Closed Accounting Daily Quiz

[CPA-in-transit]

For those who are taking BSA or any related accounting field. Feel free to answer the following problems


1. Adjusting entries that may be reversed include those for prepaid or unearned items that
a. create an asset or an liability account
b. were originally entered in a revenue or expense account
c. were originally entered in an asset or liability account
d. create an asset or liability account and were originally entered in a revenue or expense
account

2. Reversing entries may not be made on adjusting entries for
a. the accrual of income or expense
b. the unexpired portion of prepayments
c. the unearned portion of advances received
d. the expired portion of prepayments

3. A prepaid expense can best be described as an amount
a. ρáíd and currently matched with revenues
b. ρáíd and not currently matched with revenues
c. not ρáíd and currently matched with revenues
d. not ρáíd and not currently matched with revenues

4. An accrued expense can best be described as an amount
a. ρáíd and summary currently matched with earnings
b. ρáíd and not currently matched with earnings
c. not ρáíd and currently matched with earnings
d. not ρáíd and not currently matched with earnings

5. If an entity uses the expense method of initial recording of expenses, the year-end adjusting
entry involves
a. debiting a prepaid asset account for the expired portion of the advance payment made
b. debiting an expense account for the expired portion of the advance payment made
c. crediting an expense account for the unexpired portion of the advance payment made
d. crediting a prepaid asset account for the unexpired portion of the advance payment
made

 

[-Hexacode]

hmmm

 

[Prat34]

Try
1.c
2.D
3.B
4.C
5.A