Question 1

Discuss the benefits of the worksheet.Explain how the financial reports are prepared from the worksheet.

Accepted Answer

An accountant uses a worksheet like a sc

Question 2

On the worksheet,the Income Statement debit column totaled $1100 and the credit column totaled $2,000.What is the amount of Net Income?
$ ________

Accepted Answer

$900 [$2,0

Question 3

The spreading or allocating of the cost of a long-term asset is called discounting.

Accepted Answer

A) True 
 B)False

Question 4

Determine the ending owner's equity of a business having a beginning owner's equity of $10,500,withdrawals of $1,300,and net income of $9,000.
$ ________

Accepted Answer

$18,200 [$

Question 5

To compute net income or net loss,the debit and credit columns of the income statement section of the worksheet are totaled,and the difference is placed on the smaller side.

Accepted Answer

A) True 
 B)False

Question 6

If the Supplies account is NOT adjusted:

Accepted Answer

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

Question 7

Robert purchased a truck for $50,000 with a residual value of $20,000 and a life expectancy of 5 years;using straight-line depreciation,the amount of the depreciation adjustment for the first year would be:

Accepted Answer

A) $5,000. 
B) $6,000. 
C) $6,400. 
D) $4,000. 
A) $5,000. 
B) $6,000. 
C) $6,400. 
D) $4,000.

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 amount in the Accumulated Depreciation account after 3 years assuming straight-line depreciation?
$ ________

Accepted Answer

$5,400 [$1

Question 9

To record accrued salaries,you would:

Accepted Answer

A) debit Cash and credit Salaries Payable. 
B) debit Salaries Payable and credit Salaries Expense. 
C) debit Salaries Expense and credit Salaries Payable. 
D) debit Salaries Expense and credit Cash. 
A) debit Cash and credit Salaries Payable. 
B) debit Salaries Payable and credit Salaries Expense. 
C) debit Salaries Expense and credit Salaries Payable. 
D) debit Salaries Expense and credit Cash.

Question 10

At the start of this year 18 months rent was paid.At the year's end,how will this affect the balance sheet?

Accepted Answer

A) Assets will be decreased. 
B) Liabilities will be increased. 
C) Owner's equity will be increased. 
D) This has no effect on the period end balance sheet. 
A) Assets will be decreased. 
B) Liabilities will be increased. 
C) Owner's equity will be increased. 
D) This has no effect on the period end balance sheet.

Question 11

For each account listed,identify the category it belongs to,the normal balance (debit or credit),and the financial statement in which the account appears.

Accepted Answer

The answer of For each account listed,identify the category it...

Question 12

An important function of the worksheet is for the accountant to find and correct errors before the financial statements are prepared.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would cause a contra-asset to be credited and an expense debited?

Accepted Answer

A) Recording an accrued expense 
B) Recording the consumption of supplies 
C) Recording the building depreciation 
D) All of the above would have that effect. 
A) Recording an accrued expense 
B) Recording the consumption of supplies 
C) Recording the building depreciation 
D) All of the above would have that effect.

Question 14

Which of the following would cause total assets to decrease and total expense to increase?

Accepted Answer

A) Recording the depreciation of equipment 
B) Recording the consumption of supplies 
C) Recording the expiration of Prepaid Rent Expense 
D) All of the above would have that effect 
A) Recording the depreciation of equipment 
B) Recording the consumption of supplies 
C) Recording the expiration of Prepaid Rent Expense 
D) All of the above would have that effect

Question 15

Assuming no investments were made during the period,the balance of Capital shown on the worksheet is:

Accepted Answer

A) beginning capital. 
B) ending capital. 
C) net income. 
D) equal to owner's withdrawals. 
A) beginning capital. 
B) ending capital. 
C) net income. 
D) equal to owner's withdrawals.

Question 16

An adjustment for Prepaid Rent Expense would indicate:

Accepted Answer

A) the amount originally paid. 
B) the amount expired. 
C) the amount of the ending balance. 
D) the amount of the trial balance. 
A) the amount originally paid. 
B) the amount expired. 
C) the amount of the ending balance. 
D) the amount of the trial balance.

Question 17

The adjustment to record supplies used during the period would be:

Accepted Answer

A) debit Supplies;credit Supplies Expense. 
B) debit Supplies Expense;credit Cash. 
C) debit Supplies Expense;credit Supplies. 
D) debit Supplies;credit Cash. 
A) debit Supplies;credit Supplies Expense. 
B) debit Supplies Expense;credit Cash. 
C) debit Supplies Expense;credit Supplies. 
D) debit Supplies;credit Cash.

Question 18

As accumulated depreciation is recorded,the book value:

Accepted Answer

A) increases. 
B) decreases. 
C) remains the same. 
D) is closed out. 
A) increases. 
B) decreases. 
C) remains the same. 
D) is closed out.

Question 19

On the worksheet,the Balance Sheet debit column totaled $2,000 and the credit column totaled $1,400.What is the amount of Net Loss?
$ ________

Accepted Answer

$600 [$2,0

Question 20

If the balance of supplies at the start of the month was $900 and at the end of the month you had $450 on hand,the adjustment for Supplies would be:

Accepted Answer

A) $450. 
B) $550. 
C) $350. 
D) $900. 
A) $450. 
B) $550. 
C) $350. 
D) $900.

Exam 4: The Accounting Cycle Continued

Discuss the benefits of the worksheet.Explain how the financial reports are prepared from the worksheet.

On the worksheet,the Income Statement debit column totaled $1100 and the credit column totaled $2,000.What is the amount of Net Income? $ ________

The spreading or allocating of the cost of a long-term asset is called discounting.

Determine the ending owner's equity of a business having a beginning owner's equity of $10,500,withdrawals of $1,300,and net income of $9,000. $ ________

To compute net income or net loss,the debit and credit columns of the income statement section of the worksheet are totaled,and the difference is placed on the smaller side.

If the Supplies account is NOT adjusted:

Robert purchased a truck for $50,000 with a residual value of $20,000 and a life expectancy of 5 years;using straight-line depreciation,the amount of the depreciation adjustment for the first year would be:

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 amount in the Accumulated Depreciation account after 3 years assuming straight-line depreciation? $ ________

To record accrued salaries,you would:

At the start of this year 18 months rent was paid.At the year's end,how will this affect the balance sheet?

For each account listed,identify the category it belongs to,the normal balance (debit or credit),and the financial statement in which the account appears.

An important function of the worksheet is for the accountant to find and correct errors before the financial statements are prepared.

Which of the following would cause a contra-asset to be credited and an expense debited?

Which of the following would cause total assets to decrease and total expense to increase?

Assuming no investments were made during the period,the balance of Capital shown on the worksheet is:

An adjustment for Prepaid Rent Expense would indicate:

The adjustment to record supplies used during the period would be:

As accumulated depreciation is recorded,the book value:

On the worksheet,the Balance Sheet debit column totaled $2,000 and the credit column totaled $1,400.What is the amount of Net Loss? $ ________

If the balance of supplies at the start of the month was $900 and at the end of the month you had $450 on hand,the adjustment for Supplies would be:

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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