1. Adjusting entries area. not necessary if the accounting system is operating properly. b. usually required before financial statements are prepared.c. made whenever management desires to change an account balance.d. made to balance sheet accounts only.2. Faraway Beltway Company pays weekly salaries for a 5-day week of $2000 every Friday January 31 falls on a Thursday. The monthly adjusting entry at January 31a. should pay salaries of $1600.b. should accrue salaries of $400.c. should accrue salaries of $1600.d. should record unearned salaries of $400.3. On January 1 the Seigel-Jones Law Firm received a $12000 cash retainer for legal services tobe rendered ratably over the next 6 months. The full amount was credited to the liabilityaccount Unearned Legal Fees. Which of the following statements is true regarding adjustingentries for this liability accounta. the adjusting journal entry at the end of each month should include a debit to UnearnedLegal Fees and a credit to Fees Earned for $2000.b. the adjusting journal entry at the end of each month should include a debit to UnearnedLegal Fees and a credit to Cash for $2000.c. the adjusting journal entry at the end of January should include a debit to Unearned LegalFees and a credit to Fees Earned for $12000.d. No adjusting entries should be made until the full amount of the retainer has been earnedas of June 30. 4. Adjusting entries can be classified as a. postponements and advances. b. accruals and prepayments. c. prepayments and postponements. d. accruals and advances.
