AIPB - MASTERING ADJUSTING
ENTRIES-OPTIONAL TEST CORRECT
100%
A chart of accounts lists accounts in the following order ...
a. income, expense, asset, liability and owners' equity accounts.
b. asset, income, expense, liability and owners' equity accounts.
c. asset, income, owners' equity, expense and liability accounts.
d. asset, liability, owners' equity, income and expense accounts. - ANSWER d. asset,
liability, owners' equity, income and expense accounts.
On which of the following accounts do we normally not record depreciation?
a. Inventory
b. Equipment
c. Furniture
d. Building - ANSWER a. Inventory
Interest earned on a money market account and credited to your company's bank
account but not recorded on your books ...
a. is recorded on your books with a normal transaction entry.
b. is recorded on your books with an adjusting entry.
c. is recorded on your books with both a transaction entry and an adjusting entry.
d. requires no entry in your books. - ANSWER a. is recorded on your books with a
normal transaction entry.
Which of the following dates is appropriate for a profit and loss statement?
a. as of June 30, 20XX
b. June 30, 20:XX
c. for the Quarter Ended June 30, 20:XX
d. All of the above are appropriate. - ANSWER c. for the Quarter Ended June 30, 20:XX
Total debits must equal total credits. This is the basis of ...
a. an income statement.
b. an earnings statement.
c. a profit and loss statement.
d. double-entry bookkeeping. - ANSWER d. double-entry bookkeeping.
Which of the following accounts might be included in an adjusting entry?
, a. Cash
b. Buildings
c. Insurance Expense
d. all of the above - ANSWER d. all of the above
Which of the following is an asset?
a. Payables
b. Unearned Revenue
c. Receivables
d. Revenue - ANSWER c. Receivables
On the accrual basis, revenue is recorded when it is
a. received.
b. earned.
c. incurred.
d. paid. - ANSWER b. earned.
On the cash basis, expenses are recorded when they are ...
a. received.
b. earned.
c. incurred.
d. paid. - ANSWER d. paid.
Your company gets $5,000 in December to paint a house. The work is done in January.
How much revenue is reported on a cash basis in December and January, respectively?
a. $2,500 and $2,500
b. $5,000 and $0
c. $0 and $5,000
d. $2,000 and $3,000 - ANSWER b. $5,000 and $0
You receive $80,000 before you do work for a customer. The journal entry
to record this transaction is ....
a. Cash 80,000
Unearned Revenue 80,000
To record cash received
b. Cash 80,000
Accounts Receivable 80,000
To record cash received
c. Cash 80,000
Accounts Payable 80,000
ENTRIES-OPTIONAL TEST CORRECT
100%
A chart of accounts lists accounts in the following order ...
a. income, expense, asset, liability and owners' equity accounts.
b. asset, income, expense, liability and owners' equity accounts.
c. asset, income, owners' equity, expense and liability accounts.
d. asset, liability, owners' equity, income and expense accounts. - ANSWER d. asset,
liability, owners' equity, income and expense accounts.
On which of the following accounts do we normally not record depreciation?
a. Inventory
b. Equipment
c. Furniture
d. Building - ANSWER a. Inventory
Interest earned on a money market account and credited to your company's bank
account but not recorded on your books ...
a. is recorded on your books with a normal transaction entry.
b. is recorded on your books with an adjusting entry.
c. is recorded on your books with both a transaction entry and an adjusting entry.
d. requires no entry in your books. - ANSWER a. is recorded on your books with a
normal transaction entry.
Which of the following dates is appropriate for a profit and loss statement?
a. as of June 30, 20XX
b. June 30, 20:XX
c. for the Quarter Ended June 30, 20:XX
d. All of the above are appropriate. - ANSWER c. for the Quarter Ended June 30, 20:XX
Total debits must equal total credits. This is the basis of ...
a. an income statement.
b. an earnings statement.
c. a profit and loss statement.
d. double-entry bookkeeping. - ANSWER d. double-entry bookkeeping.
Which of the following accounts might be included in an adjusting entry?
, a. Cash
b. Buildings
c. Insurance Expense
d. all of the above - ANSWER d. all of the above
Which of the following is an asset?
a. Payables
b. Unearned Revenue
c. Receivables
d. Revenue - ANSWER c. Receivables
On the accrual basis, revenue is recorded when it is
a. received.
b. earned.
c. incurred.
d. paid. - ANSWER b. earned.
On the cash basis, expenses are recorded when they are ...
a. received.
b. earned.
c. incurred.
d. paid. - ANSWER d. paid.
Your company gets $5,000 in December to paint a house. The work is done in January.
How much revenue is reported on a cash basis in December and January, respectively?
a. $2,500 and $2,500
b. $5,000 and $0
c. $0 and $5,000
d. $2,000 and $3,000 - ANSWER b. $5,000 and $0
You receive $80,000 before you do work for a customer. The journal entry
to record this transaction is ....
a. Cash 80,000
Unearned Revenue 80,000
To record cash received
b. Cash 80,000
Accounts Receivable 80,000
To record cash received
c. Cash 80,000
Accounts Payable 80,000
