ACCT 301 EXAM 1 MULTIPLE CHOICE
A Trial Balance May Prove that Debits and Credits are equal, but - Answers -a. an
amount could be entered in the wrong account
b. a transaction could have been entered twice
c. a transaction could have been omitted
D. ALL OF THESE ANSWERS ARE CORRECT
An Adjusting entry would not include - Answers -a debit to an expense account and a
credit to a revenue account
Which of the following describes a deferral account - Answers -Cash is received before
revenue is recognized
To compute interest expense on a note for an adjusting entry, the formula is (principle x
annual rate x a fraction) The numerator and Denominator of the fraction are: - Answers
-Length of time the note has been outstanding/12 months
An accrued expense can best be described as an amount - Answers -not paid and
currently not matched with earnings
which type of account is always debited during the closing process? - Answers -
Revenue
Which of the following is not part of the closing process? - Answers -Close dividends
account to income summary.
Murdock Corporation earned revenues of 225,000, incurred expenses of 232,000, and
paid dividends of 4,000 during the current year. After all closing entries have been
posted to the Retained Earnings account, the balance will: - Answers -decrease by
11,000
Muchachi Company began the year with a balance in the supplies account of 3,200.
During the year, Muchachi purchased supplies for 25800. An inventory of the supplies
at the year-end showed supplies on hand of 4,100. Supplies Expenses reported on
Muchaschis income statement for the year is - Answers -24,900
The income statement of Dolan Corporation for 2025 Included the following items:
Interest Revenue 141,000
Salaries and wages Expense 210,000
Insurance expense 21,200
The following Baloances have been excerpted from Dolans Corporation's balance
sheets:
A Trial Balance May Prove that Debits and Credits are equal, but - Answers -a. an
amount could be entered in the wrong account
b. a transaction could have been entered twice
c. a transaction could have been omitted
D. ALL OF THESE ANSWERS ARE CORRECT
An Adjusting entry would not include - Answers -a debit to an expense account and a
credit to a revenue account
Which of the following describes a deferral account - Answers -Cash is received before
revenue is recognized
To compute interest expense on a note for an adjusting entry, the formula is (principle x
annual rate x a fraction) The numerator and Denominator of the fraction are: - Answers
-Length of time the note has been outstanding/12 months
An accrued expense can best be described as an amount - Answers -not paid and
currently not matched with earnings
which type of account is always debited during the closing process? - Answers -
Revenue
Which of the following is not part of the closing process? - Answers -Close dividends
account to income summary.
Murdock Corporation earned revenues of 225,000, incurred expenses of 232,000, and
paid dividends of 4,000 during the current year. After all closing entries have been
posted to the Retained Earnings account, the balance will: - Answers -decrease by
11,000
Muchachi Company began the year with a balance in the supplies account of 3,200.
During the year, Muchachi purchased supplies for 25800. An inventory of the supplies
at the year-end showed supplies on hand of 4,100. Supplies Expenses reported on
Muchaschis income statement for the year is - Answers -24,900
The income statement of Dolan Corporation for 2025 Included the following items:
Interest Revenue 141,000
Salaries and wages Expense 210,000
Insurance expense 21,200
The following Baloances have been excerpted from Dolans Corporation's balance
sheets:
