True or False: Assets, liabilities and owners equity accounts will start each financial statement cycle with the same balance they had at the end of the previous cycle. *

5 points

True

False

True or False: Audits are paid for by the creditors and investors of a company. *

5 points

True

False

True or False: Determining when to recognize revenue can be difficult for accountants. *

5 points

True

False

Which of the following accounts would be closed at the end of the financial statement cycle? *

5 points

a. Accounts receivable

b. Accounts payable

c. Cost of goods sold

d. Unearned revenue

What type of account is unearned revenue? *

5 points

a. Asset

b. Liability

c. Revenue

d. Equity

Which of the following is not one of the four types of adjustments? *

5 points

a. Prepaid revenue

b. Accrued expenses

c. Unearned revenue

d. Prepaid expenses

Jenkins Company received $600 from a client in May for work Jenkins would perform during May and June. What entry should Jenkins make on May 31 if one- third of the work is complete on that date? *

5 points

a. Dr> Cash 600/ Cr> Unearned Revenue 600

b. Dr> Unearned Revenue 200/ Cr> Revenue 200

c. Dr> Cash 600 / Cr> Revenue 600

d. Dr> Unearned Revenue 600/ Cr> Revenue 600