1. Which account will have azero balance after closing entries have been journalized andposted?

a. Service revenue.

b. Advertising Supplies.

c. Prepaid Insurance.

d. Accumulated Depreciation.

2. The revenue recognition principledictates that revenue should be recognized in the accountingrecords

a. when cash is received.

b. when it is earned.

c. at the end of the month.

d. in the period that income taxes are paid.

3. Which principle dictates thatefforts (expenses) be recorded with accomplishments (revenues)?

a. Cost principle.

b. Periodicity principle.

c. Revenue recognition principle.

d. Matching principle.

4. A furniture factory'semployees work overtime to finish an order that is sold on January31. The office sends a statement to the customer in earlyFebruary and payment is received by mid-February. The overtimewages should be expensed in

a. January.

b. February.

c. the period when the workers receive theirchecks.

d. either January or February depending on when the payperiod ends

5. Adjusting entries are made toensure that:

a. expense are recognized in the period in which theyare incurred.

b. revenues are recorded in the period in which theyare earned.

c. balance sheet and income statement accounts havecorrect balances at the end of an accounting period.

d. All of the above

6. Unearned revenue isclassified as a(n)

a. asset.

b. revenue.

c. contra revenue.

d. liability.

Answer rating: 100% (QA)

Answer 1 d Accumulated Depreciation 2 b when it is earned 3 d Matching principle 4 a January 5 d All ... View the full answer