Question 1

What does the credit balance in the Accumulated Depreciation account represent?

Accepted Answer

A)  the cost of additional equipment purchased this year 
B)  the amount of depreciation taken in past years 
C)  the cost of existing equipment sold during the year 
D)  the amount of depreciation taken in the current year 
A)  the cost of additional equipment purchased this year 
B)  the amount of depreciation taken in past years 
C)  the cost of existing equipment sold during the year 
D)  the amount of depreciation taken in the current year B

Question 2

The cash basis of accounting is used by some small businesses and by most individuals for tax purposes.

Accepted Answer

A) True 
 B)False  True

Question 3

Match the terms with the definitions.
-A principle that requires assets to be recorded at their actual cost.

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 I

Question 4

Match the terms with the definitions.
-A twelve-month period for which financial reports are prepared.

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 5

The owner's capital account in the last two columns of the work sheet is an up-to-date account and includes net income and withdrawals of the current period.

Accepted Answer

A) True 
 B)False

Question 6

Net income is shown on the work sheet as a

Accepted Answer

A)  debit in the Balance Sheet column. 
B)  credit in the Income Statement column. 
C)  debit in the Income Statement column. 
D)  debit in the Adjustments column. 
A)  debit in the Balance Sheet column. 
B)  credit in the Income Statement column. 
C)  debit in the Income Statement column. 
D)  debit in the Adjustments column.

Question 7

The original cost of an asset added to its salvage value represents the depreciable cost of an asset.

Accepted Answer

A) True 
 B)False

Question 8

The balance sheet reports

Accepted Answer

A)  assets. 
B)  revenue. 
C)  expenses. 
D)  net income. 
A)  assets. 
B)  revenue. 
C)  expenses. 
D)  net income.

Question 9

The only correct way to change the balance of a ledger account is to make a journal entry.

Accepted Answer

A) True 
 B)False

Question 10

Match the terms with the definitions.
-An account with a credit balance that is deducted from the related asset account on the balance sheet.

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 11

The formula to calculate straight-line depreciation is depreciable cost times the expected life of the asset.

Accepted Answer

A) True 
 B)False

Question 12

The matching of assets and expenses of a business on a periodic basis is referred to as the matching concept.

Accepted Answer

A) True 
 B)False

Question 13

Adjusting entries affect only the owner's equity accounts.

Accepted Answer

A) True 
 B)False

Question 14

The fourth pair of columns on a 10-column work sheet prepared at the end of the period would be the

Accepted Answer

A)  Income Statement columns. 
B)  Adjustments columns. 
C)  Balance Sheet columns. 
D)  Adjusted Trial Balance columns. 
A)  Income Statement columns. 
B)  Adjustments columns. 
C)  Balance Sheet columns. 
D)  Adjusted Trial Balance columns.

Question 15

A contra-asset appears on the income statement.

Accepted Answer

A) True 
 B)False

Question 16

The cash basis of accounting and the accrual basis of accounting result in the same measures of net income.

Accepted Answer

A) True 
 B)False

Question 17

A manual work sheet is usually prepared in pencil.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The net income or loss for the year can be found on the work sheet as the balance item at the bottom of either the Balance Sheet columns or the Income Statement columns.

Accepted Answer

A) True 
 B)False

Question 20

The business or professional person using the cash basis of accounting takes the view that there is no revenue until it is received in such a form that it can be spent.

Accepted Answer

A) True 
 B)False

What does the credit balance in the Accumulated Depreciation account represent?

The cash basis of accounting is used by some small businesses and by most individuals for tax purposes.

Match the terms with the definitions. -A principle that requires assets to be recorded at their actual cost.

Match the terms with the definitions. -A twelve-month period for which financial reports are prepared.

The owner's capital account in the last two columns of the work sheet is an up-to-date account and includes net income and withdrawals of the current period.

Net income is shown on the work sheet as a

The original cost of an asset added to its salvage value represents the depreciable cost of an asset.

The balance sheet reports

The only correct way to change the balance of a ledger account is to make a journal entry.

Match the terms with the definitions. -An account with a credit balance that is deducted from the related asset account on the balance sheet.

The formula to calculate straight-line depreciation is depreciable cost times the expected life of the asset.

The matching of assets and expenses of a business on a periodic basis is referred to as the matching concept.

Adjusting entries affect only the owner's equity accounts.

The fourth pair of columns on a 10-column work sheet prepared at the end of the period would be the

A contra-asset appears on the income statement.

The cash basis of accounting and the accrual basis of accounting result in the same measures of net income.

A manual work sheet is usually prepared in pencil.

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

The net income or loss for the year can be found on the work sheet as the balance item at the bottom of either the Balance Sheet columns or the Income Statement columns.

The business or professional person using the cash basis of accounting takes the view that there is no revenue until it is received in such a form that it can be spent.

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: 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 a Professional Service Business: The Combination Journal

Filters

Exam 5: Adjusting Entries and the Work Sheet

What does the credit balance in the Accumulated Depreciation account represent?

The cash basis of accounting is used by some small businesses and by most individuals for tax purposes.

Match the terms with the definitions. -A principle that requires assets to be recorded at their actual cost.

Match the terms with the definitions. -A twelve-month period for which financial reports are prepared.

The owner's capital account in the last two columns of the work sheet is an up-to-date account and includes net income and withdrawals of the current period.

Net income is shown on the work sheet as a

The original cost of an asset added to its salvage value represents the depreciable cost of an asset.

The balance sheet reports

The only correct way to change the balance of a ledger account is to make a journal entry.

Match the terms with the definitions. -An account with a credit balance that is deducted from the related asset account on the balance sheet.

The formula to calculate straight-line depreciation is depreciable cost times the expected life of the asset.

The matching of assets and expenses of a business on a periodic basis is referred to as the matching concept.

Adjusting entries affect only the owner's equity accounts.

The fourth pair of columns on a 10-column work sheet prepared at the end of the period would be the

A contra-asset appears on the income statement.

The cash basis of accounting and the accrual basis of accounting result in the same measures of net income.

A manual work sheet is usually prepared in pencil.

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

The net income or loss for the year can be found on the work sheet as the balance item at the bottom of either the Balance Sheet columns or the Income Statement columns.

The business or professional person using the cash basis of accounting takes the view that there is no revenue until it is received in such a form that it can be spent.

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: 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 a Professional Service Business: The Combination Journal

Filters