Adjusting entries quiz

1. 1.Forgetting to accrue $500 of wages at month-end causes:

   Assets overstatedNo effectExpenses overstatedExpenses understated, liabilities understated
2. 2.Wages are $180 per day. Three days are earned but unpaid at month-end. Accrued wages?

   Your answer (dollars)
3. 3.Which adjustments are usually reversed? Select all that apply.

   DepreciationPrepaid insurance expirationAccrued interestAccrued wages

   Select all that apply.

4. 4.Earning part of unearned revenue:

   Dr Service Revenue, Cr Unearned RevenueDr Cash, Cr Service RevenueDr Accounts Receivable, Cr Unearned RevenueDr Unearned Revenue, Cr Service Revenue
5. 5.Supplies account $900; count shows $260 on hand. Supplies expense for the period?

   Your answer (dollars)
6. 6.Unbilled work completed at month-end is recorded as:

   No entry until invoicedDr Unearned Revenue, Cr RevenueDr Cash, Cr RevenueDr Accounts Receivable, Cr Service Revenue
7. 7.Which adjustment types exist? Select all that apply.

   Accrued expenseUnearned revenue earnedOwner investmentPrepaid expense used

   Select all that apply.

8. 8.Interest of $90 accrued on March 31 was reversed April 1. On April 15, $135 interest is paid. What is April's interest expense?

   Your answer (dollars)
9. 9.A meter shows $210 of March electricity; the bill arrives in April. March entry:

   Dr Utilities Expense, Cr CashDr Prepaid Utilities, Cr CashNo entry until the bill arrivesDr Utilities Expense, Cr Utilities Payable
10. 10.A reversing entry is dated:

    The last day of the current periodWhen cash is paidAny dayThe first day of the next period
11. 11.A $12,000 note at 6% annual interest; one month unrecorded. Accrued interest?

    Your answer (dollars)
12. 12.Adjusting entries almost never involve:

    ExpensesRevenueLiabilitiesCash
13. 13.Annual memberships prepaid: 20 members × $600. One month is earned. Revenue for the month?

    Your answer (dollars)
14. 14.Rent of $3,600 was prepaid on April 1 for April–June. What is the April 30 adjustment?

    Your answer (dollars)
15. 15.Match each adjustment to its type.

    Insurance used upChoose…Prepaid expenseAccrued expenseUnearned revenueAccrued revenueWages earned, unpaidChoose…Prepaid expenseAccrued expenseUnearned revenueAccrued revenueAdvance payment earnedChoose…Prepaid expenseAccrued expenseUnearned revenueAccrued revenueWork done, not billedChoose…Prepaid expenseAccrued expenseUnearned revenueAccrued revenue
16. 16.$2,400 was prepaid for 12 months of insurance. What is one month's adjustment?

    Your answer (dollars)

Explanations for every option appear after you submit. Adjusting entries quiz is self-practice, not a proctored test.