FAR — Financial Accounting & Reporting — Quiz 12

Questions in this quiz (10)

1. Which account is credited when recording an accrued expense?

   • Expense
   • Cash
   • Accrued liability
   • Revenue

2. Deferred revenue is classified as which type of account?

   • Asset
   • Liability
   • Expense
   • Equity

3. Which adjusting entry recognizes the expiration of prepaid rent?

   • Debit Prepaid Rent; Credit Rent Expense
   • Debit Rent Expense; Credit Prepaid Rent
   • Debit Cash; Credit Rent Expense
   • Debit Rent Expense; Credit Cash

4. Which account is commonly used when recording accrued payroll?

   • Salaries payable
   • Accounts receivable
   • Prepaid salaries
   • Unearned revenue

5. Which entry recognizes revenue earned from previously deferred revenue?

   • Debit Cash; Credit Revenue
   • Debit Unearned Revenue; Credit Revenue
   • Debit Revenue; Credit Unearned Revenue
   • Debit Expense; Credit Revenue

6. Which accounting procedure ensures financial statements reflect correct period balances?

   • Posting
   • Adjusting entries
   • Closing entries
   • Journalizing

7. Amortization expense represents which type of adjustment?

   • Accrued expense
   • Allocation of intangible asset cost
   • Deferred revenue
   • Revenue recognition

8. Which financial statement is directly impacted by depreciation expense?

   • Statement of cash flows
   • Income statement
   • Statement of retained earnings
   • Statement of equity

9. Which account is credited when recording amortization expense?

   • Accumulated amortization
   • Cash
   • Intangible asset
   • Revenue

10. Accumulated amortization is classified as which type of account?

    • Asset
    • Contra asset
    • Liability
    • Expense