Question

Multiple Choice Questions:

1) An example on an ACCRUAL journal entry is:

A) Debit to Interest Expense and Credit to Interest Payable, because the expense has been incurred but it wasn't paid yet which creates a liability

B) Debit to A/R and Credit to Service Revenue because the service has been provided and the customer already paid us in advance

C) Debit to Salaries Expense and Credit to Salaries Payable, because the expense has been incurred and cash was paid at the same time

D) Debit to Unearned Revenue & Credit to Revenue is an example on an ACCRUAL entry, which means now that we've finally provided the service, we're not liable anymore to the customer because the cash we got from them in advance is finally & officially a revenue for us now

2) Some of what we learned about Adjusting Entries in general and examples on them?

A) A journal entry to record the amount of left over supplies at the end of a period

B) A journal entry to Debit Accumulated Depreciation, and a Credit to Depreciation Expense

C) A journal entry to record the amount of supplies consumed within a period of time

D) A journal entry to record the ENDING balances of the accounts, not the CHANGES in the balances

3) Regarding what we learned about the Adjusted Trial Balance?

A) Because of the Adjusting Journal Entries that we recorded, the Total Debits in the Adjusted Trial Balance may or may not equal the total Credits

B) The Accrual Journal Entry that we recorded for A/R made the A/R ending balance decrease in the Adjusted Trial Balance

C) The Depreciation Expense that we recorded made the ending balance for the Equipment account decrease in the Adjusted Trial Balance comparing to how it was in the Unadjusted Trial Balance

D) To prepare the Adjusted Trial Balance, we start by looking at the Unadjusted Trial Balance, then reflect all the adjustments to it and that's how we'll end up with the Adjusted Trial Balance with some of the balances got adjusted

Answer 1

1X fx BICIDI EI K | L | M | N O P a IRIS MCQ Answer Α. Accruals means any revenue earned or expense incurred, for which cash has not yet been paid/exchanged. An example on an accrual journal entry is Debit to Interest Expense and Credit to Interest Payable, Expense has been incurred but it wasn't paid yet. 2 D Adjusting entries are passed on the last day of the balance sheet to comply with the accural method. Adjusting entries are also known as closing entries. 3 D Adjusted trial balance contains general ledger heads and their balances after any adjustments have been made. Unadjusted trial balance is used by the accountant to show neccesary adjustments in their balances. The Sum up of all adjusted balances is known as Adjusted trial balance.