Adjusting Entries
Outstanding expenses are a:
Current liability
Fixed liability
Contingent liability
None of the above
Current liability
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Entries made at the end of the accounting period to correct and update the record of business transactions are called:A. Rectifying entries
B. Closing entries
C. Reversing entries
D. Adjusting entries
Expenses against which goods or services have been received but payment has not been made are called:
A. Prepaid expenses
B. Deferred expenses
C. Outstanding expenses
D. Advance expenses
The adjusting entry for outstanding rent is:
A. Outstanding rent – Dr. & Rent expense – Cr.
B. Outstanding rent – Dr. & Cash – Cr.
C. Rent expense – Dr. & A/C P.A – Cr.
D. Rent expense – Dr. & Outstanding rent – Cr.
Adjusting entries are made:
A. At the beginning of the year
B. At the end of the year
C. During the year
D. All of these
Accrued revenue is revenue that:
A. Has been received but not earned
B. Has been earned but not received
C. Has been earned and received
D. Has neither been earned nor received
The entries required at the end of the period to update the accounts before preparing financial statements are known as:
A. Closing entries
B. Adjusting entries
C. Journal entries
D. Opening entries
Which of the following statements is most appropriate?
A. Adjusting entries affect balance sheet accounts only
B. Adjusting entries affect income statement accounts only
C. Adjusting entries affect both balance sheet accounts and income statement accounts
D. Adjusting entries may affect two or more balance sheet accounts or two or more income statement accounts, but they cannot affect both balance sheet and income statement accounts
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