Review Game Zone
Flash Cards
(current)
Games
Teachers
Search
Adv. Accounting - Ch. 9 Review
Test Description: Notes Payable, Prepaid Expenses & Accrued Expenses
Instructions: Answer all questions to get your test result.
1) The interest rate that banks charge their most creditworthy customers is called the prime rate.
A
False
B
True
2) Corporations pay estimated federal income taxes quarterly. Any unpaid federal income tax is recorded as a prepaid expense.
A
False
B
True
3) Wilson, Inc. initially records prepaid insurance as an asset; therefore, it should record a reversing entry for insurance.
A
True
B
False
4) If supplies are initially recorded as assets, the adjusting entry to record the use of supplies is a debit to Supplies and a credit to Supplies Expense.
A
True
B
False
5) After the adjusting entry has been recorded for sales supplies, the asset amount represents the portion of sales supplies not used during the current fiscal period.
A
True
B
False
6) if the adjusting entry included a debit to the asset account and a credit to the expense account, the reversing entry would include a debit to the expense and a credit to the asset
A
False
B
True
7) Adjusting entries are recorded so that the supplies used during a fiscal period are reported as expenses & the supplies not used are reported as assets. This is an application of
A
adequate disclosure
B
revenue recognition
C
historical cost
D
matching expenses with revenue
8) To determine if a reversing entry is needed, accountants apply which of the following rules?
A
If a clos. entry creates a bal. in an asset or liability acct., the clos. entry needs to be reversed
B
If an adj. entry creates a bal. in an expense or revenue acct., the adj. entry needs to be reversed.
C
If an adj. entry creates a bal. in an asset or liability acct., the adj. entry needs to be reversed.
D
If a clos. entry creates a bal. in an expense or revenue acct., the clos. entry needs to be reversed
9) Wilson, Inc. signs a 180-day, 8% note for $6,000. The interest due on the note at maturity will be
A
$240
B
$480
C
$200
D
$280
10) The beg. bal. of Supplies is $12,000, and the adjusting entry to record the supplies used is $8,000. The amount of supplies remaining at the end of the period is
A
$4,000
B
$0
C
$12,000
D
$8,000
*select an answer for all questions
Check Results & Get Answers
Play Games with the Questions Above
Teachers: Create FREE classroom games with your questions
Click for more info!
©2007-2024
ReviewGameZone.com
|
About
|
Privacy
|
Contact
|
Terms
|
Site Map
WAIT! Find what you needed?
×
Still Looking for the Answers?
Have Another Question?
Play a Review Game with These Questions?
Want to Make Your Own Test Like This One?