The questions for week 2 is as below:

1. Where does the prepaid rent expenses belong to before it is incurred?
a) Asset    b) Liability    c) Equity  d) Expenses

Answer: A
Explanation
a) Correct!
b) Liabilities will not be affected in this case.
c) Equity will not be affected in this case.
d) It will only be written off as expenses when it is actually incurred.

2. We should always indent the debiting accounts when we record the journal entries

Answer : False
Explanation : We should indent the crediting accounts, not the debit ones. 

3. What accounts are affected when you pay wages that were already recognized?  a) Wage expense b) Wage Payable c) Cash d) Accounts Payable

Answer: B, C
Explanation (a) : Since it was already recognized previously, you should not double record it again. 
Explanation (b) : Correct!
Explanation (c) : Correct!
Explanation (d) : Accounts payable is not affected by such entries. 

+4. What account will never be affected when you do an adjusting entry? 
a) Prepaid Expenses   b) Account Payables   c) Cash   d) Account Receivables

Answer: C
Explanation (a): We may record it as part of the adjusting entry when we recognise the expenses for the period. 
Explanation (b): We may record it as part of the adjusting entry when we recognise the expenses for the period of time.
Explanation (c): Correct!
Explanation (d): We may record it as part of the adjusting entry when we recognise the work done up till that period of time.

+5. When we close the books, we only reset expenses to 0 

Answer : False
Explanation: Other temporary accounts like revenue and dividends will be closed to 0 too.

6. We purchased a car this year using note payable and cash at X ($6,000-$10,000). Paying Y ($2,000-$5,000) in cash, how much will the note payable be? 

Answer : X - Y
Explanation: After the cash payment, the remaining amount will be incurred as note payable. 

+7. The total wages to be given to the employees is X ($10,000-$20,000). The wages payable incurred previously in the adjusting entry is Y ($5,000-$10,000). How much will the cash amount be to pay off all the wages?

Answer: X
Explanation: The cash amount will still be the total amount of wages incurred as the cash account is never affected by the adjusting entry.

+8. The total utilities bill to be paid is X ($15,000-$20,000). The utilities payable incurred previously in the adjusting entry is Y ($5,000-$8,000). How much will the utilities expenses be in this journal entry?

Answer: X - Y
Explanation: Since part of the utilities expenses are already incurred during the adjusting entry, only the remaining amount from the total utilities bill will be recognized as the utilities expenses.

+9. The total rent to be paid to the tenant is X ($10,000-$18,000). The rent expense incurred previously in the adjusting entry is Y ($5,000-$9,000). How much will the rent payable be in this journal entry?

Answer: Y
Explanation: Since part of the rent expense is recognized in the adjusting entry, the rent payable will have the equal amount. 

+10. There is only three ways to do expense matching. 

Answer : True
Explanation: The three ways of expense matching is directly, indirectly and with acquisition. 

11. Prepaid expense is a form of accrued expenses.

Answer : False
Explanation: Prepaid expense is a form of deferral.

+12. Declining balance method will incur depreciation at an increasing amount until fully depreciated. 

Answer: False
Explanation: There will be a larger depreciation incurred earlier on. The amount will gradually decline each time.