Adjusting entries are:

Adjusting entries are:  

        not necessary if the accounting system is operating properly.

        usually required before financial statements are prepared.

        made whenever management desires to change an account balance.

        made to balance sheet accounts only

Assets normally show 

        credit balances.

        debit balances.

        debit and credit balances.

        debit or credit balances.

If an individual asset is increased, then 

        there could be an equal decrease in a specific liability.

        there could be an equal decrease in stockholders' equity.

        there could be an equal decrease in another asset.

        none of these is possible.

During January 2012, Carey Services Inc. paid a cash dividends of $2,000. This transaction  

        reduces stockholders' equity by $2,000.

        increases stockholders' equity by $2,000.

        reduces net income by $2,000.

        increases expenses by $2,000.

In the first month of operations, the total of the debit entries to the Cash account amounted to $1,200 and the total of the credit entries to the Cash account amounted to $800. The Cash account has a 

        $800 credit balance.

        $400 debit balance.        

        $1,200 debit balance.

        $400 credit balance.

La More Company had the following transactions during 2011:

•     Sales of $4,500 on account

•     Collected $2,000 for services to be performed in 2012

•     Paid $1,125 cash in salaries

•     Purchased airline tickets for $250 in December for a trip to take place in 2012

What is La More's 2011 net income using cash basis accounting? 

        $5,375

        $875

        $5,125

        $625     

Adjusting entries are: 

        not necessary if the accounting system is operating properly.

        usually required before financial statements are prepared.

        made whenever management desires to change an account balance.

        made to balance sheet accounts only.

On June 1, 2012, England Inc. reported a cash balance of $18,000. During June, England made deposits of $8,000 and made disbursements totaling $24,000. What is the cash balance at the end of June?

        $2,000 credit balance.

        $26,000 debit balance.

        $2,000 debit balance.   

        $6,000 credit balance.

Given the following adjusted trial balance:

              Debit       Credit

Cash$781 

Accounts receivable1,049 

Inventory1,562 

Prepaid rent43 

Property, plant & equipment150 

Accumulated depreciation26 

Accounts payable41 

Unearned revenue61 

Common stock103 

Retained earnings 3,305 

Service revenue134 

Interest revenue28 

Salary expense80 

Travel expense 33            _____ 

     Total $3,698$3,698 

After closing entries have been posted, the balance in retained earnings will be:

        $3,256

        $3,170

        $3,440

        $3,354