Multiple Choice

$1$:Which of the following is a false statement about adjustments?

Adjusting entries include deferrals and accruals.

Companies wait until the end of the accounting period to adjust their accounts.

Adjusting entries are required every time a company wants to prepare financial statements for external users.

Every account could require an adjustment.

$2.$Which is the correct sequence of the following steps in the accounting cycle?

Prepare journal entries, analyze transactions, prepare a trial balance.

Prepare trial balance, prepare closing entries, and prepare financial statements.

Post adjusting journal entries, prepare financial statements, close the income statement accounts.

Close the permanent accounts, prepare financial statements, post effects to the ledger.

$3.$ Glenn Company paid $$9,000$ cash to its landlord on November $1,2023$ for rent covering the six$-$month period from November $1,2023$ through April $30,2024.$ The books are adjusted only at year$-$end. Which of the following does not correctly describe the effect on Glenn$$s financial statements of the December $31,2023$ adjusting entry?

Net income decreases $$3,000.$

Prepaid rent decreases $$3,000.$

Rent expense increases $$3,000.$

Stockholders' equity increases $$3,000.$

$4.$ Which of the following journal entries is created as the result of an accrual?

Account Title Debit Credit

Deferred revenue xxx

Revenue xxx

Account Title Debit Credit

Interest expense xxx

Interest payable xxx

Account Title Debit Credit

Cash xxx

Deferred revenue xxx

Account Title Debit Credit

Revenue receivable xxx

Unearned revenue xxx

$5.$Which of the following journal entries is created as the result of a deferral?

Multiple Choice

Account Title Debit Credit

Wages expense xxx

Wages payable xxx

Account Title Debit Credit

Interest expense xxx

Interest payable xxx

Account Title Debit Credit

Cash xxx

Unearned revenue xxx

Account Title Debit Credit

Accounts receivable xxx

Deferred revenue xxx