1. Adjusting entries made at the finish of an accounting duration accomplish every one of the following except:
A. Update liability and asset account to their ideal balances.
You are watching: Adjusting entries made at the end of an accounting period accomplish all of the following except:
B. Assigning profits to the periods in which they space earned.
C. Assigning costs to the periods in which they room incurred.
D. Assuring that financial declaration reflect the revenues earned and also the costs incurred.
E. Assuring that exterior transaction quantities remain unchanged.
2. I m sorry of the following statements is incorrect?
A. Adjustments come prepaid expenses and unearned revenues involve formerly recorded assets and also liabilities.
B. Accrued expenses and accrued earnings involve assets and liabilities that had not formerly been recorded.
C. Adjusting entries can be offered to record both accrued expenses and accrued revenues.
D. Prepaid expenses, depreciation, and also unearned revenues regularly require adjusting entries to record the impacts of the passage of time.
E. Adjusting entries influence only balance sheet accounts.
3. Wilson company paid $4,800 because that a 4-month insurance allowance premium in breakthrough on November 1, through coverage start on the date. The balance in the prepaid insurance account before adjustment in ~ the end of the year is $4,800 and no adjustments had actually been make previously. The adjusting entry compelled on December 31 is:
A. Debit insurance money Expense, $2,400; credit Prepaid Insurance, $2,400.
B. Debit Prepaid Insurance, $2,400; credit Insurance Expense, $2,400.
C. Debit insurance allowance Expense, $1,200; credit Prepaid Insurance, $1,200.
D. Debit Prepaid Insurance, $1,200; credit Insurance Expense, $1,200.
E. Debit Cash, $4,800; credit Prepaid Insurance, $4,800.
4. I m sorry of the complying with statements is incorrect?
A. One unadjusted attempt balance is a perform of accounts and balances prepared prior to adjustments space recorded.
B. An readjusted trial balance is a perform of accounts and balances ready after adjusting entries have actually been recorded and posted come the ledger.
C. Each trial balance quantity is used in preparing the gaue won statements.
D. Financial statements should be prepared directly from details in the unadjusted trial balance.
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E. Gaue won statements deserve to be prepared straight from info in the changed trial balance.
5. On December 31, winters Company's Prepaid rental account had a balance prior to adjustment the $6,000. Three months' rent to be paid in advance on December 1, the very first day of the lease term. The adjusting entry necessary on December 31 is: