The proper journal entry to record depreciation of a company car would entail which of the following?

Question 1 options:

a)

A debit to Depreciation Expense.

b)

A credit to Accumulated Depreciation.

c)

A credit to car

d)

Both A and B.

e)

None of these.

Question 2(2 points)

If Sven Company pays employees each Wednesday for the weekly pay period ending the previous Friday, and an entry is made each Friday to accrue the payroll for that week, the journal entry to record on payday (Wednesday) would involve a debit to:

Question 2 options:

a)

Wage Expense.

b)

Wages Payable.

c)

Cash.

d)

Cash Expense.

e)

None of these.

Question 3(2 points)

Under the Cash basis of accounting, revenues are recognized when goods are sold and delivered, or services are rendered.

Question 3 options:

a) Trueb) False

Question 4(2 points)

Which of the following would not require an adjusting journal entry at the end of an accounting period?

Question 4 options:

a)

Multiperiod costs that must be split among two or more accounting periods.

b)

Expenses incurred in a given period but not as yet recorded in the accounts.

c)

Cash received for services provided.

d)

Revenues earned in a given period but not as yet recorded in the accounts.

e)

None of these.

Question 5(2 points)

The adjusting process:

Question 5 options:

a)

requires the accountant to analyze the various accounts maintained by a business.

b)

is an outgrowth of the accrual basis of accounting.

c)

is an outgrowth of the periodicity assumption.

d)

All of these.

Question 6(2 points)

Kristoff Ice Company uses the perpetual inventory system. Which of the following statements is correct?

Question 6 options:

a)

When Kristoff records a sale, it should also debit inventory.

b)

When Kristoff records a sale, it should also credit inventory.

c)

When Kristoff records a sale, it should also credit cost of goods sold.

d)

When Kristoff records a sale, it should also debit cost of goods available for sale.

Question 7(2 points)

On August 1, supplies were purchased. Supplies were debited and Accounts Payable credited for $2,500.$700 of these supplies were on hand at the end of August.The entry to adjust the supplies account as of August 31:

Question 7 options:

a)

requires a debit to Supplies for $700.

b)

requires a credit to Supplies for $1,800.

c)

requires a debit to Supplies for $2,200.

d)

requires a credit to Accounts Payable for $1,500.

e)

None of these.

Question 8(2 points)

The Carson company failed to record utilities consumed during the current period.The company will be billed for the utilities during the next accounting period.As a result, current period assets, liabilities, stockholders' equity, and income, respectively, are:

Question 8 options:

a)

overstated, overstated, correct, correct.

b)

correct, understated, overstated, overstated.

c)

overstated, understated, overstated, overstated.

d)

overstated, understated, correct, correct.

e)

None of these.

Question 9(2 points)

On January 15, Agnar paid $1,000 in insurance premiums for a two-month policy covering January 15 to March 15.The payment was initially recorded to Prepaid Insurance.Approximately how much should be reported in both the Insurance Expense and Prepaid Insurance after an adjusting entry is made on January 31?

Question 9 options:

a)

Insurance Expense of $250.

b)

Prepaid Insurance of $750.

c)

Both A and B.

d)

A or B, but not both.

e)

None of these.

Question 10(2 points)

On March 1, 2020, Anna purchased a one-year insurance policy for $4,800.On that date, Prepaid Insurance was debited for $4,800.If Anna desires to prepare financial statements at the end of March, the adjusting journal entry would include a:

Question 10 options:

a)

debit to Insurance Expense for $2,400.

b)

credit to Prepaid Insurance for $2,200.

c)

credit to Insurance Expense for $2,200.

d)

debit to Insurance Expense for $400.

e)

None of these.

Question 11(2 points)

On September 3, 2019, Olaf purchased $500 of supplies and debited the Supplies account.At the end of September, $200 of these supplies remained on hand.The adjusting entry at the end of September would include:

Question 11 options:

a)

a debit to Supplies and a Credit to Supplies Expense for $500.

b)

a debit to Supplies and a Credit to Supplies Expense for $300.

c)

a debit to Supplies Expense and a Credit to Supplies for $300.

d)

a debit to Supplies Expense and a Credit to Supplies for $800.

e)

None of these.

Question 12(2 points)

If Sven Company pays employees each Wednesday for the weekly pay period ending the previous Friday, and an entry is made each Friday to accrue the payroll for that week, the journal entry to record on each Friday would involve a debit to:

Question 12 options:

a)

Wage Expense.

b)

Wages Payable.

c)

Cash

d)

Cash Expense

e)

None of these.

Question 13(2 points)

The Income Summary account:

Question 13 options:

a)

will receive entries only during the closing process.

b)

will appear on a company's balance sheet.

c)

will always have a credit balance.

d)

None of these.

Question 14(2 points)

On July 1, 2019, Jose Anna entered into a one-year warehouse rental agreement for $60,000.On that date, Jose debited Prepaid Warehouse Rent for $60,000.If Jose desires to prepare financial statements at the end of December , the adjusting journal entry would include a:

Question 14 options:

a)

debit to Warehouse Rent Expense for $5,000.

b)

debit to Prepaid Warehouse Rentfor $30,000.

c)

credit to Warehouse RentExpense for $30,000.

d)

debit to Warehouse Rent Expense for $30,000.

e)

None of these.

Question 15(2 points)

Elsa and Friends year-end is December 31.On December 1, 2019, Elsa borrowed $100,000 on a one-year loan.Interest on this loan accrues at 1% per month.The adjusting journal entry to record on December 31, 2019 would include:

Question 15 options:

a)

a debit to Interest Expense for $1,000.

b)

a credit to Interest Expense for $1,000.

c)

a debit to Interest Payable for $100.

d)

a debit to Note Payable for $100.

e)

None of these.

Question 16(2 points)

The matching concept refers to the matching of:

Question 16 options:

a)

Assets to liabilities.

b)

Cash to rent.

c)

Revenues and expenses.

d)

Expenses and assets.

Question 17(2 points)

During June, Lionel Magazine sold for cash an advertising space for $1200 total to be run in the July through December issues.On that date, the Lionel Magazine Company properly recognized Unearned Revenue.The adjusting entry to record on July 31 for the first month of adverting space includes:

Question 17 options:

a)

a debit to Unearned Revenue for $200.

b)

a credit to Unearned Revenue for $400.

c)

a credit to Revenue for $1,200.

d)

a debit to Cash for $2,000.

e)

None of these.

Question 18(2 points)

Which of the following accounts is a permanent account?

Question 18 options:

a)

Travel expense.

b)

Service revenue.

c)

Cash.

d)

All the above.

Question 19(2 points)

Which of the following accounts will not appear in a post-closing trial balance?

Question 19 options:

a)

Cash.

b)

Accumulated Depreciation.

c)

Retained Earnings.

d)

Utility Expense

e)

None of these.

Question 20(2 points)

Earned revenues represent future revenues that have been collected but not yet earned.

Question 20 options:

a) Trueb) False