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adjusting entries are needed to correctly measure the​ ________.

1

A company receives payment from one of its customers on August 5 for services performed on July 21. Which of the following entries would be recorded if the company uses accrual basis​ accounting?

A.

Supplies​1,000
      Cash     ​1,000

B.

Cash​1,000
      Accounts Receivable     ​1,000

C.

Cash​1,000
      Service Revenue     ​1,000

D.

Salaries Expense​1,000
      Cash     ​1,000

2

The accounting principle that ensures all expenses are recorded during the period when they are incurred and offsets those expenses against the revenues of the period is called the​ ________ principle.

A.

matching

B.

revenue recognition

C.

comparison

D.

accrual

3

To match expenses against revenues means to​ ________.

A.

add expenses incurred during one period from revenues earned during the previous period

B.

add expenses incurred during one period from revenues earned during that same period

C.

subtract expenses incurred during one period from revenues earned during the previous period

D.

subtract expenses incurred during one period from revenues earned during that same period

4

Adjusting entries are needed to correctly measure the​ ________.

A.

net income​ (loss) on the balance sheet

B.

net income​ (loss) on the income statement

C.

ending balance in the Cash account

D.

beginning balance in the Cash account

5

Classic​ Artists’ Services signed a contract with a maintenance service company to maintain a building that Classic will use for office purposes. The contract states that the work will begin work on February 1 and end on May 31. Classic​ Artists’ will pay the maintenance service company

$8,000

at the end of May. It accrues Maintenance Expense at the end of every month. What is the balance in the Accounts Payable account for amounts owed to the maintenance service company at the end of​ March?

A.

Credit balance of$8,000

B.

Credit balance of $4,000

C.

Debit balance of $4,000

D.

Debit balance of $ 8000

6

Saturn, Inc. signed a

oneminus−year

​$24,000 note payable at​ 8% interest on March​ 1, 2017. How much interest expense must be accrued on May​ 31, 2017? ​(Round any intermediate calculations to two decimal​ places, and your final answer to the nearest whole​ number.)

A.

​$1,920

B.

​$12,800

C.

​$480

D.

​$240

7

Anthony Delivery Service has a weekly payroll of

$39,000.

December 31 falls on Tuesday and Anthony will pay its employees the following Monday​ (January 6) for the previous full week. Assume that Anthony has a

fivefiveminus−day

workweek and has an unadjusted balance in Salaries Expense of

$885,000.

What is the December 31 balance of Salaries Expense after adjusting entries are recorded and​ posted?

A.

$900,600

B.

$924,000

C.

$908,400

D.

$ 885000

8

On January​ 1, 2015, the Accounts Receivable of​ Linda, Inc. had a debit balance of

$200,000.

During​ January, the company provided services for

$400,000

on account. The company collected

$230,000

from its customers on account in January. What was the ending balance in the Accounts Receivable account at the end of​ January?

A.

$600,000

B.

$170,000

C.

$370,000

D.

$ 400,000

9

The following Office Supplies account information is available for​ Able, Inc.

Beginning balance​$1,800
Office Supplies expensed​5,000
Ending balance​2,000

From the above​ information, calculate the amount of office supplies purchased.

A.

​$1,800

B.

​$5,200

C.

​$5,000

D.

​$2,000

10

Qwerty, Inc. prepaid

$9,600

on October​ 1, 2014 for a

oneminus−year

insurance premium. On January​ 1, 2015 of the next year​ (after December 31​ adjustments), the Prepaid Insurance account will have a debit balance of​ ________. (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest whole​number.)

A.

$7,200

B.

$9,600

C.

$8,000

D.

$1,600

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