Quiz: Solid Footing Chapter 9 Pg 1 Name: ______________________________ ? Print

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Quiz: Solid Footing Chapter 9 Pg 1

Name: ______________________________

? Print your name above.

? Print your name on the Multiple Choice Answer Form

For each of the questions below – circle the best answer to the question – then place your answer on the Multiple Choice Answer Form. Only the answer on the Multiple Choice Answer Form will be counted for grading purposes.

Use the information given in the chart on Page 2 to answer questions 1 to 5

1. Look at the “before” and “after” words for Account Category: Property, Plant, & Equipment, and select the correct statement below:

A. All of the “before” and “after” words are correct.

B. All of the “before” and “after” words are incorrect.

C. Some of the “before” and “after” words are correct and some of the “before” and “after” words are incorrect.

2. Look at the “before” and “after” words for Account Category: Prepaid Assets, and select the correct statement below:

A. All of the “before” and “after” words are correct.

B. All of the “before” and “after” words are incorrect.

C. Some of the “before” and “after” words are correct and some of the “before” and “after” words are incorrect.

3. Look at the “before” and “after” words for Account Category: Accrued Liabilities, and select the correct statement below:

A. All of the “before” and “after” words are correct.

B. All of the “before” and “after” words are incorrect.

C. Some of the “before” and “after” words are correct and some of the “before” and “after” words are incorrect.

4. Look at the “before” and “after” words for Account Category: Unearned Revenue Liabilities, and select the correct statement below:

A. All of the “before” and “after” words are correct.

B. All of the “before” and “after” words are incorrect.

C. Some of the “before” and “after” words are correct and some of the “before” and “after” words are incorrect.

5. Look at the “before” and “after” words for Account Category 5: Accrued Assets, and select the correct statement below:

A. All of the “before” and “after” words are correct.

B. All of the “before” and “after” words are incorrect.

C. Some of the “before” and “after” words are correct and some of the “before” and “after” words are incorrect.

Quiz: Solid Footing Chapter 9 Pg 2

Use the table below to answer questions 1 to 5 on Page 1

Chpt. 9 Quiz - Solid Footing (Compatibility Mode] - Word References Mailings Review O Tell me what you want to do. - 2 T AaBbcAaBbc AaBBCc AaBBCc AaBbcci Emphasis Heading 1 1 Normal Strong Subtitle Paragraph styles Account When is the Adjusting Entry made, and Category |Examples when does Cash Flow? | when is Revenue or Expense Recognized? Cash flows out Property, J“Equipment | — before the adj. entry Plant , & "Buildings | — before expense is Equipment recognized Adjusting entry is made after cash flows out “Expense is recognized after cash flows out Prepaid Assets "repai rent Supplies Cash flows out after the adj. entry after expense is recognized “Adjusting entry is made before cash flows out Expense is recognized before cash flows out Accrued Liabilities Wages payable interest payable Cash flows out: —after the adj. entry before expense is recognized Adjusting entry is made before cash flows out Expense is recognized after cash flows out Receive advance: Cash flows in: Unearned | Payment after the ad entry Revenue for services after revenue is Liabilities | Payment recognized for rent Adjusting entry is made before cash flows in "Revenue is recognized before cash flows in Accrued Assets Interest Cash flows in: receivable 1 after the adj. entry Unbilled after revenue is services recognized Adjusting entry is made before cash flows in Revenue is recognized before cash flows in [O A @ w)

Explanation / Answer

When property,plant and equipment are purchased ,cash flows goes out before any recordings.

Journal entry to record purchase of Property,Plant and Equipment

Property/Plant & Equipment A/C Dr

To Cash A/C

Property/Plant & Equipment are assets so these are debited and cash is getting reduced,so this is credited.

When prepaid expenses are made ,cash goes out before any recordings .

Prepaid Expense A/C Dr

To Expense A/C

Expense A/C Dr

   To outstanding expense A/C

Income A/C Dr

   To Unearned Income A/C

Accrued income A/C Dr

To Interest A/C

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