Which of the following statements is correct?

Question 2 options:

1)

Prepaid expenses, depreciation, and unearned revenues involve previously recorded assets and liabilities.

2)

Accrued expenses and accrued revenues involve assets and liabilities that have not yet been recorded.

3)

Adjusting entries are used to record both accrued expenses and accrued revenues

4)

Prepaid expenses, depreciation, and unearned revenues require adjusting entries to record the effects of the passage of time.

5)

All of these

Question 3 (1 point)

Which of the following statements is correct?

Question 3 options:

1)

When an insurance premium is paid in advance, the payment is normally recorded in a liability account called Prepaid Insurance.

2)

Goods and services are commonly sold to customers on the basis of oral or implied promises of future payment, called promissory notes.

3)

Increases and decreases in cash are always recorded in the equity account.

4)

An account called Land is commonly used to record increases and decreases in the land and buildings owned by a business.

5)

None of these statements are correct.

Question 4 (1 point)

The special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the

Question 4 options:

1)

Income Summary account

2)

Closing account

3)

Balance column account

4)

Contra account

5)

Temporary account

Question 5 (1 point)

Which of the following does not require an adjusting entry at year-end?

Question 5 options:

1)

Accrued interest on notes payable

2)

Supplies used during the period

3)

Cash invested by owner

4)

Accrued wages

5)

Expired portion of prepaid insurance

Question 6 (1 point)

What is double-entry accounting?

Question 6 options:

1)

An accounting system that disregards the accounting equation, A = L + E

2)

An accounting system that records the effects of transactions and other events in at least two accounts with equal debits and credits

3)

An accounting system in which each transaction affects and is recorded in two or more accounts with unequal debits and equal credits

4)

An accounting system in which the sum of the debit account balances never equals the sum of the credit account balances

5)

an accounting system in which errors never occur

Question 7 (1 point)

A debit is used to record

Question 7 options:

1)

an increase in a liability account

2)

a decrease in an asset account

3)

a decrease in the withdrawals account

4)

an increase in an asset account

5)

an increase in a revenue account

Question 8 (1 point)

After all appropriate closing entries to the following accounts have been made, what will be the balance in the Jeff Corvette, Capital account?

Service fees revenue $140,000

Various expenses 60,000

Jeff Corvette, capital 80,000

Jeff Corvette, withdrawals 15,000

Question 8 options:

1)

$65,000

2)

$80,000

3)

$130,000

4)

$145,000

5)

$280,000

Question 9 (1 point)

A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is

Question 9 options:

1)

recorded as a debit to an unearned revenue account

2)

recorded as a debit to a prepaid expense account

3)

recorded as a credit to an unearned revenue account

4)

recorded as a credit to a prepaid expense account

5)

not recorded in the accounting records

Question 10 (1 point)

Reversing entries are

Question 10 options:

1)

Optional

2)

Linked to accrued assets and liabilities that were created by adjusting entries at the end of the previous accounting period

3)

Used to simplify a company's record keeping

4)

Dated the first day of the next accounting period

5)

All of these

Question 11 (1 point)

The expense created by allocating the cost of plant and equipment to the periods in which they are used, representing the expense of using the assets, is called

Question 11 options:

1)

Accumulated depreciation

2)

The cash basis of accounting

3)

The matching principle

4)

Depreciation

5)

Allowance for depreciation