Quiz: Solid Footing Chapter 9 Pg 1

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Print your name on the Multiple Choice Answer Form

For each of the questions below circle the best answer to the question then place your answer on the Multiple Choice Answer Form. Only the answer on the Multiple Choice Answer Form will be counted for grading purposes.

Use the information given in the chart on Page 2 to answer questions 1 to 5

1. Look at the before and after words for Account Category: Property, Plant, & Equipment, and select the correct statement below:

A. All of the before and after words are correct.

B. All of the before and after words are incorrect.

C. Some of the before and after words are correct and some of the before and after words are incorrect.

2. Look at the before and after words for Account Category: Prepaid Assets, and select the correct statement below:

A. All of the before and after words are correct.

B. All of the before and after words are incorrect.

C. Some of the before and after words are correct and some of the before and after words are incorrect.

3. Look at the before and after words for Account Category: Accrued Liabilities, and select the correct statement below:

A. All of the before and after words are correct.

B. All of the before and after words are incorrect.

C. Some of the before and after words are correct and some of the before and after words are incorrect.

4. Look at the before and after words for Account Category: Unearned Revenue Liabilities, and select the correct statement below:

A. All of the before and after words are correct.

B. All of the before and after words are incorrect.

C. Some of the before and after words are correct and some of the before and after words are incorrect.

5. Look at the before and after words for Account Category 5: Accrued Assets, and select the correct statement below:

A. All of the before and after words are correct.

B. All of the before and after words are incorrect.

C. Some of the before and after words are correct and some of the before and after words are incorrect.

Quiz: Solid Footing Chapter 9 Pg 2

Use the table below to answer questions 1 to 5 on Page 1.

Summary of Timing Issues Related to Adjusting Entries

Account When is the Adjusting Entry made, and

Category Examples When does Cash Flow? when is Revenue or Expense Recognized?

Cash flows out:

Property, Equipment before the adj. entry Adjusting entry is made after cash flows out

Plant, & Buildings before expense is Expense is recognized after cash flows out

Equipment recognized

Cash flows out:

Prepaid Prepaid after the adj. entry Adjusting entry is made before cash flows out

Assets rent after expense is Expense is recognized before cash flows out

Supplies recognized

Wages Cash flows out:

Accrued payable after the adj. entry Adjusting entry is made before cash flows out

Liabilities Interest before expense is Expense is recognized after cash flows out

payable recognized

Receive

advance: Cash flows in:

Unearned Payment after the adj. entry Adjusting entry is made before cash flows in

Revenue for services after revenue is Revenue is recognized before cash flows in

Liabilities Payment recognized

for rent

Interest Cash flows in:

Accrued receivable after the adj. entry Adjusting entry is made before cash flows in

Assets Unbilled after revenue is Revenue is recognized before cash flows in

services recognized