Question

2. Match each type of adjusting entry with its definition.

1. Deferred revenue
2. Accrued expenses
3. Prepaid expenses
4. Accrued revenue

Match each of the options above to the items below.

• Receive cash in the current period that will be recorded as a revenue in a future period.

• Record an expense in the current period that will be paid in cash in a future period.

• Record a revenue in the current period that will be collected in cash in a future period.

• Pay cash (or have an obligation to pay cash) in the current period that will be recorded as an expense in a future period.

3.  Match each term related to closing entries with its description.

1. Closing entries
2. Permanent accounts
3. Temporary accounts
4. Post-closing trial balance
5. Adjusted trial balance

Match each of the options above to the items below.

• Revenues, expenses, and dividends.

• List of permanent accounts and their balances.

• Transfer of temporary balances to retained earnings.

• List of permanent and temporary accounts and their balances.

• Assets, liabilities, and stockholders

Answer 1

2
Deferred revenue	Receive cash in the current period that will be recorded as a revenue in a future period.
Accrued expenses	Record an expense in the current period that will be paid in cash in a future period.
Prepaid expenses	Pay cash (or have an obligation to pay cash) in the current period that will be recorded as an expense in a future period.
Accrued revenue	Record a revenue in the current period that will be collected in cash in a future period.
3
Closing entries	Transfer of temporary balances to retained earnings.
Permanent accounts	Assets, liabilities, and stockholders equity
Temporary accounts	Revenues, expenses, and dividends.
Post-closing trial balance	List of permanent accounts and their balances.
Adjusted trial balance	List of permanent and temporary accounts and their balances.