Adjusting Entries MCQs 2

1. The correction of record of a transaction which either has not been recorded or has been recorded in incomplete or wrong way is called:

Adjustments

Closing of Accounts

Trial Balance

Balance Sheet

2. Entries made at the end of the accounting period to correct and update the record of business transactions are called:

Rectifying entries

Closing entries

Reversing entries

Adjusting entries

3. Adjusting entries are made:

At the beginning of the year

At the end of the year

During the year

All of these

4. Expenses against which goods or services have been received but payment has not been made are called:

Prepaid expenses

Deferred expenses

Outstanding expenses

Advance expenses

5. Outstanding expenses are also known as:

Prepaid expenses

Accrued expenses

Expenses payable

Both 1 and 2

6. Treatment of outstanding expenses in trading and profit and loss account is:

Added in respective A/c

Minus from Respective A/c

Both of these

None of these

7. Outstanding expenses are recorded in balance sheet as:

Asset

Liability

Intangible asset

Owner’s equity

8. Outstanding expenses are:

Current Liability

Fixed Liability

Contingent Liability

None of these

9. Expenses whose benefit has not been received but payment has been made are called:

Prepaid expenses

Accrued expenses

Outstanding expenses

Payable expenses

10. Prepaid expenses are also called:

Advance expenses

Deferred expenses

Unexpired expenses

All of these

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