Chapter 3

Question 1

On oct 1, seabird ap received 6000 from a Zentaur for four months rent. The receipt was credited to unwanted revenue. what adjusting entry is needed on dec 31
A: Debit 1500 under unearned rent revenue. Credit 1500 unter rent revenue
B: Debit 4500 under cash. credit 4500 under rent revenue
C; Debit 1500 under rent revenue. Credit 1500 under unearned rent revenue
D: Debit 4500 under unearned rent revenue. Credit 4500 unter rent revenue

Answer 1

D

Question 2

.Equipment of $150,000, Accumulated depreciation equipment of $22,500 and Depreciation expenses equipment of $7,500  appear on the adjusted trial balance of Park National Company. The carrying amount of the equipment i
A.$120,000
B.$127,500
C.$142,500
D.$150,000

Answer 2

B bc Carrying amount = Equipment -Accumalted Depreciation

Question 3

.All of the following statements are true expect one. Which statement is false?
A.Accrual-basis accounting produces better information than cash-basis accounting
B.Adjusting entries are required for a business that uses the cash-basis accounting
C.The matching concept directs accountants to identify and measure all expenses incurred and deduct them from revenues earned during the same period.
D.A fiscal year is not always the same as a calendar year

Answer 3

B

Question 4

Which of the following accounts is not closed? 
A: Accumalated Depreciation 
B: interest revenue 
C: Dividends 
D : Depreciation Expense

Answer 4

A

Question 5

abc is panning a 5 Million advertising campaign. the expense of this advertising campaign should be recognized when
A: Planning for the campaign is completed
B: Cash is paid to the television stations which will run the commercials
C: The commercials are filmed
D: The commercials are brodcastetd on television

Answer 5

D

Question 6

A major purpose of preparing closing entries is to
A: Close the liability accounts
B: Adjust the asset accounts to their correct current balances
C: Update the retained earnings account
D: Record the dividends

Answer 6

C