AIPB TEST BANK FULLY SOLVED EDITION WITH
100% CORRECT SOLUTIONS 2026
◉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 20XX
c. for the Quarter Ended June 30, 20XX
d.All of the above are appropriate . Answer: c. for the Quarter Ended 30,
20XX
◉Total debits must equal total credits. This is the basis of ....
a. an income statement
b. an earnings statementterm-24
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: c. Insurance Expense
, ◉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, respectivelty?
100% CORRECT SOLUTIONS 2026
◉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 20XX
c. for the Quarter Ended June 30, 20XX
d.All of the above are appropriate . Answer: c. for the Quarter Ended 30,
20XX
◉Total debits must equal total credits. This is the basis of ....
a. an income statement
b. an earnings statementterm-24
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: c. Insurance Expense
, ◉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, respectivelty?
