1. Prepaid Expenses are expense accounts. TRUE or FALSE
Unearned revenue is a revenue account. TRUE or FALSE
2. Which of the following is an expense that has not yet been paid in cash, but has been incurred or used.
A) Accrued expense.
B) Prepaid expense
C) Deferred expense
D) Both B and C.
3. Which of the following is expense that has not yet been used, but has already been paid in cash?
A) Accrued expense.
B) Prepaid expense
C) Deferred expense
D) Both B and C.
4. At the beginning of the month supplies were $5,000. During the month the company purchased $2,000 of supplies. At month's end, $3,000 of supplies were still on hand. What was the cost of supplies used during the month, (i.e, the amount of the supplies expense)?
A) $2,000.
B) $4,000.
C) $6,000.
D) $10,000.
5. A company incurs salary expense of $5,000 each week for a five-day work week. Employees are paid each Friday for that week. October 31, the last day of the accounting period, falls on a Wednesday. What amount would be debited to salary expense on October 31?
$_$3,000_
6. The entry to record depreciation expense would include:
A) debit to Accumulated Depreciation.
B) credit to Accumulated Depreciation
C) debit to Prepaid Expense
D) credit to Depreciation Expense.
7. Prepaid Insurance had a beginning balance of $1,800. At the end of the period it has a balance of $600. The adjusting entry at year end would include a:
A) credit to Insurance Expense of $1,200.
B) debit to Prepaid Insurance of $2,400.
C) debit to Insurance Expense of $2,400.
D) debit to Insurance Expense of $1,200.
8. Which adjusting entry is the allocati ...