Exam 2 (Chapters 7 &8) Fall 2017 Version B Name Select the ONE BEST response to

Question

Exam 2 (Chapters 7 &8) Fall 2017 Version B Name Select the ONE BEST response to each of the following multiple choice questions (3 points eachy. 1) A record of all accounts, showing account activity and cumulative balances is maintained in the: A) general ledger B) trial balance C) general journal D) financial statements 2) Financial statements are prepared using information from: A) Subsidiary Ledgers Unadjusted Trial Balance C) Adjusted Trial Balance D) Post-closing Trial Balance 3) The fact that a trial balance is in balance: A) guarantees that correct accounts have been debited and credited B) assures the preparer that all journal entries were made C) proves the equality of debits and credits D) all of the above are correct 4) On November 4, 2010, Blazek, Inc. received $24,000 in advance for work to be performed over the next several months. By December 31, 2010, 1/3 of the amount had been earned. The required adjusting entry would b 8,000 A) Accounts Receivable Service Revenue 8,000 B) 24,000 Cash 24,000 Unearned Revenue 8,000 Unearned Revenue 8,000 Service Revenue 16,000 16,000 D) Unearned Revenue Service Revenue 5) An example of a permanent account is the: A) utilities expense account B) depreciation expense account C) service revenue account D) salaries payable

Explanation / Answer

1) Answer (A) Genaral Ledger

2) Answer (C) Adjusted trial balance

3) Answer (D) All of the above

4) Answer (C) Unearned revenue debit $8,000 & Service revenue Credit $8,000

5) Answer (D) Salaries Payable

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