21) With an accrual of revenue:
A) the cash is received after the revenue is recorded.
B) the cash is paid before the expense is recorded.
C) plant assets can create an accrual adjustment.
D) prepaid expenses can create an accrual adjustment.
22) When an adjustment is made for prepaid rent:
A) an asset increases and an expense decreases.
B) one asset increases and another decreases.
C) an asset decreases and an expense increases.
D) a liability decreases and an expense decreases.
23) Which account is credited in the adjusting entry to allocate the cost of equipment to an expense account?
A) Equipment Expense
B) Depreciation Expense
C) Accumulated Equipment
D) Accumulated Depreciation
24) Which accounts are used in the adjusting entry to record salaries owed to employees, but not paid until the next accounting period?
A) Salaries Expense and Salaries Payable
B) Unearned Salaries and Salaries Payable
C) Salaries Payable and Deferred Salaries Expense
D) Deferred Salaries Payable and Salaries Receivable
25) At the end of the accounting period, a company has accrued interest revenue that they will not receive until the next accounting period. The adjusting entry would include a:
A) debit to Interest Expense.
B) debit to Interest Payable.
C) debit to Interest Revenue.
D) debit to Interest Receivable.
26) The Houston Mavericks basketball team receives $5,000 for season tickets on August 1. By December 31, they have earned $2,000 of the revenue. The adjusting entry to be made on December 31 by the Houston Mavericks includes a:
A) credit to Unearned Revenue of $2,000.
B) debit to Unearned Revenue of $2,000.
C) debit to Ticket Revenue of $2,000.
D) credit to Prepaid Revenue of $3,000.
27) On December 31, 2014, salaries owed to employees total $4,150. These will be paid on January 4, 2015. An adjusted trial balance prepared on December 31, 2014, includes which of the following?
A) Salaries Expense, $4,150 and Salaries Payable, $4,150
B) Salaries Payable, $4,150 and Unearned Salaries Revenue, $4,150
C) Unearned Salaries, $4,150
D) Unearned Salaries, $4,150 and Salaries Payable, $4,150
28) The Accumulated Depreciation account:
A) is another term for depreciation expense.
B) represents the original cost of a plant asset.
C) is a contra asset account.
D) has a normal balance which is the same as its companion account.
29) A journal entry contains a debit to a liability account and a credit to a revenue account. This is an example of a(n):
A) accrued expense.
B) deferred expense.
C) unearned revenue.
D) accrued revenue.
30) An adjusting journal entry contains a debit to an expense account and a credit to a contra account. This is an example of what type of adjusting entry?
A) Accrued revenue
B) Deferred revenue
C) Depreciation expense
D) Accrued expense