Question

correct answer

6) To prepare the Trial Balance, select A) Company Center Company & Financials B) Reports Center Company & Financials C) Reports Center > Accountant & Taxes D) Company Center > Accountant & Taxes 7) Adjusting entries are used to: A) Close temporary accounts at year end B) Close permanent accounts at year-end C) Bring account balances up to date at year end D) All of the choices are correct 8) An accounting period may be: A) One quarter C) One month B) One year D) All of the choices are correct 9) Before making adjusting entries you should: A) Prepare a Trial Balance C) Prepare a balance sheet B) Close permanent accounts D) Close temporary accounts 10) Adjusting entries for accrued expenses typically include which of the following related types of accounts: A) Expense and Liability accounts B) Revenue and Liability accounts C) Revenue and Asset accounts D) Expense and Asset accounts 11) Adjusting entries should be made A) Never B) After preparing financial statements: C) During D) Before 12) To record adjusting journal entries in QuickBooks, select: A) Company section of the Home Page > Journal Entry icon B) Company Center > Journal Entry icon C) Banking section of the Home Page > Journal Entry icon D) Accountant Menu > Make General Journal Entries 13) Adjusting entries for prepaid items typically include which of the following related types of accounts: A) Expense and Asset accounts B) Revenue and Asset accounts C) Revenue and Liability accounts D) Expense and Liability accounts 14) Prepaid items for which adjusting entries may be necessary include all of the following except: A) Prepaid insurance C) Prepaid Rent B) Unearned Revenue D) Office Supplies

Answer 1

Answers

6. Reports centre - accounts and taxes

7. Adjusting entries are used to bring account balances up to date at year end

8. An accounting period may be a year, quarter or a month hence - all of the choices are correct

9. Before adjusting entries you should prepare a trial balance

10. Adjusting entries for accrued expenses would typically include expenses and liability accounts

11. Adjusting entries should be made during preparation of financial statements (though at the end of the process)

12. The correct path is accountant menu - general journal entries

13. adjusting entries for prepaid items would include asset and expense accounts

14. Prepaid items for which adjusting entries may be required would exclude unearned revenue as the same is a liability and not a prepaid