Question 1

Which of the following could appear in an adjusting entry, closing entry, and reversing entry?

Depreciation Expense, Buildings

Salary Expense

Cash

Withdrawals

Question 2

Reversing entries occur at the beginning of the accounting period and:

reverse the adjusting entries.

help to reduce potential errors.

simplify the bookkeeping associated with accruals from the prior period.

All of the above are correct.

Question 3

Which of the following could be recorded as a reversing entry?

Depreciation of building

Cash

Allocation of prepaid rent in the current period

Accrual of interest expense

Question 4

Which of the following adjustments may be reversed?

The adjustment to Accrue Salaries Payable

The adjustment to Record Depreciation Expense

The adjustment to Allocate Prepaid Insurance to the current period

The adjustment for Petty Cash replenishment