MULTIPLE CHOICE Instructions: Circle the best answer for each of the following questions. 1. Entries required at the end of an accounting period to bring the accounts up to date and to assure the proper matching of revenues and expenses are called a. matching entries b. adjusting entries c. contra entries d. correcting entries 2. The amount of accrued but unpaid expenses at the end of the fiscal period is both an expense and a(n): a. liability b. asset c. deferral d. revenue 3. If the effect of the debit portion of an adjusting entry is to increase the bal- expense account, which of the following describes the effect of ance of an the credit portion of the entry? a. Decreases the balance of a contra asset account b. Increases the balance of an asset account c. Decreases the balance of an asset account d. Increases the balance of an expense account 4. If the effect of the credit portion of an adjusting entry is to increase the bal- ance of a liability account, which of the following describes the effect of the debit portion of the entry? a. Increases the balance of a contra asset account b. Increases the balance of an asset account c. Decreases the balance of an asset account d. Increases the balance of an expense account 5. The balance in the prepaid rent account before adjustment at the end of the year is $12,000, which represents three months' rent paid on Decem ber 1. The adjusting entry required on December 31 is: a. debit Prepaid Rent, $4,000; credit Rent Expense, $4,000 b. debit Rent Expense, $4,000; credit Prepaid Rent, $4,000 c. debit Prepaid Rent, $8,000; credit Rent Expense, $8,000 d. debit Rent Expense, $8,000; credit Prepaid Rent, $8,000