Question 1

The ending figure for capital,used on the balance sheet,will be obtained from:

Accepted Answer

A) balance sheet credit column of the worksheet. 
B) the statement of owner's equity. 
C) balance sheet debit column of the worksheet. 
D) credit column of the income statement. 
A) balance sheet credit column of the worksheet. 
B) the statement of owner's equity. 
C) balance sheet debit column of the worksheet. 
D) credit column of the income statement.

Question 2

Sarah's Spices accrued wages are $1,800.Which of the following is the required adjusting entry?

Accepted Answer

A) Debit Salaries Expense,$1,800;credit Salaries Payable,$1,800 
B) Credit Salaries Expense,$1,800;debit Salaries Payable,$1,800 
C) Debit Cash,$1,800;credit Salaries Expense,$1,800 
D) Debit Salaries Payable,$1,800;credit Cash,$1,800 
A) Debit Salaries Expense,$1,800;credit Salaries Payable,$1,800 
B) Credit Salaries Expense,$1,800;debit Salaries Payable,$1,800 
C) Debit Cash,$1,800;credit Salaries Expense,$1,800 
D) Debit Salaries Payable,$1,800;credit Cash,$1,800

Question 3

Accumulated Depreciation is a contra-asset account.

Accepted Answer

A) True 
 B)False

Question 4

NOT recording the Prepaid Rent Expense used causes:

Accepted Answer

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

Question 5

When historical cost is used in the accounting records,the book value of the asset is:

Accepted Answer

A) the original cost. 
B) the market value. 
C) original cost less accumulated depreciation. 
D) closed out. 
A) the original cost. 
B) the market value. 
C) original cost less accumulated depreciation. 
D) closed out.

Question 6

Residual value is the:

Accepted Answer

A) estimated value of the asset when it is purchased. 
B) estimated value of the asset at the end of its useful life. 
C) cost of the asset. 
D) same as book value. 
A) estimated value of the asset when it is purchased. 
B) estimated value of the asset at the end of its useful life. 
C) cost of the asset. 
D) same as book value.

Question 7

The adjustment for depreciation was credited to Equipment and debited to Depreciation Expense.This would:

Accepted Answer

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

Question 8

Which of the following would cause a liability to be credited and an expense to be debited?

Accepted Answer

A) Recording the adjustment for the expiration of rent 
B) Recording the depreciation of equipment 
C) Recording the accrual of salaries incurred 
D) Purchasing equipment 
A) Recording the adjustment for the expiration of rent 
B) Recording the depreciation of equipment 
C) Recording the accrual of salaries incurred 
D) Purchasing equipment

Question 9

On a worksheet,the income statement debit column totals $10,500 and the credit column totals $10,300.Which of the following statements is correct?

Accepted Answer

A) The company had a net loss of $200. 
B) The company had a net income of $200. 
C) The company's revenues were greater than expenses. 
D) None of the above is correct. 
A) The company had a net loss of $200. 
B) The company had a net income of $200. 
C) The company's revenues were greater than expenses. 
D) None of the above is correct.

Question 10

The amount of supplies used during the period would be shown in the adjustment columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following accounts would most likely be depreciated?

Accepted Answer

A) Equipment 
B) Office Supplies 
C) Investments 
D) Accounts Payable 
A) Equipment 
B) Office Supplies 
C) Investments 
D) Accounts Payable

Question 12

Show which columns would contain the adjusted balances by placing an "x" in the appropriate column.Assume all accounts have normal balances.

Accepted Answer

The answer of Show which columns would contain the adjusted...

Question 13

Bailey's received its electric bill for December on December 31 but did not pay nor record it in the general journal.This resulted in:

Accepted Answer

A) understated assets. 
B) overstated net income. 
C) overstated liabilities. 
D) understated revenue. 
A) understated assets. 
B) overstated net income. 
C) overstated liabilities. 
D) understated revenue.

Question 14

The company pays $3,000 per 5 day work week.The total expenses as of Friday,April 27 were $12,000.What would be the month's total expenses as of April 30 (assuming no pay is earned over the weekend)?
$ ________

Accepted Answer

$12,600 [$

Question 15

Historical cost is the same as:

Accepted Answer

A) residual value. 
B) original cost. 
C) depreciable value. 
D) book value. 
A) residual value. 
B) original cost. 
C) depreciable value. 
D) book value.

Question 16

The beginning capital balance used on the Statement of Owner's Equity is obtained from:

Accepted Answer

A) the worksheet in the balance sheet credit column. 
B) the worksheet in the income statement credit column. 
C) the amount calculated on the statement of owner's equity. 
D) the general ledger. 
A) the worksheet in the balance sheet credit column. 
B) the worksheet in the income statement credit column. 
C) the amount calculated on the statement of owner's equity. 
D) the general ledger.

Question 17

Total wages per week are $4,800.You need to accrue $5,000 of wages.The adjusting entry would include which of the following?

Accepted Answer

A) Credit Wages Expense,$5,000;debit Wages Payable,$5,000 
B) Debit Wages Expense,$5,000;credit Wages Payable,$5,000 
C) Debit Wages Expense,$4,800;credit Wages Payable,$4,800 
D) Debit Wages Expense,$4,800;credit Cash,$4,800 
A) Credit Wages Expense,$5,000;debit Wages Payable,$5,000 
B) Debit Wages Expense,$5,000;credit Wages Payable,$5,000 
C) Debit Wages Expense,$4,800;credit Wages Payable,$4,800 
D) Debit Wages Expense,$4,800;credit Cash,$4,800

Question 18

The adjusted trial balance columns:

Accepted Answer

A) help to ensure the ledger is still in balance. 
B) help to identify any errors that may have been made during adjustment. 
C) show updated account balances to aid in preparation of the financial statements. 
D) All of the above are correct. 
A) help to ensure the ledger is still in balance. 
B) help to identify any errors that may have been made during adjustment. 
C) show updated account balances to aid in preparation of the financial statements. 
D) All of the above are correct.

Question 19

Depreciation Expense is debited when recording the depreciation for the period.

Accepted Answer

A) True 
 B)False

Question 20

The adjustment that is made to allocate the cost of a building over its expected life is called:

Accepted Answer

A) depreciation expense. 
B) residual value. 
C) accumulated depreciation. 
D) None of these answers is correct. 
A) depreciation expense. 
B) residual value. 
C) accumulated depreciation. 
D) None of these answers is correct.

Exam 4: The Accounting Cycle Continued

The ending figure for capital,used on the balance sheet,will be obtained from:

Sarah's Spices accrued wages are $1,800.Which of the following is the required adjusting entry?

Accumulated Depreciation is a contra-asset account.

NOT recording the Prepaid Rent Expense used causes:

When historical cost is used in the accounting records,the book value of the asset is:

Residual value is the:

The adjustment for depreciation was credited to Equipment and debited to Depreciation Expense.This would:

Which of the following would cause a liability to be credited and an expense to be debited?

On a worksheet,the income statement debit column totals $10,500 and the credit column totals $10,300.Which of the following statements is correct?

The amount of supplies used during the period would be shown in the adjustment columns of the worksheet.

Which of the following accounts would most likely be depreciated?

Show which columns would contain the adjusted balances by placing an "x" in the appropriate column.Assume all accounts have normal balances.

Bailey's received its electric bill for December on December 31 but did not pay nor record it in the general journal.This resulted in:

The company pays $3,000 per 5 day work week.The total expenses as of Friday,April 27 were $12,000.What would be the month's total expenses as of April 30 (assuming no pay is earned over the weekend)? $ ________

Historical cost is the same as:

The beginning capital balance used on the Statement of Owner's Equity is obtained from:

Total wages per week are $4,800.You need to accrue $5,000 of wages.The adjusting entry would include which of the following?

The adjusted trial balance columns:

Depreciation Expense is debited when recording the depreciation for the period.

The adjustment that is made to allocate the cost of a building over its expected life is called:

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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