Question 1

On the worksheet, the difference between the debits and credits in the income statement columns would be the ending owner's equity balance.

Accepted Answer

A) True 
 B)False

Question 2

Larry's Snowboards estimated depreciation for office equipment at $750. The adjusting entry to record the depreciation would include:

Accepted Answer

A)  a debit to Office Equipment for $750. 
B)  a credit to Depreciation Expense for $750. 
C)  a credit to Accumulated Depreciation for $750. 
D)  a credit to Office Equipment for $750. 
A)  a debit to Office Equipment for $750. 
B)  a credit to Depreciation Expense for $750. 
C)  a credit to Accumulated Depreciation for $750. 
D)  a credit to Office Equipment for $750.

Question 3

The use of straight-line depreciation results in equal amounts of depreciation being taken over a period of time.

Accepted Answer

A) True 
 B)False

Question 4

Prepaid Rent Expense is considered to be a(n):

Accepted Answer

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

Question 5

Bringing account balances up to date before preparing financial reports is called:

Accepted Answer

A)  posting. 
B)  adjusting. 
C)  journalizing. 
D)  closing. 
A)  posting. 
B)  adjusting. 
C)  journalizing. 
D)  closing.

Question 6

It is the year end, but not the pay period end. How will this affect the balance sheet?

Accepted Answer

A)  Assets will be decreased. 
B)  Liabilities will be increased. 
C)  Owner's equity will be increased. 
D)  Net Income will be increased. 
A)  Assets will be decreased. 
B)  Liabilities will be increased. 
C)  Owner's equity will be increased. 
D)  Net Income will be increased.

Question 7

Unlimited Doors showed supplies available during the year of $2,300. A count of the supplies on hand as of October 31 is $1,200. The adjusting entry for Store Supplies would include:

Accepted Answer

A)  a debit to Store Supplies Expense for $1,200. 
B)  a credit to Store Supplies Expense for $1,200. 
C)  a debit to Store Supplies for $1,100. 
D)  a debit to Store Supplies Expense for $1,100. 
A)  a debit to Store Supplies Expense for $1,200. 
B)  a credit to Store Supplies Expense for $1,200. 
C)  a debit to Store Supplies for $1,100. 
D)  a debit to Store Supplies Expense for $1,100.

Question 8

From the following data, make the following adjustments, and complete the worksheet for the month.
a. Depreciation Expense is $500.
b. Supplies remaining at end of period $75.
c. Prepaid Insurance balance $400, $100 has expired.
d. Wages for the 5-day work-week are $1,000, the month ended on a Wednesday.

Accepted Answer

The answer of From the following data, make the following...

Question 9

The inside columns on the financial statements are used to:

Accepted Answer

A)  show debits. 
B)  show credits. 
C)  show subtotals. 
D)  show the Capital balance. 
A)  show debits. 
B)  show credits. 
C)  show subtotals. 
D)  show the Capital balance.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Determine the ending owner's equity of a business having a beginning owner's equity of $10,500, withdrawals of $1,300, and net income of $9,000.
$ ________

Accepted Answer

$18,200 [$

Question 12

If Prepaid Rent Expense for the period is NOT adjusted:

Accepted Answer

A)  assets will be overstated and expenses will be overstated. 
B)  assets will be overstated and expenses will be understated. 
C)  assets will be understated and expenses will be overstated. 
D)  revenue will be understated and expenses will be understated. 
A)  assets will be overstated and expenses will be overstated. 
B)  assets will be overstated and expenses will be understated. 
C)  assets will be understated and expenses will be overstated. 
D)  revenue will be understated and expenses will be understated.

Question 13

The cost of an asset less accumulated depreciation equals:

Accepted Answer

A)  residual value. 
B)  original cost. 
C)  depreciation expense. 
D)  depreciable value. 
A)  residual value. 
B)  original cost. 
C)  depreciation expense. 
D)  depreciable value.

Question 14

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 15

The adjusted trial balance on the worksheet shows Accumulated Depreciation, $2,000, and Depreciation Expense, $400. What was the balance in the Accumulated Depreciation account before the adjustment?

Accepted Answer

A)  $2,400 
B)  $1,600 
C)  $400 
D)  $2,000 
A)  $2,400 
B)  $1,600 
C)  $400 
D)  $2,000

Question 16

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 17

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 amount in the Accumulated Depreciation account after 6 years assuming straight-line depreciation?
$ ________

Accepted Answer

$28,800 [(

Question 18

What type of account is Salaries Payable?

Accepted Answer

A)  Asset 
B)  Contra-Asset 
C)  Liability 
D)  Revenue 
A)  Asset 
B)  Contra-Asset 
C)  Liability 
D)  Revenue

Question 19

The debits equal credits on the adjusted trial balance columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 4: The Accounting Cycle Continued

On the worksheet, the difference between the debits and credits in the income statement columns would be the ending owner's equity balance.

Larry's Snowboards estimated depreciation for office equipment at $750. The adjusting entry to record the depreciation would include:

The use of straight-line depreciation results in equal amounts of depreciation being taken over a period of time.

Prepaid Rent Expense is considered to be a(n):

Bringing account balances up to date before preparing financial reports is called:

It is the year end, but not the pay period end. How will this affect the balance sheet?

Unlimited Doors showed supplies available during the year of $2,300. A count of the supplies on hand as of October 31 is $1,200. The adjusting entry for Store Supplies would include:

The inside columns on the financial statements are used to:

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

Determine the ending owner's equity of a business having a beginning owner's equity of $10,500, withdrawals of $1,300, and net income of $9,000. $ ________

If Prepaid Rent Expense for the period is NOT adjusted:

The cost of an asset less accumulated depreciation equals:

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

The adjusted trial balance on the worksheet shows Accumulated Depreciation, $2,000, and Depreciation Expense, $400. What was the balance in the Accumulated Depreciation account before the adjustment?

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

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 amount in the Accumulated Depreciation account after 6 years assuming straight-line depreciation? $ ________

What type of account is Salaries Payable?

The debits equal credits on the adjusted trial balance columns of the worksheet.

Adjusting the Supplies account will:

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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