Question 1

Which of the following accounts would appear on the Balance Sheet?

Accepted Answer

A)  Accumulated Depreciation 
B)  Depreciation Expense 
C)  Delivery Truck 
D)  Both B and C. 
A)  Accumulated Depreciation 
B)  Depreciation Expense 
C)  Delivery Truck 
D)  Both B and C.

Question 2

On the worksheet, the Balance Sheet debit column totaled $1,400 and the credit column totaled $2,000. What is the amount of Net Loss?
$ ________

Accepted Answer

$600 [$2,0

Question 3

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

Accepted Answer

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

Question 4

On November 30, the balance in the Supplies account was $500. During December additional supplies were purchased of $200. On December 31, there was $200 worth of Supplies on hand. What would be the adjustment for the month of December for Supplies?
$ ________

Accepted Answer

$500 [$500

Question 5

What are the differences between depreciation expense and accumulated depreciation?

Accepted Answer

The differences between depreciation exp

Question 6

Which of the following would cause a contra-asset to be credited and an expense debited?

Accepted Answer

A)  Recording an accrued expense 
B)  Recording the consumption of supplies 
C)  Recording the building depreciation 
D)  All of the above would have that effect. 
A)  Recording an accrued expense 
B)  Recording the consumption of supplies 
C)  Recording the building depreciation 
D)  All of the above would have that effect.

Question 7

Historical cost is the same as:

Accepted Answer

A)  residual value. 
B)  original cost. 
C)  depreciable value. 
D)  salvage value. 
A)  residual value. 
B)  original cost. 
C)  depreciable value. 
D)  salvage value.

Question 8

The amount of supplies used during the period would be shown in the adjustment columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 9

Equipment with a cost of $152,000 has an accumulated depreciation of $59,000. What is the historical cost of the equipment?

Accepted Answer

A)  $152,000 
B)  $59,000 
C)  $211,000 
D)  $93,000 
A)  $152,000 
B)  $59,000 
C)  $211,000 
D)  $93,000

Question 10

The estimated value of an item at the end of its useful life is:

Accepted Answer

A)  depreciation expense. 
B)  residual value. 
C)  accumulated depreciation. 
D)  book value. 
A)  depreciation expense. 
B)  residual value. 
C)  accumulated depreciation. 
D)  book value.

Question 11

Which of the following transactions would result in an accrual?

Accepted Answer

A)  Salary expense has been incurred but unpaid. 
B)  Rent expired for the month. 
C)  Supplies used during the accounting period. 
D)  Owner's withdrawals. 
A)  Salary expense has been incurred but unpaid. 
B)  Rent expired for the month. 
C)  Supplies used during the accounting period. 
D)  Owner's withdrawals.

Question 12

Depreciation Expense is debited when recording the depreciation for the period.

Accepted Answer

A) True 
 B)False

Question 13

Original cost of equipment is adjusted at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 14

The beginning capital balance used on the Statement of Owner's Equity is obtained from:

Accepted Answer

A)  the worksheet in the balance sheet credit column. 
B)  the worksheet in the income statement credit column. 
C)  the amount calculated on the statement of owner's equity. 
D)  the worksheet in the balance sheet debit column. 
A)  the worksheet in the balance sheet credit column. 
B)  the worksheet in the income statement credit column. 
C)  the amount calculated on the statement of owner's equity. 
D)  the worksheet in the balance sheet debit column.

Question 15

On a worksheet, the balance sheet debit column total is $1,000 and the credit column total is $2,200. Which of the following statements is correct?

Accepted Answer

A)  The company had a net income of $1,200. 
B)  The company had a loss of $1,200. 
C)  The company's expenses were greater than revenues. 
D)  There is a $1,200 error. 
A)  The company had a net income of $1,200. 
B)  The company had a loss of $1,200. 
C)  The company's expenses were greater than revenues. 
D)  There is a $1,200 error.

Question 16

After the adjustment for depreciation has been made, the original cost of the equipment:

Accepted Answer

A)  increases with a credit. 
B)  decreases with a debit. 
C)  remains the same. 
D)  is transferred to a liability. 
A)  increases with a credit. 
B)  decreases with a debit. 
C)  remains the same. 
D)  is transferred to a liability.

Question 17

To compute net income or net loss, the debit and credit columns of the income statement section of the worksheet are totaled, and the difference is placed on the smaller side.

Accepted Answer

A) True 
 B)False

Question 18

NOT recording the Prepaid Rent Expense used causes:

Accepted Answer

A)  assets to be too low. 
B)  liabilities to be too high. 
C)  expenses to be too low. 
D)  revenue to be too low. 
A)  assets to be too low. 
B)  liabilities to be too high. 
C)  expenses to be too low. 
D)  revenue to be too low.

Question 19

The adjustment for depreciation was credited to Equipment and debited to Depreciation Expense. This would:

Accepted Answer

A)  overstate the assets. 
B)  understate the assets. 
C)  overstate net income. 
D)  None of these is correct. 
A)  overstate the assets. 
B)  understate the assets. 
C)  overstate net income. 
D)  None of these is correct.

Question 20

As accumulated depreciation is recorded, the net book value:

Accepted Answer

A)  increases. 
B)  decreases. 
C)  remains the same. 
D)  equals zero. 
A)  increases. 
B)  decreases. 
C)  remains the same. 
D)  equals zero.

Exam 4: The Accounting Cycle Continued

Which of the following accounts would appear on the Balance Sheet?

On the worksheet, the Balance Sheet debit column totaled $1,400 and the credit column totaled $2,000. What is the amount of Net Loss? $ ________

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

On November 30, the balance in the Supplies account was $500. During December additional supplies were purchased of $200. On December 31, there was $200 worth of Supplies on hand. What would be the adjustment for the month of December for Supplies? $ ________

What are the differences between depreciation expense and accumulated depreciation?

Which of the following would cause a contra-asset to be credited and an expense debited?

Historical cost is the same as:

The amount of supplies used during the period would be shown in the adjustment columns of the worksheet.

Equipment with a cost of $152,000 has an accumulated depreciation of $59,000. What is the historical cost of the equipment?

The estimated value of an item at the end of its useful life is:

Which of the following transactions would result in an accrual?

Depreciation Expense is debited when recording the depreciation for the period.

Original cost of equipment is adjusted at the end of the accounting period.

The beginning capital balance used on the Statement of Owner's Equity is obtained from:

On a worksheet, the balance sheet debit column total is $1,000 and the credit column total is $2,200. Which of the following statements is correct?

After the adjustment for depreciation has been made, the original cost of the equipment:

To compute net income or net loss, the debit and credit columns of the income statement section of the worksheet are totaled, and the difference is placed on the smaller side.

NOT recording the Prepaid Rent Expense used causes:

The adjustment for depreciation was credited to Equipment and debited to Depreciation Expense. This would:

As accumulated depreciation is recorded, the net book value:

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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