Test 3 - Chapters 3/4 B

Question 1 of 10

Medal-premium 1

If prepaid costs are initially recorded as an asset, no adjusting entries will be required in the future

Select one of the following:

  • True
  • False

Question 2 of 10

Medal-premium 1

A liability-revenue account relationship exists with an unearned rent revenue adjusting entry

Select one of the following:

  • True
  • False

Question 3 of 10

Medal-premium 1

Unearned revenue is a prepayment that requires an adjusting entry when services are performed

Select one of the following:

  • True
  • False

Question 4 of 10

Medal-premium 1

The adjusting entry at the end of the period to record an expired cost may be different depending on whether the cost was initially recorded as an asset or expense

Select one of the following:

  • True
  • False

Question 5 of 10

Medal-premium 1

UNDER ORIGINAL METHOD
Revenue received before it is earned and expenses paid before being used or consumed are both initially recorded as liabilities

Select one of the following:

  • True
  • False

Question 6 of 10

Medal-premium 1

UNDER ORIGINAL METHOD
An adjusting entry always requires an Income Statement account and a Balance Sheet account

Select one of the following:

  • True
  • False

Question 7 of 10

Medal-premium 1

UNDER ORIGINAL METHOD
Asset prepayments become expenses when they expire

Select one of the following:

  • True
  • False

Question 8 of 10

Medal-premium 1

UNDER ALTERNATE METHOD
Revenue received before it is earned and expenses paid before being used or consumed are both initially recorded as liabilities

Select one of the following:

  • True
  • False

Question 9 of 10

Medal-premium 1

UNDER ALTERNATE METHOD
An adjusting entry always involved an Income Statement account and a Balance Sheet Account

Select one of the following:

  • True
  • False

Question 10 of 10

Medal-premium 1

Asset prepayments become expenses when they expire

Select one of the following:

  • True
  • False
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Test 3 - Chapters 3/4 B

Claudia Voin
Quiz by , created over 1 year ago

Grade 12 Accounting Midterm Prep

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Claudia Voin
Created by Claudia Voin over 1 year ago
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