Question 1

Define the expression accrued salaries.

Accepted Answer

Accrued salaries represent salaries that have been earned but are unpaid and unrecorded in an accounting period (and will require an adjustment at the end of the period)and will be due for payment the following accounting period.

Question 2

If Prepaid Rent Expense for the period is NOT adjusted:

Accepted Answer

A) assets will be overstated and expenses will be overstated. 
B) assets will be overstated and expenses will be understated. 
C) assets will be understated and expenses will be overstated. 
D) revenue will be understated and expenses will be understated. 
A) assets will be overstated and expenses will be overstated. 
B) assets will be overstated and expenses will be understated. 
C) assets will be understated and expenses will be overstated. 
D) revenue will be understated and expenses will be understated. B

Question 3

Evans Golf Academy estimated depreciation on its building at $300.The adjusting entry for depreciation of the building would include:

Accepted Answer

A) a debit to Accumulated Depreciation for $300. 
B) a debit to Depreciation Expense for $300. 
C) a credit to Building for $300. 
D) a credit to Depreciation Expense for $300. 
A) a debit to Accumulated Depreciation for $300. 
B) a debit to Depreciation Expense for $300. 
C) a credit to Building for $300. 
D) a credit to Depreciation Expense for $300. B

Question 4

The debits do not equal credits on the adjusted trial balance columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 5

Revenue is recorded when earned,and expenses are recorded only when incurred.

Accepted Answer

A) True 
 B)False

Question 6

Rent expired at the end of an accounting period requires an adjustment.

Accepted Answer

A) True 
 B)False

Question 7

The adjustment for accrued wages included the entire pay period,some of which occurs next month.This would:

Accepted Answer

A) understate the liabilities. 
B) overstate the liabilities. 
C) overstate net income. 
D) None of these is correct. 
A) understate the liabilities. 
B) overstate the liabilities. 
C) overstate net income. 
D) None of these is correct.

Question 8

Equipment was purchased for $50,000,residual value is $2,000 and it is expected that the useful life is 10 years.What is the book value of the equipment after the first year assuming straight-line depreciation?
$ ________

Accepted Answer

$45,200 [$

Question 9

The Sarbanes-Oxley Act:

Accepted Answer

A) requires a minimum cash balance. 
B) does not allow adjusting entries. 
C) states the need to have accurate financial reports. 
D) does not allow the use of a worksheet. 
A) requires a minimum cash balance. 
B) does not allow adjusting entries. 
C) states the need to have accurate financial reports. 
D) does not allow the use of a worksheet.

Question 10

The amount for withdrawals,to be used on the Statement of Owner's Equity,would be obtained from:

Accepted Answer

A) the worksheet in the balance sheet debit column. 
B) the worksheet in the income statement credit column. 
C) the worksheet in the income statement debit column. 
D) the worksheet in the balance sheet credit column. 
A) the worksheet in the balance sheet debit column. 
B) the worksheet in the income statement credit column. 
C) the worksheet in the income statement debit column. 
D) the worksheet in the balance sheet credit column.

Question 11

A form used to organize and check data before preparing financial reports is known as a(n):

Accepted Answer

A) trial balance. 
B) income statement. 
C) ledger. 
D) worksheet. 
A) trial balance. 
B) income statement. 
C) ledger. 
D) worksheet.

Question 12

Withdrawals would most likely be found in which column of the worksheet?

Accepted Answer

A) Income statement 
B) Balance sheet 
C) Trial Balance 
D) Withdrawals would not appear on the worksheet. 
A) Income statement 
B) Balance sheet 
C) Trial Balance 
D) Withdrawals would not appear on the worksheet.

Question 13

Great Lakes Modeling Agency purchased $800 of office furniture at the beginning of the month.Depreciation Expense at the end of the month is $200.What is the balance of the Office Furniture account at the end of the month?

Accepted Answer

A) $700 
B) $1,000 
C) $200 
D) $800 
A) $700 
B) $1,000 
C) $200 
D) $800

Question 14

The order of the steps to prepare the worksheet are:

Accepted Answer

A) prepare the trial balance,complete adjustments,prepare the adjusted trial balance,extend the respective totals to the Income Statement and Balance Sheet columns. 
B) complete the adjustments,prepare the adjusted trial balance,prepare the trial balance,extend the respective totals to the Income Statement and Balance Sheet columns. 
C) extend the totals to the Income Statement and Balance Sheet columns,prepare the trial balance,complete the adjustments,prepare the adjusted trial balance. 
D) prepare the adjusted trial balance,complete the adjustments,prepare the trial balance,extend the respective totals to the Income Statement and Balance Sheet columns. 
A) prepare the trial balance,complete adjustments,prepare the adjusted trial balance,extend the respective totals to the Income Statement and Balance Sheet columns. 
B) complete the adjustments,prepare the adjusted trial balance,prepare the trial balance,extend the respective totals to the Income Statement and Balance Sheet columns. 
C) extend the totals to the Income Statement and Balance Sheet columns,prepare the trial balance,complete the adjustments,prepare the adjusted trial balance. 
D) prepare the adjusted trial balance,complete the adjustments,prepare the trial balance,extend the respective totals to the Income Statement and Balance Sheet columns.

Question 15

It's the end of the accounting period and no electric bill has been received (but the expense has been incurred);you should record an entry that:

Accepted Answer

A) increases the total assets and increases the total expenses. 
B) decreases the total assets and increases the total expenses. 
C) increases the total liabilities and increases the total expenses. 
D) decreases the total liabilities and increases the total expenses. 
A) increases the total assets and increases the total expenses. 
B) decreases the total assets and increases the total expenses. 
C) increases the total liabilities and increases the total expenses. 
D) decreases the total liabilities and increases the total expenses.

Question 16

Which of the following accounts would NOT appear on the Balance Sheet?

Accepted Answer

A) Accumulated Depreciation 
B) Rent Expense 
C) Equipment 
D) Cash 
A) Accumulated Depreciation 
B) Rent Expense 
C) Equipment 
D) Cash

Question 17

Logan's Snowboards estimated depreciation for office equipment at $250.The adjusting entry to record the depreciation would include:

Accepted Answer

A) a debit to Accumulated Depreciation for $250. 
B) a credit to Depreciation Expense for $250. 
C) a credit to Accumulated Depreciation for $250. 
D) a credit to Office Equipment for $250. 
A) a debit to Accumulated Depreciation for $250. 
B) a credit to Depreciation Expense for $250. 
C) a credit to Accumulated Depreciation for $250. 
D) a credit to Office Equipment for $250.

Question 18

What is the purpose of adjusting entries? Discuss the effect of not preparing adjusting entries on various accounts.

Accepted Answer

The purpose of adjusting entries is to a

Question 19

Financial statements are prepared from the:

Accepted Answer

A) trial balance. 
B) worksheet income and balance sheet columns. 
C) adjusted trial balance. 
D) ledger. 
A) trial balance. 
B) worksheet income and balance sheet columns. 
C) adjusted trial balance. 
D) ledger.

Question 20

On January 1 the Prepaid Insurance account had a balance of $6,000 that represented 6 months' worth of advance payment.It is now the end of March and there have been no adjustments to the account balance.Determine the amount of expense to record at the end of March.
$ ________

Accepted Answer

$3,000 [(6

Exam 4: The Accounting Cycle Continued

Define the expression accrued salaries.

If Prepaid Rent Expense for the period is NOT adjusted:

Evans Golf Academy estimated depreciation on its building at $300.The adjusting entry for depreciation of the building would include:

The debits do not equal credits on the adjusted trial balance columns of the worksheet.

Revenue is recorded when earned,and expenses are recorded only when incurred.

Rent expired at the end of an accounting period requires an adjustment.

The adjustment for accrued wages included the entire pay period,some of which occurs next month.This would:

Equipment was purchased for $50,000,residual value is $2,000 and it is expected that the useful life is 10 years.What is the book value of the equipment after the first year assuming straight-line depreciation? $ ________

The Sarbanes-Oxley Act:

The amount for withdrawals,to be used on the Statement of Owner's Equity,would be obtained from:

A form used to organize and check data before preparing financial reports is known as a(n):

Withdrawals would most likely be found in which column of the worksheet?

Great Lakes Modeling Agency purchased $800 of office furniture at the beginning of the month.Depreciation Expense at the end of the month is $200.What is the balance of the Office Furniture account at the end of the month?

The order of the steps to prepare the worksheet are:

It's the end of the accounting period and no electric bill has been received (but the expense has been incurred);you should record an entry that:

Which of the following accounts would NOT appear on the Balance Sheet?

Logan's Snowboards estimated depreciation for office equipment at $250.The adjusting entry to record the depreciation would include:

What is the purpose of adjusting entries? Discuss the effect of not preparing adjusting entries on various accounts.

Financial statements are prepared from the:

On January 1 the Prepaid Insurance account had a balance of $6,000 that represented 6 months' worth of advance payment.It is now the end of March and there have been no adjustments to the account balance.Determine the amount of expense to record at the end of March. $ ________

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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