Reference no: EM133003596

Problem 1: With respect to Vehicles, its book value

a. exactly reflects the market value of the equipment.

b. is calculated by adding the amount of depreciation already recorded to the original cost of the vehicle.

c. represents the cost of the instruction manual for the vehicle.

d. is calculated by subtracting the Accumulated Depreciation account from the Vehicles account.

Problem 2: Which of the following statements about adjusting entries is correct?

a. An adjusting entry for deferred expenses includes a credit to an expense and a debit to an asset.

b. An adjusting entry for deferred revenues includes a credit to a liability and a debit to revenues.

c. An adjusting entry for accrued expenses includes a debit to an expense and a credit to an asset.

d. An adjusting entry for accrued revenues includes a debit to an asset and a credit to revenues.

Problem 3: When are closing entries typically performed?

a. When the cash is received

b. When the transaction occurred

c. At the end of the accounting period

d. At the beginning of the accounting period