cash decreases. C) The balance in cash increases. B) Owner's Name, Capital decreases D) Owner's Name, Capital increases 11) What does "2/10 mean, with respect to "credit terms of 2/10, n/307 A) Interest of 10% will be charged if the invoice is paid after 2 days. B) Interest of 2% will be charged if the invoice is paid after 10 days from the C) A discount of 10% date of the invoice. will be allowed if the invoice is paid within 2 days from the date of the invoice. invoice. D) A discount of 2% will be allowed if the invoice is paid within 10 days from the date of the ormation from Up-to-Date Merchandisers for the month of July, 2018 to answer question 12 Sales revenue Cost of goods sold 300,000 85,00 discounts forfeited Administrative expenses 15,00 Interest revenue 12) The amount of gross profit for July, 2018 is A) S90.000 B) $160,000 D) $125,000 C) $140,000 13) Sales revenue of a merchandiser amounted to $20,000, sales discounts forfeited amounted to $2,500, and interest expense was $700. The merchandiser uses a perpetual inventory system. The first entry in the closing process would include: A) a credit to Income Summary for $22,500. B) a debit to Income Summary for $2,500 C) a debit to Income Summary for $19,300. D)a credit to Income Summary for $17,500. 14) A company that uses a perpetual inventory system purchased inventory on account. Goods worth $200 were defective and returned to the vendor. The journal entry to record these returns on the books of the buyer would be A) Estimated Returns Inventory B) Accounts Payable Merchandise Inventory mated Returns Inventory Accounts payable D) Merchandise Inventory20 Accounts Payable