QUESTION 31 Adjusting entries are only required when errors are made. True False QUESTION 32 The Cash account is usually affected by adjusting entries True False QUESTION 33 Every adjusting entry involves the recognition of either revenue or an expense. True C False QUESTION 34 Adjusting entries are prepared: Before financial statements and after a trial balance has been prepared. After posting but before a trial balance is prepared. C After a trial balance has been prepared and after financial statements are prepared. Anytime an accountant sees fit to prepare the entries. QUESTION 35 The purpose of adjusting entries is to: Record certain revenue and expenses that are not properly measured in the course of recording daily routine transactions Update the owners' equity for the changes in owners' equity that had been recorded in revenue and expense accounts throughout the pa Correct errors made during the accounting period. Prepare the revenue and expenses for recording the revenue and expenses of the next accounting period. QUESTION 36 Accumulated Depreciation is: C A contra-asset account An expense account C A revenue account C An asset account QUESTION 37 Prepaid expenses are: Assets Expenses C Income Liabilities reuon status QUESTION 38 Gourmet Shop purchased cash registers on April 1 for $12,000. If this asset has an estimated useful le of four years, what is the book value of the cash registers on May C 511.500 312 53.000 $9,000 $250 QUESTION 39 An asset purchased on January 1, 2015 for $60,000 that has an estimated Ite of 10 years will have a book value on December 31, 2018 of: $36,000 $60,000 $24.000 $42.000 QUESTION 40 On June 1, Norma Company signed a 12 month lease for warehouse space. The lease requires monthly rent of 5550 with 4 months paid in advance. Norma Company records the payment by debiting Prepaid Rent $2.200 and crediting Cash $2.200. At the end of June, wisat should be the balance of Norma's Prepaid Rent account? $1,650 $2.200 SSSO 50 QUESTION 41