Question : 31.The purpose of adjusting entries to: A. Prepare the revenue and expense : 1237598

 

 

31.The purpose of adjusting entries is to:   

A. Prepare the revenue and expense accounts for recording the revenue and expenses of the next accounting period.

 

B. Record certain revenue and expenses that are not properly measured in the course of recording daily routine transactions.

 

C. Correct errors made during the accounting period.

 

D. Update the owners’ equity account for the changes in owners’ equity that had been recorded in revenue and expense accounts throughout the period.

 

 

 

 

32.Which of the following is not a purpose of adjusting entries?   

A. To prepare the revenue and expense accounts for recording transactions of the following period.

 

B. To apportion the proper amounts of revenue and expense to the current accounting period.

 

C. To establish the proper amounts of assets and liabilities in the balance sheet.

 

D. To accomplish the objective of offsetting the revenue of the period with all the expenses incurred in generating that revenue.

 

 

 

 

33.Which of the following situations does not require Empire Company to record an adjusting entry at the end of January?   

A. On January 1, Empire Company purchased delivery equipment with an estimated useful life of five years.

 

B. On January 1, Empire Company began delivery service for a large client who will pay at the end of a three-month period.

 

C. At the end of January, Empire Company pays the custodian for January office cleaning services.

 

D. On January 1, Empire Company paid rent for six months on its office building.

 

 

 

 

34.Which of the following is not considered a basic type of adjusting entry?   

A. An entry to convert a liability to a revenue.

 

B. An entry to accrue unpaid expenses.

 

C. An entry to convert an asset to an expense.

 

D. An entry to convert an asset to a liability.

 

 

 

 

35.Adjusting entries are needed:   

A. Whenever revenue is not received in cash.

 

B. Whenever expenses are not paid in cash.

 

C. Only to correct errors in the initial recording of business transactions.

 

D. Whenever transactions affect the revenue or expenses of more than one accounting period.

 

 

 

 

36.No adjusting entry should consist of:   

A. A debit to an expense and a credit to an asset.

 

B. A debit to an expense and a credit to revenue.

 

C. A debit to an expense and a credit to a liability.

 

D. A debit to a liability and a credit to revenue.

 

 

 

 

37.Which of the following is not an example of an adjusting entry?   

A. The entry to record unpaid expenses.

 

B. The entry to record uncollected revenues.

 

C. The entry to convert liabilities to revenue.

 

D. The entry to pay outstanding bills.

 

 

 

 

38.Which of the following is considered an adjusting entry?   

A. The entry to record depreciation.

 

B. The entry to pay salaries.

 

C. The entry to pay outstanding bills.

 

D. The entry to declare a dividend distribution.

 

 

 

 

39.The normal balance of the Accumulated Depreciation account is:   

A. A debit balance.

 

B. A credit balance.

 

C. Either a debit balance or a credit balance.

 

D. There is no normal balance for this account.

 

 

 

 

40.If Hot Bagel Co. estimates depreciation on an automobile to be $578 for the year, the company should make the following adjusting entry:   

A. Debit Accumulated Depreciation $578 and credit Depreciation Expense $578.

 

B. Debit Depreciation Expense $578 and credit Automobile $578.

 

C. Debit Depreciation Expense $578 and credit Accumulated Depreciation $578.

 

D. Debit Automobile $578 and credit Depreciation Expense $578.