Accounting Midterm Review: Adjusting
Entries, Principles, and Financial Statements
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
What is the format of the midterm exam? - Correct answers✔✔The exam consists of 50 multiple
choice questions.
What is the time limit for completing the midterm exam? - Correct answers✔✔You have 90
minutes to complete the exam.
What browser must be used to take the midterm exam? - Correct answers✔✔You must use the
respondent's web browser.
What happens if you use unauthorized devices during the exam? - Correct answers✔✔Using
unauthorized devices is considered cheating and results in a score of zero.
What is the recommended time to start the exam? - Correct answers✔✔You should sign on early
enough to complete the exam before 9 p.m.
What type of exam is the midterm? - Correct answers✔✔It is a closed book exam.
What are the four types of adjusting entries? - Correct answers✔✔Prepaid expenses, accrued
revenues, unearned revenues, and accrued expenses.
What is a prepaid expense? - Correct answers✔✔An amount paid in advance that will be
recognized as an expense in the future.
, What is accrued revenue? - Correct answers✔✔Revenue that has been earned but not yet billed
or recorded in accounts receivable.
What is unearned revenue? - Correct answers✔✔Cash received for services not yet performed,
classified as a liability.
What is an accrued expense? - Correct answers✔✔Expenses that have been incurred but not yet
recorded in the accounting records.
What does the matching concept state? - Correct answers✔✔Expenses related to revenue must
be reported at the same time revenue is reported.
What is the accounting equation? - Correct answers✔✔Assets = Liabilities + Equity.
What is the normal sign for assets? - Correct answers✔✔The normal sign for assets is a debit.
What does a debit signify in accounting? - Correct answers✔✔A debit signifies an increase in
assets, expenses, and dividends.
What does a credit signify in accounting? - Correct answers✔✔A credit signifies an increase in
liabilities, equity, and revenue.
What is the consequence of not matching revenue and expenses? - Correct answers✔✔It can
distort the results of a company's operations.
Entries, Principles, and Financial Statements
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
What is the format of the midterm exam? - Correct answers✔✔The exam consists of 50 multiple
choice questions.
What is the time limit for completing the midterm exam? - Correct answers✔✔You have 90
minutes to complete the exam.
What browser must be used to take the midterm exam? - Correct answers✔✔You must use the
respondent's web browser.
What happens if you use unauthorized devices during the exam? - Correct answers✔✔Using
unauthorized devices is considered cheating and results in a score of zero.
What is the recommended time to start the exam? - Correct answers✔✔You should sign on early
enough to complete the exam before 9 p.m.
What type of exam is the midterm? - Correct answers✔✔It is a closed book exam.
What are the four types of adjusting entries? - Correct answers✔✔Prepaid expenses, accrued
revenues, unearned revenues, and accrued expenses.
What is a prepaid expense? - Correct answers✔✔An amount paid in advance that will be
recognized as an expense in the future.
, What is accrued revenue? - Correct answers✔✔Revenue that has been earned but not yet billed
or recorded in accounts receivable.
What is unearned revenue? - Correct answers✔✔Cash received for services not yet performed,
classified as a liability.
What is an accrued expense? - Correct answers✔✔Expenses that have been incurred but not yet
recorded in the accounting records.
What does the matching concept state? - Correct answers✔✔Expenses related to revenue must
be reported at the same time revenue is reported.
What is the accounting equation? - Correct answers✔✔Assets = Liabilities + Equity.
What is the normal sign for assets? - Correct answers✔✔The normal sign for assets is a debit.
What does a debit signify in accounting? - Correct answers✔✔A debit signifies an increase in
assets, expenses, and dividends.
What does a credit signify in accounting? - Correct answers✔✔A credit signifies an increase in
liabilities, equity, and revenue.
What is the consequence of not matching revenue and expenses? - Correct answers✔✔It can
distort the results of a company's operations.
