Question : 81.In July, a company pays three years’ insurance in advance. : 1244522

81.In July, a company pays three years’ insurance in advance. The December 31 adjusting entry is a debit to

 

a.

Insurance Expense and a credit to Cash.

b.

Prepaid Insurance and a credit to Insurance Expense.

c.

Insurance Expense and a credit to Prepaid Insurance.

d.

Prepaid Insurance and a credit to Cash.

 

 

 

82.An adjusted trial balance is prepared to

 

a.

facilitate preparation of the financial statements.

b.

test that the ledger is in balance after the accounts have been adjusted.

c.

facilitate preparation of the adjusting entries.

d.

both test that the ledger is in balance after the accounts have been adjusted and facilitate preparation of the financial statements.

 

 

 

83.Which of the following accounts would appear on an adjusted trial balance but probably would not appear on a trial balance?

 

a.

Service Revenue

b.

Accounts Payable

c.

Supplies Expense

d.

Cash

 

 

 

84.Which of the following accounts probably would be greater in amount on an adjusted trial balance than on a trial balance?

 

a.

Prepaid Advertising

b.

Painting Supplies

c.

Accumulated Deprecation–Building

d.

Unearned Revenue

 

 

 

85.Which of the following accounts probably would contain a smaller dollar amount on the adjusted trial balance than on the trial balance?

 

a.

Cash

b.

Accumulated Depreciation–Equipment

c.

Office Supplies

d.

Wages Expense

 

 

 

86.Which of the following accounts would be found on the credit side of the adjusted trial balance?

 

a.

Prepaid Insurance

b.

Accumulated Depreciation–Equipment

c.

Dividends

d.

Depreciation Expense

 

 

 

87.Which of the following accounts most likely would be found on both a trial balance and an adjusted trial balance?

 

a.

Supplies Expense

b.

Insurance Expense

c.

Depreciation Expense–Equipment

d.

Utilities Expense

 

 

 

88.Which of the following accounts probably would not appear in a trial balance but probably would appear in an adjusted trial balance?

 

a.

Unearned Revenue

b.

Depreciation Expense–Equipment

c.

Cash

d.

Accumulated Depreciation–Equipment

 

 

 

89.In the accounting cycle, which of the following is considered the output document or record?

 

a.

Source documents

b.

Financial statements

c.

The ledger

d.

The journal

 

 

 

90.Which of the following sequences of actions describes a proper sequence in the accounting cycle?

 

a.

Post, close, prepare, adjust, analyze, record

b.

Record, post, close, prepare, adjust, analyze

c.

Analyze, record, post, adjust, prepare, close

d.

Prepare, record, post, adjust, analyze, close