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Please answer the questions below

QUESTION 1

Which of the following is the correct reversing entry?

		Depreciation Expense 1550 Accumulated Depreciation 1550
		Interest Revenue 2350 Interest Receivable 2350
		Salary Expense 1980 Salary Payable 1980
		Income Tax Expense 2500 Income Tax Payable 2500

QUESTION 2

Prior to preparing the organization's financial statements, the accountant prepares

		a balance sheet
		a post-closing trial balance
		an adjusted trial balance
		a closed trial balance

QUESTION 3

On April 1, 2014, Miller Company paid $6,280 for a two-year insurance policy. On that date, the company charged an asset account. The correct December 31, 2014, adjusting entry would be

		Prepaid Insurance 3,140 Insurance Expense 3,140
		Insurance Expense 2,355 Prepaid Insurance 2,355
		Prepaid Insurance 2,355 Insurance Expense 2,355
		Insurance Expense 3,925 Prepaid Insurance 3,925

QUESTION 4

Which of the following rules is incorrect?

		The accounting equation must always remain in balance.
		Asset accounts are increased by debit entries and decreased by credit entries.
		Expense accounts normally have debit balances.
		Common stock accounts are increased by debit entries and decreased by credit entries.

QUESTION 5

Which of the following is a permanent account?

		Dividend Revenue
		Allowance for Doubtful Accounts
		Interest Expense
		Sales Revenue

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