ACCOUNTING 101 FINAL EXAM E UPDATED
EXAM SCRIPT WITH COMPLETE ANSWERS
◉ ending balance.
Answer: the starting balance is equal to the ending balance
◉ when is revenue recognized with respect to accrual accounting.
Answer: when earned
◉ when is revenue recognized with respect to cash basis accounting.
Answer: when cash is received
◉ when are the adjusting entries required.
Answer: end of the period
◉ supplies.
Answer: debit- supplies expense
credit- supplies revenue
to record supplies for the month
, ◉ unearned revenues/ advance payments.
Answer: debit- advance payments
receivables- unearned service revenue
credit- advance payment revenues (service revenue)
to record unearned revenues but not yet received
◉ depreciation.
Answer: debit- depreciation expense
credit- accumulated depreciation
to record depreciation for the month
◉ accrued salaries and wages.
Answer: debit- wage and salary expense
credit- wages and salary payable
EXAM SCRIPT WITH COMPLETE ANSWERS
◉ ending balance.
Answer: the starting balance is equal to the ending balance
◉ when is revenue recognized with respect to accrual accounting.
Answer: when earned
◉ when is revenue recognized with respect to cash basis accounting.
Answer: when cash is received
◉ when are the adjusting entries required.
Answer: end of the period
◉ supplies.
Answer: debit- supplies expense
credit- supplies revenue
to record supplies for the month
, ◉ unearned revenues/ advance payments.
Answer: debit- advance payments
receivables- unearned service revenue
credit- advance payment revenues (service revenue)
to record unearned revenues but not yet received
◉ depreciation.
Answer: debit- depreciation expense
credit- accumulated depreciation
to record depreciation for the month
◉ accrued salaries and wages.
Answer: debit- wage and salary expense
credit- wages and salary payable
