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

A contra-asset is:

Accepted Answer

A)  a liability. 
B)  an asset with a debit balance. 
C)  an account with an opposite balance of a normal asset. 
D)  a revenue account. 
A)  a liability. 
B)  an asset with a debit balance. 
C)  an account with an opposite balance of a normal asset. 
D)  a revenue account.

Question 3

Simpson Golf Academy estimated depreciation on its building at $1,300. The adjusting entry for depreciation of the building would include:

Accepted Answer

A)  a debit to Building for $1,300. 
B)  a debit to Depreciation Expense for $1,300. 
C)  a credit to Building for $1,300. 
D)  a credit to Depreciation Expense for $1,300. 
A)  a debit to Building for $1,300. 
B)  a debit to Depreciation Expense for $1,300. 
C)  a credit to Building for $1,300. 
D)  a credit to Depreciation Expense for $1,300.

Question 4

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 book value of the equipment after the third year assuming straight-line depreciation?
$ ________

Accepted Answer

$35,600 [$

Question 5

Discuss the benefits of the worksheet. Explain how the financial reports are prepared from the worksheet.

Accepted Answer

An accountant uses a worksheet like a sc

Question 6

Which of the financial statements is prepared last 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 7

At the start of this year 18 months of rent was paid. At the year's 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 8

Which of the following would cause total assets to decrease and total expenses to increase?

Accepted Answer

A)  Recording the depreciation of equipment 
B)  Recording the consumption of supplies 
C)  Recording the expiration of Prepaid Rent Expense 
D)  All of the above would have that effect. 
A)  Recording the depreciation of equipment 
B)  Recording the consumption of supplies 
C)  Recording the expiration of Prepaid Rent Expense 
D)  All of the above would have that effect.

Question 9

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 10

Financial statements are prepared from the:

Accepted Answer

A)  trial balance. 
B)  worksheet income and balance sheet columns. 
C)  adjusted trial balance. 
D)  ledger. 
A)  trial balance. 
B)  worksheet income and balance sheet columns. 
C)  adjusted trial balance. 
D)  ledger.

Question 11

The worksheet is the first financial statement prepared.

Accepted Answer

A) True 
 B)False

Question 12

The worksheet is a formal financial statement.

Accepted Answer

A) True 
 B)False

Question 13

To record accrued salaries, you would:

Accepted Answer

A)  debit Cash and credit Salaries Payable. 
B)  debit Salaries Payable and credit Salaries Expense. 
C)  debit Salaries Expense and credit Salaries Payable. 
D)  debit Salaries Expense and credit Cash. 
A)  debit Cash and credit Salaries Payable. 
B)  debit Salaries Payable and credit Salaries Expense. 
C)  debit Salaries Expense and credit Salaries Payable. 
D)  debit Salaries Expense and credit Cash.

Question 14

The order of the steps to prepare the worksheet are:

Accepted Answer

A)  prepare the trial balance, complete adjustments, prepare the adjusted trial balance, extend the respective totals to the Income Statement and Balance Sheet columns. 
B)  complete the adjustments, prepare the adjusted trial balance, prepare the trial balance, extend the respective totals to the Income Statement and Balance Sheet columns. 
C)  extend the totals to the Income Statement and Balance Sheet columns, prepare the trial balance, complete the adjustments, prepare the adjusted trial balance. 
D)  prepare the adjusted trial balance, complete the adjustments, prepare the trial balance, extend the respective totals to the Income Statement and Balance Sheet columns. 
A)  prepare the trial balance, complete adjustments, prepare the adjusted trial balance, extend the respective totals to the Income Statement and Balance Sheet columns. 
B)  complete the adjustments, prepare the adjusted trial balance, prepare the trial balance, extend the respective totals to the Income Statement and Balance Sheet columns. 
C)  extend the totals to the Income Statement and Balance Sheet columns, prepare the trial balance, complete the adjustments, prepare the adjusted trial balance. 
D)  prepare the adjusted trial balance, complete the adjustments, prepare the trial balance, extend the respective totals to the Income Statement and Balance Sheet columns.

Question 15

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 16

Revenue is recorded only after cash is received, and expenses are recorded only when incurred.

Accepted Answer

A) True 
 B)False

Question 17

Bob purchased a truck for $53,000 with a residual value of $26,000 and a life expectancy of 5 years; using straight-line depreciation, the amount of the depreciation adjustment for the first year would be:

Accepted Answer

A)  $10,600. 
B)  $5,400. 
C)  $5,200. 
D)  $5,300. 
A)  $10,600. 
B)  $5,400. 
C)  $5,200. 
D)  $5,300.

Question 18

Using the following data, make the adjustments, and complete the worksheet for one month.
a. Equipment costing $750 with a residual value of $150 has an expected life of 12 months.
b. Accrued salaries of $100.
c. Supplies ledger balance $900, supplies used $400.

Accepted Answer

The answer of Using the following data, make the adjustments,...

Question 19

On a worksheet, the income statement debit column totals $11,000 and the credit column totals $9,500 following statements is correct?

Accepted Answer

A)  The company had a net loss of $1,500. 
B)  The company had a net income of $1,500. 
C)  The company's revenues were greater than expenses. 
D)  None of the above is correct. 
A)  The company had a net loss of $1,500. 
B)  The company had a net income of $1,500. 
C)  The company's revenues were greater than expenses. 
D)  None of the above is correct.

Question 20

Every amount needed for the income statement can be found in the debit column on the worksheet.

Accepted Answer

A) True 
 B)False

Exam 4: The Accounting Cycle Continued

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

A contra-asset is:

Simpson Golf Academy estimated depreciation on its building at $1,300. The adjusting entry for depreciation of the building would include:

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 book value of the equipment after the third year assuming straight-line depreciation? $ ________

Discuss the benefits of the worksheet. Explain how the financial reports are prepared from the worksheet.

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

At the start of this year 18 months of rent was paid. At the year's end, how will this affect the balance sheet?

Which of the following would cause total assets to decrease and total expenses to increase?

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?

Financial statements are prepared from the:

The worksheet is the first financial statement prepared.

The worksheet is a formal financial statement.

To record accrued salaries, you would:

The order of the steps to prepare the worksheet are:

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

Revenue is recorded only after cash is received, and expenses are recorded only when incurred.

Bob purchased a truck for $53,000 with a residual value of $26,000 and a life expectancy of 5 years; using straight-line depreciation, the amount of the depreciation adjustment for the first year would be:

Using the following data, make the adjustments, and complete the worksheet for one month. a. Equipment costing $750 with a residual value of $150 has an expected life of 12 months. b. Accrued salaries of $100. c. Supplies ledger balance $900, supplies used $400.

On a worksheet, the income statement debit column totals $11,000 and the credit column totals $9,500 following statements is correct?

Every amount needed for the income statement can be found in the debit column on the worksheet.

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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