Reference no: EM132380545

Question

several accounting based questions.

1. Which account needs an adjustment at the end of the period? a) note payable b) equipment c) unearned revenue d) cash

2. What is the account classification and normal balance of equipment? a) asset, credit b) asset, debit c) expense, debit d) expense, credit

3. According to the expense recognition principle, a) expenses are recorded in the period they are actually used. b) expenses are recognized when cash is paid. c) current revenues are subtracted from the current expenses to determine net income d) both a and c are true

4. Which of the following is a contra asset account? a) common stock b) salary expense c) accumulated depreciation d) retained earnings

5. Which asset does not depreciate? a) equipment b) land c) buildings d) office furniture

6. The prepaid insurance account has an $8000 beginning balance. additional insurance premiums in the amount of $12000 were paid during the year. at year-end, there is $3000 of insurance coverage remaining. the entry needed to adjust the account is?

7. Accounting services X agreed to perform services for a client at a rate of $4000 per month. a six month prepayment was made in advance on oct 1, 2019 and services began on that date. dec 31, 2019 is the end of X's accounting year. what is the oct 1, 2019 entry to record the prepayment?

8. Refer to question 7. what is the entry to make the necessary adjustment on december 31, 2019? ( accounting service X adjusts their books only at the end of the year.)