Question: Adjusting entries can be classified as
A
Postponements and advances
B
Accruals and deferrals
C
Deferrals and postponements
D
Accruals and advances
2 Question: Daly Investments purchased an 18-month insurance policy on May 31, 2010 for $3,600. The December 31, 2010 balance sheet would report Prepaid Insurance of
A
$0 because Prepaid Insurance is reported on the Income Statement
B
$1,400
C
$2,200
D
$3,600
3 Question: Daly Investments purchased an 18-month insurance policy on May 31, 2010 for $3,600. The December 31, 2010 balance sheet would report Prepaid Insurance of
A
$0 because Prepaid Insurance is reported on the Income Statement
B
$1,400
C
$2,200
D
$3,600
4 Question: Southwestern City College sold season tickets for the 2010 football season for $160,000. A total of 8 games will be played during September, October and November. Assuming all the games are played, the Unearned Revenue balance that will be reported on the December 31 balance sheet will be
A
$0
B
$60,000
C
$100,000
D
$160,000
5 Question: The operating cycle of a company is the average time that is required to go from cash to
A
Sales in producing revenues
B
Cash in producing revenues
C
Inventory in producing revenues
D
Accounts receivable in producing revenues
