3.2 Understand the four types of adjustments and prepare adjusting entries
1) Adjusting entries are used to update accounts at the end of an accounting period.
2) Adjusting entries are made only for accrued revenues and accrued expenses.
3) An example of a contra-account would be accumulated depreciation.
4) Land must be adjusted for depreciation at the end of the period.
5) Unearned ticket revenue must be adjusted to show how much of the deferred revenue has been earned during the period.
6) The supplies account must be adjusted to reflect how many supplies were used during the period.
7) The type of accounting required by IFRS is:
A) modified cash.
B) hybrid cash.
C) cash.
D) accrual.
E) international cash
8) It is necessary to post:
A) asset and liability entries.
B) revenue and expense entries.
C) adjusting entries.
D) all journal entries.
E) only retained earning entries
9) At the end of the period, which is prepared first?
A) Income statement
B) Balance sheet
C) Adjusting entries
D) Unadjusted trial balance
E) Retained earnings statement
10) Which of the following accounts would be adjusted?
A) Cash
B) Depreciation Expense
C) Land
D) Notes Payable
E) Petty Cash