Question 1

On the formal income statement,the left column is the debit column,and the right column is the credit column.

Accepted Answer

A) True 
 B)False

Question 2

After the adjustment for depreciation has been made,the original cost of the equipment:

Accepted Answer

A) increases with a credit. 
B) decreases with a debit. 
C) remains the same. 
D) None of these answers is correct. 
A) increases with a credit. 
B) decreases with a debit. 
C) remains the same. 
D) None of these answers is correct.

Question 3

Prepaid Rent Expense is a contra-asset with a normal balance of a debit.

Accepted Answer

A) True 
 B)False

Question 4

A contra-asset is:

Accepted Answer

A) a liability. 
B) an asset with a debit balance. 
C) an account with an opposite balance of a normal asset. 
D) an account that increases the asset. 
A) a liability. 
B) an asset with a debit balance. 
C) an account with an opposite balance of a normal asset. 
D) an account that increases the asset.

Question 5

The adjusted trial balance on the worksheet shows Accumulated Depreciation,$1,200,and Depreciation Expense,$900.What was the balance in the Accumulated Depreciation account before the adjustment?

Accepted Answer

A) $2,100 
B) $300 
C) $900 
D) $1,200 
A) $2,100 
B) $300 
C) $900 
D) $1,200

Question 6

As Prepaid Rent Expense is used,the asset becomes a(n):

Accepted Answer

A) liability. 
B) expense. 
C) contra-asset. 
D) revenue. 
A) liability. 
B) expense. 
C) contra-asset. 
D) revenue.

Question 7

Every amount needed for the income statement can be found on the worksheet.

Accepted Answer

A) True 
 B)False

Question 8

When making the adjustment for prepaid insurance,instead of writing off only the time that has passed,the entire policy was written off.This would:

Accepted Answer

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

Question 9

The inside columns on the financial statements are used to:

Accepted Answer

A) show debits. 
B) show credits. 
C) show subtotals. 
D) None of these answers is correct. 
A) show debits. 
B) show credits. 
C) show subtotals. 
D) None of these answers is correct.

Question 10

Adjusting the supplies account will:

Accepted Answer

A) decrease the total assets and increase the total expenses. 
B) decrease the total assets and decrease the total expenses. 
C) increase the total assets and increase the total expenses. 
D) increase the total assets and decrease the total expenses. 
A) decrease the total assets and increase the total expenses. 
B) decrease the total assets and decrease the total expenses. 
C) increase the total assets and increase the total expenses. 
D) increase the total assets and decrease the total expenses.

Question 11

The worksheet contains a trial balance.

Accepted Answer

A) True 
 B)False

Question 12

Original cost of equipment is adjusted on the worksheet.

Accepted Answer

A) True 
 B)False

Question 13

Depreciation of equipment was recorded twice this period.This would:

Accepted Answer

A) overstate expenses and overstate assets. 
B) overstate expenses and understate assets. 
C) understate expenses and overstate assets. 
D) understate assets and understate assets. 
A) overstate expenses and overstate assets. 
B) overstate expenses and understate assets. 
C) understate expenses and overstate assets. 
D) understate assets and understate assets.

Question 14

Samantha purchased a two-year insurance policy for $7,200.The adjusting entry for one month would include a:

Accepted Answer

A) debit to Insurance Expense,$300. 
B) credit to Cash,$300. 
C) debit to Prepaid Insurance,$300. 
D) credit to Insurance expense,$300. 
A) debit to Insurance Expense,$300. 
B) credit to Cash,$300. 
C) debit to Prepaid Insurance,$300. 
D) credit to Insurance expense,$300.

Question 15

The entry to record the expiration of part of the Prepaid Rent Expense will:

Accepted Answer

A) decrease total liabilities and increase total expenses at the end of the month. 
B) decrease total assets and decrease total expenses at the end of the month. 
C) increase total assets and increase total expenses at the end of the month. 
D) increase total assets and decrease total expenses at the end of the month. 
A) decrease total liabilities and increase total expenses at the end of the month. 
B) decrease total assets and decrease total expenses at the end of the month. 
C) increase total assets and increase total expenses at the end of the month. 
D) increase total assets and decrease total expenses at the end of the month.

Question 16

If the adjustment for Supplies used during the period was NOT made:

Accepted Answer

A) expenses would be too low. 
B) assets would be too low. 
C) expenses would be too high. 
D) revenue would be too low. 
A) expenses would be too low. 
B) assets would be too low. 
C) expenses would be too high. 
D) revenue would be too low.

Question 17

On November 30,the balance in the Supplies account was $500.During December additional supplies were purchased of $200.On December 31,there was $200 worth of Supplies on hand.What would be the adjustment for the month of December for Supplies?
$ ________

Accepted Answer

$500 [$500

Question 18

Which of the following is most likely to result in an adjusting entry at the end of the period?

Accepted Answer

A) Payment of two months' insurance in advance 
B) Payment of one month's rent 
C) Owner's withdrawals 
D) Owner's investment 
A) Payment of two months' insurance in advance 
B) Payment of one month's rent 
C) Owner's withdrawals 
D) Owner's investment

Question 19

The adjustment for wages earned,but not yet paid is:

Accepted Answer

A) Debit Wages Expense,credit Cash. 
B) Debit Wages Payable,credit Wages Expense. 
C) Debit Wages Payable,credit Cash. 
D) Debit Wages Expense,credit Wages Payable. 
A) Debit Wages Expense,credit Cash. 
B) Debit Wages Payable,credit Wages Expense. 
C) Debit Wages Payable,credit Cash. 
D) Debit Wages Expense,credit Wages Payable.

Question 20

All of the following are reasons to adjust the account balances at the end of the period,except:

Accepted Answer

A) to accurately report the assets on the balance sheet. 
B) to report all revenues earned during the period. 
C) to report all expenses incurred during the period. 
D) to correct any errors made during the period. 
A) to accurately report the assets on the balance sheet. 
B) to report all revenues earned during the period. 
C) to report all expenses incurred during the period. 
D) to correct any errors made during the period.

Exam 4: The Accounting Cycle Continued

On the formal income statement,the left column is the debit column,and the right column is the credit column.

After the adjustment for depreciation has been made,the original cost of the equipment:

Prepaid Rent Expense is a contra-asset with a normal balance of a debit.

A contra-asset is:

The adjusted trial balance on the worksheet shows Accumulated Depreciation,$1,200,and Depreciation Expense,$900.What was the balance in the Accumulated Depreciation account before the adjustment?

As Prepaid Rent Expense is used,the asset becomes a(n):

Every amount needed for the income statement can be found on the worksheet.

When making the adjustment for prepaid insurance,instead of writing off only the time that has passed,the entire policy was written off.This would:

The inside columns on the financial statements are used to:

Adjusting the supplies account will:

The worksheet contains a trial balance.

Original cost of equipment is adjusted on the worksheet.

Depreciation of equipment was recorded twice this period.This would:

Samantha purchased a two-year insurance policy for $7,200.The adjusting entry for one month would include a:

The entry to record the expiration of part of the Prepaid Rent Expense will:

If the adjustment for Supplies used during the period was NOT made:

On November 30,the balance in the Supplies account was $500.During December additional supplies were purchased of $200.On December 31,there was $200 worth of Supplies on hand.What would be the adjustment for the month of December for Supplies? $ ________

Which of the following is most likely to result in an adjusting entry at the end of the period?

The adjustment for wages earned,but not yet paid is:

All of the following are reasons to adjust the account balances at the end of the period,except:

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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