Question 1

All of the following are reasons to adjust the account balances at the end of the period, except:

Accepted Answer

A)  to accurately report the assets on the balance sheet. 
B)  to report all revenues earned during the period. 
C)  to report all expenses incurred during the period. 
D)  to correct any errors made during the period. 
A)  to accurately report the assets on the balance sheet. 
B)  to report all revenues earned during the period. 
C)  to report all expenses incurred during the period. 
D)  to correct any errors made during the period.

Question 2

Define the expression accrued salaries.

Accepted Answer

Accrued salaries represent salaries that

Question 3

When making the adjustment for prepaid insurance, instead of writing off only the time that has passed, the entire policy was written off. This would:

Accepted Answer

A)  overstate the assets. 
B)  overstate the liabilities. 
C)  understate net income. 
D)  understate expenses. 
A)  overstate the assets. 
B)  overstate the liabilities. 
C)  understate net income. 
D)  understate expenses.

Question 4

On November 1, Duane paid $18,000 in advance for a year's rent. The November 30 adjusting entry for rent expense should include a:

Accepted Answer

A)  debit Rent Expense, $18,000. 
B)  credit Prepaid Rent Expense, $18,000. 
C)  debit Rent Expense, $1,500. 
D)  credit Cash, $1,500. 
A)  debit Rent Expense, $18,000. 
B)  credit Prepaid Rent Expense, $18,000. 
C)  debit Rent Expense, $1,500. 
D)  credit Cash, $1,500.

Question 5

Alcatraz Boat Tours showed store supplies available during the year, $800. If at the end of the month supplies used were $100, the adjusting entry would include a:

Accepted Answer

A)  debit to Supplies Expense for $100. 
B)  debit to Supplies Expense for $700. 
C)  credit to Supplies Expense for $100. 
D)  credit to Supplies Expense for $700. 
A)  debit to Supplies Expense for $100. 
B)  debit to Supplies Expense for $700. 
C)  credit to Supplies Expense for $100. 
D)  credit to Supplies Expense for $700.

Question 6

The adjustment to record supplies used during the period would be:

Accepted Answer

A)  debit Supplies; credit Supplies Expense. 
B)  debit Supplies Expense; credit Cash. 
C)  debit Supplies Expense; credit Supplies. 
D)  debit Supplies; credit Cash. 
A)  debit Supplies; credit Supplies Expense. 
B)  debit Supplies Expense; credit Cash. 
C)  debit Supplies Expense; credit Supplies. 
D)  debit Supplies; credit Cash.

Question 7

The worksheet contains a Depreciation Schedule of Assets.

Accepted Answer

A) True 
 B)False

Question 8

Sally's Spices accrued and unpaid wages are $2,000. Which of the following is the required adjusting entry?

Accepted Answer

A)  Debit Salaries Expense, $2,000; credit Salaries Payable, $2,000 
B)  Credit Salaries Expense, $2,000; debit Salaries Payable, $2,000 
C)  Debit Cash, $2,000; credit Salaries Expense, $2,000 
D)  Debit Salaries Payable, $2,000; credit Cash, $2,000 
A)  Debit Salaries Expense, $2,000; credit Salaries Payable, $2,000 
B)  Credit Salaries Expense, $2,000; debit Salaries Payable, $2,000 
C)  Debit Cash, $2,000; credit Salaries Expense, $2,000 
D)  Debit Salaries Payable, $2,000; credit Cash, $2,000

Question 9

Accumulated Depreciation is found on which of the following financial statements?

Accepted Answer

A)  Balance Sheet 
B)  Income Statement 
C)  Statement of Owner's Equity 
D)  All of these answers are correct. 
A)  Balance Sheet 
B)  Income Statement 
C)  Statement of Owner's Equity 
D)  All of these answers are correct.

Question 10

Provide the adjusting entries to account for the differences between the trial balance amounts and the adjusted trial balance amounts for the accounts shown. Only a partial trial balance is provided. Use T accounts to show the adjustments.

Accepted Answer

The answer of Provide the adjusting entries to account for...

Question 11

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

Question 12

The company pays $5,000 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

$13,000 [$

Question 13

Sam purchased a four-year insurance policy for $7,200. The adjusting entry for one month would include a:

Accepted Answer

A)  debit to Insurance Expense, $150. 
B)  credit to Cash, $150. 
C)  debit to Prepaid Insurance, $150. 
D)  credit to Insurance expense, $150. 
A)  debit to Insurance Expense, $150. 
B)  credit to Cash, $150. 
C)  debit to Prepaid Insurance, $150. 
D)  credit to Insurance expense, $150.

Question 14

On the formal income statement, the left column is the debit column, and the right column is the credit column.

Accepted Answer

A) True 
 B)False

Question 15

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 annual depreciation adjustment amount after the first year assuming straight-line depreciation?
$ ________

Accepted Answer

$4,800 [$5

Question 16

For each account listed, identify the category it belongs to, the normal balance (debit or credit), and the financial statement in which the account appears.

Accepted Answer

The answer of For each account listed, identify the category...

Question 17

The spreading or allocating of the cost of a long-term asset is called discounting.

Accepted Answer

A) True 
 B)False

Question 18

If the balance of supplies at the start of the month was $1,700 and at the end of the month you had $850 on hand, the adjustment for Supplies would be:

Accepted Answer

A)  $850. 
B)  $950. 
C)  $750. 
D)  $1,700. 
A)  $850. 
B)  $950. 
C)  $750. 
D)  $1,700.

Question 19

Assuming no investments were made during the period, the balance of Capital shown on the worksheet is:

Accepted Answer

A)  beginning capital. 
B)  ending capital. 
C)  net income. 
D)  equal to owner's withdrawals. 
A)  beginning capital. 
B)  ending capital. 
C)  net income. 
D)  equal to owner's withdrawals.

Question 20

What is the purpose of adjusting entries? Discuss the effect of not preparing adjusting entries on various accounts.

Accepted Answer

The purpose of adjusting entries is to a

Exam 4: The Accounting Cycle Continued

All of the following are reasons to adjust the account balances at the end of the period, except:

Define the expression accrued salaries.

When making the adjustment for prepaid insurance, instead of writing off only the time that has passed, the entire policy was written off. This would:

On November 1, Duane paid $18,000 in advance for a year's rent. The November 30 adjusting entry for rent expense should include a:

Alcatraz Boat Tours showed store supplies available during the year, $800. If at the end of the month supplies used were $100, the adjusting entry would include a:

The adjustment to record supplies used during the period would be:

The worksheet contains a Depreciation Schedule of Assets.

Sally's Spices accrued and unpaid wages are $2,000. Which of the following is the required adjusting entry?

Accumulated Depreciation is found on which of the following financial statements?

Provide the adjusting entries to account for the differences between the trial balance amounts and the adjusted trial balance amounts for the accounts shown. Only a partial trial balance is provided. Use T accounts to show the adjustments.

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 $5,000 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)? $ ________

Sam purchased a four-year insurance policy for $7,200. The adjusting entry for one month would include a:

On the formal income statement, the left column is the debit column, and the right column is the credit column.

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 annual depreciation adjustment amount after the first year assuming straight-line depreciation? $ ________

For each account listed, identify the category it belongs to, the normal balance (debit or credit), and the financial statement in which the account appears.

The spreading or allocating of the cost of a long-term asset is called discounting.

If the balance of supplies at the start of the month was $1,700 and at the end of the month you had $850 on hand, the adjustment for Supplies would be:

Assuming no investments were made during the period, the balance of Capital shown on the worksheet is:

What is the purpose of adjusting entries? Discuss the effect of not preparing adjusting entries on various accounts.

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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