← Adjusting Process Test
3 Written Questions
2 Multiple Choice Questions
- Debited - Liability
Credit - Revenue.
- No adjusting entry debits or credits cash at bank because the cash transaction are recored at other times.
2 True/False Questions
The adjusting process has two purpose: → 1. Measure business profit(revenue and expenses) in the income statement accurately.
2. Update the balance sheet accounts(assets and liabilities).
Prepaid expense. → Debited - Expense.
Credit - Liability