BKAL1013 A171 TUTORIAL 2

PART A: 20 MULTIPLE CHOICE QUESTIONS

(TOPIC 4: COMPLETING THE ACCOUNTING CYCLE)

1. An account that still has balance after closing entries have been journalized and posted is:

A. Service Revenue
B. Advertising expense
A. Prepaid Insurance
B. Depreciation expense

2. Which types of accounts will appear in the post-closing trial balance?

A. Accrued expenses
B. Unearned revenue
C. Accumulated depreciation
D. All of the above

3. Which of the following is step related in completing the accounting cycle?

A. Source of document
B. Journal
C. Ledger
D. Adjusting trial balance
4. Adjusting entries are journal entries that required to be prepared ______________
A. at the end of accounting period to adjust the amount or balance of certain items or
accounts
B. at the beginning of accounting period to adjust the amount or balance of certain
items or accounts
C. in the middle of accounting period to adjust the amount or balance of certain
items or accounts
D. after every transaction of accounting period to adjust the amount or balance of
certain items or accounts
5. If the supplies account, before adjustment on 30 June indicated a balance of RM2,500
and supplies on hand at 30 June totaled RM890, the adjusting entry would be:
A. Debit supplies expense RM890, and credit supplies RM890
B. Debit supplies RM890, and credit supplies expense RM890
C. Debit supplies, RM1,610, and credit supplies expense RM1,610
D. Debit supplies expense RM1,610, and credit supplies RM1,610

6. If the equipment account has a balance of RM24,500 and its accumulated depreciation
account has a balance of RM12,500, the book value of the equipment would be:
A. RM12,000
B. RM37,000
C. RM24,500
BKAL1013 A171 TUTORIAL 2

D. RM12,500

7. Which of the following accounts would be classified as a current asset on the balance
sheet?
A. Accumulated depreciation
B. Land
C. Accounts receivable
D. Office equipment

8. Which of the following accounts would not be included in a post-closing trial balance?
A. Owners equity
B. Accumulated depreciation
C. Cash
D. Fees earned

9. Which of the following accounts in the Adjusted Trial Balance columns of the end-of-
period work sheet would be extended to the Balance Sheet columns?
A. Miscellaneous expense
B. Drawing
C. Rent revenue
D. Utilities expense

10. Which of the following entries closes the owners drawing account at the end of the
period?
A. Debit the income summary account, credit the drawing account
B. Debit the drawing account, credit the income summary account
C. Debit the owners capital account, credit the drawing account
D. Debit the drawing account, credit the owners capital account

11. Which of the following accounts would not be closed to the income summary account at
the end of a period?
A. Wages expense
B. Rent expense
C. Fees earned
D. Accumulated depreciation

12. If the estimated amount of depreciation on equipment for a period is RM3,500, the
adjusting entry to record depreciation would be:
A. Debit depreciation expense RM3,500 and credit accumulated depreciation
RM3,500
B. Debit depreciation expense RM3,500 and credit equipment RM3,500
C. Debit accumulated depreciation RM3,500 and credit depreciation expense
RM3,500
D. Debit equipment RM3,500 and credit depreciation expense RM3,500

13. An accumulated depreciation of building is an example of ________________________.

BKAL1013 A171 TUTORIAL 2

A. An asset account in a statement of financial position

B. A contra account to an asset in a statement of financial position
C. An expenses account in a profit/loss account or statement of comprehensive income
D. A revenue account in a profit/loss account or statement of comprehensive income
14. The following accounts appear in the Statement of Financial Position EXCEPT:

A. Building Account
B. Fees Earned Account
C. Loan Account
D. Owners Equity Account

15. Adjusting entries are made to ensure that:

A. Expenses are recognized in the period in which they are incurred.

B. Revenues are recorded in the period in which they are earned.
C. Financial position statement and comprehensive income statement accounts have
correct balances at the end of an accounting period.
D. All of the above.

16. On 1st September 2017, AAN Enterprise purchased an insurance policy for theft, burglary
and fire by cash. The insurance expires on 31th August 2018. The journal entry on 1st
September would be:

A. Dt Prepaid Insurance Account

Cr Accounts Receivable
B. Dt Insurance Expense Account
Cr Accounts Receivable
C. Dt Cash Account
Cr Insurance Expense Account
D. Dt Prepaid Insurance Account
Cr Cash Account

17. On 1st August 2017, the beginning Cash Account balance of AAS Enterprise is amounted
to RM32,670. During the month of August the company has cash receipts of RM12,400,
and a closing balance of RM19,150 at the end of the month. Determine the cash payment
in the month of August.

A. RM20,270
B. RM25,920
C. RM13,520
D. RM31,550

18. In the normal accounting cycle, the:

BKAL1013 A171 TUTORIAL 2

A. Financial statements are prepared after the adjusting entries are posted
B. Financial statements are prepared before the adjusting entries are posted
C. Adjusting and closing entries are journalized before the financial statements are
prepared
D. Post-closing trial balance is prepared before the closing entries are posted

19. The post-closing trial balance will:

A. Be prepared before closing entries are posted to the ledger

B. Contain both comprehensive income statement and financial position statement
accounts
C. Contain only financial position statement accounts
D. Contain only comprehensive income statement accounts

20. Adjusting entries are required:

A. Because some costs expire with the passage of time and have not yet been
journalized
B. When the company's profits are below the budget
C. When expenses are recorded in the period in which they are incurred
D. When revenues are recorded in the period in which they are earned

PART B : STRUCTURED QUESTIONS

1. PR 3:1
2. PR 3:5
3. PR 3:9

END OF QUESTIONS