3.2   Questions

1) Adjusting entries are used to update accounts at the end of an accounting period.

2) An example of a contra-account would be Accumulated Depreciation.

3) Adjusting entries are made only for accrued revenues and accrued expenses.

4) Unearned Ticket Revenue must be adjusted to show how much of the deferred revenue has been earned during the period.

5) The Supplies account must be adjusted to reflect the supplies that were used during the period.

6) Land must be adjusted for depreciation at the end of the period.

7) Wages that have been accrued need to be recorded so that the matching principle is reflected in Wages Expense.

8) Adjusting entries are completed before the unadjusted trial balance is prepared.

9) The value of an asset after all allowable depreciation has been taken is called:

A) depreciable value.

B) market value.

C) salvage value.

D) trade-in value.

10) At the beginning of the period, the Supplies account has a balance of $500. At the end of the period, the balance in the account was $275. The adjusting entry would be:

A) debit Supplies Expense, $275; credit Supplies, $275.

B) debit Supplies, $275; credit Supplies Expense, $275.

C) debit Supplies Expense, $225; credit Supplies, $225.

D) debit Supplies, $225; credit Supplies Expense, $225.