Question 1

On the worksheet,the difference between the debits and credits in the income statement columns would be the net income or net loss for the period.

Accepted Answer

A) True 
 B)False

Question 2

Debits must exceed credits on the Statement of Owner's equity.

Accepted Answer

A) True 
 B)False

Question 3

Equipment with a cost of $150,000 has an accumulated depreciation of $50,000.What is the historical cost of the equipment?

Accepted Answer

A) $150,000 
B) $50,000 
C) $200,000 
D) $100,000 
A) $150,000 
B) $50,000 
C) $200,000 
D) $100,000

Question 4

Accumulated Depreciation is a contra-asset account found on the income statement.

Accepted Answer

A) True 
 B)False

Question 5

When an asset expires or is used up,it becomes an liability.

Accepted Answer

A) True 
 B)False

Question 6

Adjustments are necessary to update account balances for internal transactions.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following accounts would most likely NOT need to be adjusted at the end of the year?

Accepted Answer

A) Office Supplies 
B) Prepaid Insurance Expense 
C) Accumulated Depreciation 
D) Cash 
A) Office Supplies 
B) Prepaid Insurance Expense 
C) Accumulated Depreciation 
D) Cash

Question 8

Equipment with a cost of $500,000 has an accumulated depreciation of $400,000.What is the book value of the equipment?

Accepted Answer

A) $150,000 
B) $50,000 
C) $200,000 
D) $100,000 
A) $150,000 
B) $50,000 
C) $200,000 
D) $100,000

Question 9

The worksheet is the last financial statement prepared.

Accepted Answer

A) True 
 B)False

Question 10

The original cost of equipment is not reduced by the amount of Depreciation Expense.

Accepted Answer

A) True 
 B)False

Question 11

Provide the adjusting entries to account for the differences between the trial balance amounts and the adjusted trial balance amounts for the accounts shown.Only a partial trial balance is provided.Use T accounts to show the adjustments.

Accepted Answer

The answer of Provide the adjusting entries to account for...

Question 12

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 annual depreciation adjustment amount after the first year assuming straight-line depreciation?
$ ________

Accepted Answer

$4,800 [$5

Question 13

When historical cost is used to record equipment,it would appear as the:

Accepted Answer

A) original cost in an asset on the balance sheet. 
B) residual value in the Stockholders Equity account. 
C) residual value in an asset on the balance sheet. 
D) original cost on the income statement. 
A) original cost in an asset on the balance sheet. 
B) residual value in the Stockholders Equity account. 
C) residual value in an asset on the balance sheet. 
D) original cost on the income statement.

Question 14

What type of account is Salaries Payable?

Accepted Answer

A) Asset 
B) Contra-Asset 
C) Liability 
D) Owner's equity 
A) Asset 
B) Contra-Asset 
C) Liability 
D) Owner's equity

Question 15

Online Service received its telephone bill for January,but is not going to pay the bill until February.What adjustment is needed to record the transaction?

Accepted Answer

A) Debit Telephone Expense;credit Cash 
B) Debit Accounts Payable;credit Telephone Expense 
C) Debit Telephone Expense;credit Accounts Payable 
D) Debit Accounts Payable;credit Cash 
A) Debit Telephone Expense;credit Cash 
B) Debit Accounts Payable;credit Telephone Expense 
C) Debit Telephone Expense;credit Accounts Payable 
D) Debit Accounts Payable;credit Cash

Question 16

Which of the following accounts would appear on the income statement?

Accepted Answer

A) Accumulated Depreciation 
B) Depreciation Expense 
C) Fees Earned 
D) Both B and C. 
A) Accumulated Depreciation 
B) Depreciation Expense 
C) Fees Earned 
D) Both B and C.

Question 17

Which of the financial statements is prepared first from the worksheet?

Accepted Answer

A) Balance sheet 
B) Income statement 
C) Statement of owner's equity 
D) None of these answers is correct. 
A) Balance sheet 
B) Income statement 
C) Statement of owner's equity 
D) None of these answers is correct.

Question 18

Which of the following transactions would result in an accrual?

Accepted Answer

A) Salary expense has been incurred but unpaid. 
B) Rent expired for the month. 
C) Supplies used during the accounting period 
D) Owner's withdrawals 
A) Salary expense has been incurred but unpaid. 
B) Rent expired for the month. 
C) Supplies used during the accounting period 
D) Owner's withdrawals

Question 19

Which of the following would be an example of a contra-asset?

Accepted Answer

A) Depreciation Expense 
B) Residual Value 
C) Accumulated Depreciation 
D) Discount on Bonds 
A) Depreciation Expense 
B) Residual Value 
C) Accumulated Depreciation 
D) Discount on Bonds

Question 20

The cost of an asset less accumulated depreciation equals:

Accepted Answer

A) residual value. 
B) book value. 
C) depreciation expense. 
D) depreciable value. 
A) residual value. 
B) book value. 
C) depreciation expense. 
D) depreciable value.

Exam 4: The Accounting Cycle Continued

On the worksheet,the difference between the debits and credits in the income statement columns would be the net income or net loss for the period.

Debits must exceed credits on the Statement of Owner's equity.

Equipment with a cost of $150,000 has an accumulated depreciation of $50,000.What is the historical cost of the equipment?

Accumulated Depreciation is a contra-asset account found on the income statement.

When an asset expires or is used up,it becomes an liability.

Adjustments are necessary to update account balances for internal transactions.

Which of the following accounts would most likely NOT need to be adjusted at the end of the year?

Equipment with a cost of $500,000 has an accumulated depreciation of $400,000.What is the book value of the equipment?

The worksheet is the last financial statement prepared.

The original cost of equipment is not reduced by the amount of Depreciation Expense.

Provide the adjusting entries to account for the differences between the trial balance amounts and the adjusted trial balance amounts for the accounts shown.Only a partial trial balance is provided.Use T accounts to show the adjustments.

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 annual depreciation adjustment amount after the first year assuming straight-line depreciation? $ ________

When historical cost is used to record equipment,it would appear as the:

What type of account is Salaries Payable?

Online Service received its telephone bill for January,but is not going to pay the bill until February.What adjustment is needed to record the transaction?

Which of the following accounts would appear on the income statement?

Which of the financial statements is prepared first from the worksheet?

Which of the following transactions would result in an accrual?

Which of the following would be an example of a contra-asset?

The cost of an asset less accumulated depreciation equals:

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

Filters