FINANCIAL ACCOUNTING CHAPTER 3 & 4 TEST
EXAM QUESTIONS WITH 100% COMPLETE AND CORRECT
ANSWERS |A+ GRADE
The accounting principle that requires the matching of revenues and expenses is called the:
-✔ matching principle
The expense associated with the decrease in economic usefulness of a fixed asset with the
passage of time is:
-✔ Depreciation
Accumulated depreciation accounts that are "offset against" fixed asset accounts are:
-✔ Contra-Assets
The adjusting entry to record the cost of supplies used during the period requires a:
-✔ debit to supplies expense and credit to supplies
Adjusting for salaries accrued at the end of the period requires a:
-✔ debit to salaries expense and a credit to salaries payable
Adjusting for depreciation of equipment at the end of the period requires a:
-✔ debit to depreciation expense and a credit to accumulated depreciation-equipment
To adjust for fees collected in advance and now earned requires a:
-✔ debit to unearned revenue and a credit to fees earned
, FINANCIAL ACCOUNTING CHAPTER 3 & 4 TEST
EXAM QUESTIONS WITH 100% COMPLETE AND CORRECT
ANSWERS |A+ GRADE
If the unearned rent account has a balance of $9,000, representing receipt of three months' rent
beginning on October 1, the rent revenue for October is
-✔ $3,000
The net income reported on the income statement is $65,000. However, the accountant forgot to
make an adjusting entry to record the expired insurance of $10,000. Net income, as corrected, is:
-✔ $55,000
If the balance in the supplies account on January 1 is $20,500, supplies purchased during the year
were $17,500, and the supplies on hand at December 31 were $8,500, the amount for the
appropriate adjusting entry at December 31 is:
-✔ $29,500
If the prepaid insurance account has a debit balance of $17,600 at the end of the month, before
adjustment, and if the unexpired insurance at the end of the month was $10,500, the amount of
prepaid insurance that would appear on the balance sheet, after adjustment, is:
-✔ $10,500
If the adjusting entry for supplies used is not recorded at the end of a year, which of the
following is true?
-✔ assets will be understated
The net income reported on the income statement is $65,000. However, the accountant forgot to
make the adjusting entry to record depreciation expense of $15,000. Net income, as corrected, is:
-✔ $50,000
EXAM QUESTIONS WITH 100% COMPLETE AND CORRECT
ANSWERS |A+ GRADE
The accounting principle that requires the matching of revenues and expenses is called the:
-✔ matching principle
The expense associated with the decrease in economic usefulness of a fixed asset with the
passage of time is:
-✔ Depreciation
Accumulated depreciation accounts that are "offset against" fixed asset accounts are:
-✔ Contra-Assets
The adjusting entry to record the cost of supplies used during the period requires a:
-✔ debit to supplies expense and credit to supplies
Adjusting for salaries accrued at the end of the period requires a:
-✔ debit to salaries expense and a credit to salaries payable
Adjusting for depreciation of equipment at the end of the period requires a:
-✔ debit to depreciation expense and a credit to accumulated depreciation-equipment
To adjust for fees collected in advance and now earned requires a:
-✔ debit to unearned revenue and a credit to fees earned
, FINANCIAL ACCOUNTING CHAPTER 3 & 4 TEST
EXAM QUESTIONS WITH 100% COMPLETE AND CORRECT
ANSWERS |A+ GRADE
If the unearned rent account has a balance of $9,000, representing receipt of three months' rent
beginning on October 1, the rent revenue for October is
-✔ $3,000
The net income reported on the income statement is $65,000. However, the accountant forgot to
make an adjusting entry to record the expired insurance of $10,000. Net income, as corrected, is:
-✔ $55,000
If the balance in the supplies account on January 1 is $20,500, supplies purchased during the year
were $17,500, and the supplies on hand at December 31 were $8,500, the amount for the
appropriate adjusting entry at December 31 is:
-✔ $29,500
If the prepaid insurance account has a debit balance of $17,600 at the end of the month, before
adjustment, and if the unexpired insurance at the end of the month was $10,500, the amount of
prepaid insurance that would appear on the balance sheet, after adjustment, is:
-✔ $10,500
If the adjusting entry for supplies used is not recorded at the end of a year, which of the
following is true?
-✔ assets will be understated
The net income reported on the income statement is $65,000. However, the accountant forgot to
make the adjusting entry to record depreciation expense of $15,000. Net income, as corrected, is:
-✔ $50,000
