Question 1

Match the terms with the definitions.
-The amount an item can be sold for under normal economic conditions.

Accepted Answer

A) Adjusted Trial Balance columns 
B) Adjusting entries 
C) Balance Sheet columns 
D) book value 
E) contra-asset
F)depreciable cost
G)depreciation
H)fiscal year
I)historical cost principle
J)Income Statement columns
K)market value
L)matching principle
M)plant assets
N)salvage value
O)straight-line method
P)undepreciated cost
Q)useful life
R)work sheet 
A) Adjusted Trial Balance columns 
B) Adjusting entries 
C) Balance Sheet columns 
D) book value 
E) contra-asset
F)depreciable cost
G)depreciation
H)fiscal year
I)historical cost principle
J)Income Statement columns
K)market value
L)matching principle
M)plant assets
N)salvage value
O)straight-line method
P)undepreciated cost
Q)useful life
R)work sheet K

Question 2

A contra-asset is deducted from the related asset on the balance sheet.

Accepted Answer

A) True 
 B)False  True

Question 3

The book value of a plant asset is determined by subtracting the accumulated depreciation from the cost of the plant asset.

Accepted Answer

A) True 
 B)False  True

Question 4

If the total of the Income Statement Credit column, before determining net income or net loss, exceeds the total of the Income Statement Debit column, the result is a net loss for the year.

Accepted Answer

A) True 
 B)False

Question 5

Match the terms with the definitions.
-The period of time that an asset is expected to help produce revenues.

Accepted Answer

A) Adjusted Trial Balance columns 
B) Adjusting entries 
C) Balance Sheet columns 
D) book value 
E) contra-asset
F)depreciable cost
G)depreciation
H)fiscal year
I)historical cost principle
J)Income Statement columns
K)market value
L)matching principle
M)plant assets
N)salvage value
O)straight-line method
P)undepreciated cost
Q)useful life
R)work sheet 
A) Adjusted Trial Balance columns 
B) Adjusting entries 
C) Balance Sheet columns 
D) book value 
E) contra-asset
F)depreciable cost
G)depreciation
H)fiscal year
I)historical cost principle
J)Income Statement columns
K)market value
L)matching principle
M)plant assets
N)salvage value
O)straight-line method
P)undepreciated cost
Q)useful life
R)work sheet

Question 6

Accounting for expenses on the cash basis generally means that expenses are entered in the accounts even though they may have been charged and not paid for in cash.

Accepted Answer

A) True 
 B)False

Question 7

The balance sheet reports earnings on a specific date.

Accepted Answer

A) True 
 B)False

Question 8

The work sheet columns that show the amounts that will be reported in the statement of owner's equity and the balance sheet are the ____________________.

Accepted Answer

BALANCE SH

Question 9

Net income is shown on the work sheet as a(n)

Accepted Answer

A)  debit in the Balance Sheet columns. 
B)  credit in the Balance Sheet columns. 
C)  debit and a credit in the Balance Sheet columns. 
D)  adjustment to owner's equity. 
A)  debit in the Balance Sheet columns. 
B)  credit in the Balance Sheet columns. 
C)  debit and a credit in the Balance Sheet columns. 
D)  adjustment to owner's equity.

Question 10

The amount of depreciation taken each period will be the same using the straight-line method.

Accepted Answer

A) True 
 B)False

Question 11

Match the terms with the definitions.
-A depreciation method in which the depreciable cost is divided by the estimated useful life.

Accepted Answer

A) Adjusted Trial Balance columns 
B) Adjusting entries 
C) Balance Sheet columns 
D) book value 
E) contra-asset
F)depreciable cost
G)depreciation
H)fiscal year
I)historical cost principle
J)Income Statement columns
K)market value
L)matching principle
M)plant assets
N)salvage value
O)straight-line method
P)undepreciated cost
Q)useful life
R)work sheet 
A) Adjusted Trial Balance columns 
B) Adjusting entries 
C) Balance Sheet columns 
D) book value 
E) contra-asset
F)depreciable cost
G)depreciation
H)fiscal year
I)historical cost principle
J)Income Statement columns
K)market value
L)matching principle
M)plant assets
N)salvage value
O)straight-line method
P)undepreciated cost
Q)useful life
R)work sheet

Question 12

The time an asset is expected to last is called its

Accepted Answer

A)  depreciation. 
B)  fiscal period. 
C)  net loss value. 
D)  useful life. 
A)  depreciation. 
B)  fiscal period. 
C)  net loss value. 
D)  useful life.

Question 13

Owner's equity at the start of the period is $35,000; net income for the period is $30,000; the total investments by the owner is $15,000; and total withdrawals by the owner is $5,000. The owner's equity at the end of the period is

Accepted Answer

A)  $80,000. 
B)  $75,000. 
C)  $85,000. 
D)  $40,000. 
A)  $80,000. 
B)  $75,000. 
C)  $85,000. 
D)  $40,000.

Question 14

A fiscal year is always the same as the calendar year.

Accepted Answer

A) True 
 B)False

Question 15

Compute the following:
a.
Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Prepare the adjusting entry for the first year using the straight-line depreciation method and compute the book value at the end of the second year of the equipment's life.
b.
Zip Company pays its employees every Friday. On January 4, 20--, the Company paid $2,200 for the 5 days beginning the previous December 31. Prepare the adjusting entry on December 31.

Accepted Answer

The answer of Compute the following:
a.
Lobo Company purchased equipment for...

Question 16

Adjusting entries does not always affect both the income statement and the balance sheet.

Accepted Answer

A) True 
 B)False

Question 17

"Adjusting" is written in the Item column of the general ledger when posting adjusting entries.

Accepted Answer

A) True 
 B)False

Question 18

To record wages earned but not paid under the modified cash accounting method,

Accepted Answer

A)  debit Wages Payable and credit Wages Expense. 
B)  debit Cash and credit Wages Expense. 
C)  debit Wages Expense and credit Wages Payable. 
D)  no entry is required. 
A)  debit Wages Payable and credit Wages Expense. 
B)  debit Cash and credit Wages Expense. 
C)  debit Wages Expense and credit Wages Payable. 
D)  no entry is required.

Question 19

Match the terms with the definitions.
-Assets of a durable nature that will be used for operations over several years.

Accepted Answer

A) Adjusted Trial Balance columns 
B) Adjusting entries 
C) Balance Sheet columns 
D) book value 
E) contra-asset
F)depreciable cost
G)depreciation
H)fiscal year
I)historical cost principle
J)Income Statement columns
K)market value
L)matching principle
M)plant assets
N)salvage value
O)straight-line method
P)undepreciated cost
Q)useful life
R)work sheet 
A) Adjusted Trial Balance columns 
B) Adjusting entries 
C) Balance Sheet columns 
D) book value 
E) contra-asset
F)depreciable cost
G)depreciation
H)fiscal year
I)historical cost principle
J)Income Statement columns
K)market value
L)matching principle
M)plant assets
N)salvage value
O)straight-line method
P)undepreciated cost
Q)useful life
R)work sheet

Question 20

Recording adjustments on the work sheet has no effect on the ledger accounts.

Accepted Answer

A) True 
 B)False

Exam 5: Adjusting Entries and the Work Sheet

Match the terms with the definitions. -The amount an item can be sold for under normal economic conditions.

A contra-asset is deducted from the related asset on the balance sheet.

The book value of a plant asset is determined by subtracting the accumulated depreciation from the cost of the plant asset.

If the total of the Income Statement Credit column, before determining net income or net loss, exceeds the total of the Income Statement Debit column, the result is a net loss for the year.

Match the terms with the definitions. -The period of time that an asset is expected to help produce revenues.

Accounting for expenses on the cash basis generally means that expenses are entered in the accounts even though they may have been charged and not paid for in cash.

The balance sheet reports earnings on a specific date.

The work sheet columns that show the amounts that will be reported in the statement of owner's equity and the balance sheet are the ____________________.

Net income is shown on the work sheet as a(n)

The amount of depreciation taken each period will be the same using the straight-line method.

Match the terms with the definitions. -A depreciation method in which the depreciable cost is divided by the estimated useful life.

The time an asset is expected to last is called its

Owner's equity at the start of the period is $35,000; net income for the period is $30,000; the total investments by the owner is $15,000; and total withdrawals by the owner is $5,000. The owner's equity at the end of the period is

A fiscal year is always the same as the calendar year.

Adjusting entries does not always affect both the income statement and the balance sheet.

"Adjusting" is written in the Item column of the general ledger when posting adjusting entries.

To record wages earned but not paid under the modified cash accounting method,

Match the terms with the definitions. -Assets of a durable nature that will be used for operations over several years.

Recording adjustments on the work sheet has no effect on the ledger accounts.

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for Accounts Receivable

Accounting for Notes and Interest

Accounting for Long-Term Assets

Accounting for Partnerships

Corporations: Organization and Capital Stocks

Corporations: Earnings, Taxes, Distributions, and the Retained Earnings Statement

Corporations: Bonds

Statement of Cash Flows

Analysis of Financial Statements

Departmental Accounting

Manufacturing Accounting: The Job Order Cost System

Manufacturing Accounting: The Work Sheet and Financial Statements

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