7. Which of the following statements is correct? Prepaid Expenses are decreased

Question

7. Which of the following statements is correct? Prepaid Expenses are decreased with a debit b. a. Unearned Revenue is increased with a debit Salaries Payable is increased with a credit d. c. Rent Expense is increased with a credit 8. The adjusted trial balance is prepared a. After adjusting entries have been journalized and posted b. After the financial statements is prepared c. Before the trial balance d. To prove the equality of total assets and total liabilities 9. Which account is used solely for dlosing entries? a. Accumulated Depreciation b. Accounts Receivable c. Income Summary d. Cost of Goods Sold 10. A list of accounts and their balances at a given time is called a(n) a. Posting b. Income statement c. Trial balance d. Journal 11. What account does not appear on a post- closing trial balance? a. Accumulated Depreciation b. Unearned Revenue c. Capital d. Service Revenue 12. A revenue account: a. Is increased by credits b. Is increased by debits c. Has a normal balance of a debit d. Is decreased by credits

Explanation / Answer

7. option c. is correct

since salary payable is a liability account, it is increased with a credit.

8. option a. is correct

adjusted trial balance is prepared after posting adjusting entries

9. option c. is correct

all expenses and revenues are closed to income summary account

10. option c. trail balance is correct

11. option d . service revenue account since all income accounts closed to income summary account after posting closing entries it becomes 0.

12. option a. is correct

revenue acccount increases with credit.

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