Accounting Adjusting Entries and Accruals Quiz
Test your knowledge on accrual accounting with 15 questions covering adjusting entries, financial statements, and more!
#1
Which financial statement reflects a company's financial position at a specific point in time?
Income Statement
Balance Sheet
Cash Flow Statement
Statement of Retained Earnings
#2
Which financial statement reports the revenues and expenses over a specific period of time?
Balance Sheet
Cash Flow Statement
Income Statement
Statement of Retained Earnings
#3
What is the purpose of the adjusting entry for accrued revenue?
To recognize revenue that has been received but not yet earned
To record revenue that has been earned but not yet received
To adjust accounts for accruals
To close temporary accounts at the end of the period
#4
Which type of adjusting entry involves recognizing an expense that has been incurred but not yet paid?
Accrued Expense
Prepaid Expense
Unearned Revenue
Accumulated Depreciation
#5
What is the purpose of the adjusting entry for prepaid expenses?
To recognize expenses that have been paid but not yet incurred
To record expenses that have been incurred but not yet paid
To adjust accounts for accruals
To close temporary accounts at the end of the period
#6
What is the purpose of adjusting entries in accounting?
To close the accounts at the end of the period
To record routine daily transactions
To update accounts for accruals and deferrals
To reconcile bank statements
#7
Which of the following is an example of an accrued expense?
Prepaid rent
Salaries payable
Unearned revenue
Accumulated depreciation
#8
What is the purpose of a contra account in accounting?
To decrease the value of a related account
To increase the value of a related account
To record routine daily transactions
To close the accounts at the end of the period
#9
Which financial statement shows the changes in equity over a specific period?
Balance Sheet
Cash Flow Statement
Income Statement
Statement of Retained Earnings
#10
Which type of account represents the accumulated profits of a corporation that are not distributed to shareholders?
Revenue
Expenses
Dividends
Retained Earnings
#11
What type of account is the Accumulated Depreciation?
Expense
Asset
Liability
Equity
#12
Which adjusting entry is made to record revenue that has been earned but not yet received?
Debit Cash, Credit Revenue
Debit Unearned Revenue, Credit Revenue
Debit Accounts Receivable, Credit Revenue
Debit Revenue, Credit Accounts Receivable
#13
What is the purpose of the closing entries in accounting?
To adjust accounts for accruals
To prepare financial statements
To record routine daily transactions
To close temporary accounts at the end of the period
#14
Which of the following is an example of a prepaid expense?
Salaries payable
Prepaid rent
Accumulated depreciation
Unearned revenue
#15
Which financial statement reports the cash inflows and outflows during a specific period?
Balance Sheet
Cash Flow Statement
Income Statement
Statement of Retained Earnings
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