Question 1

The amount for withdrawals, to be used on the Statement of Owner's Equity, would be obtained from:

Accepted Answer

A)  the worksheet in the balance sheet debit column. 
B)  the worksheet in the income statement credit column. 
C)  the worksheet in the income statement debit column. 
D)  the worksheet in the balance sheet credit column. 
A)  the worksheet in the balance sheet debit column. 
B)  the worksheet in the income statement credit column. 
C)  the worksheet in the income statement debit column. 
D)  the worksheet in the balance sheet credit column.

Question 2

On January 1 the Prepaid Insurance account had a balance of $6,000 that represented 6 months' worth of advance payment. It is now the end of March and there have been no adjustments to the account balance. Determine the amount of expense to record at the end of March.
$ ________

Accepted Answer

$3,000 [(6

Question 3

The accounts added below the trial balance, on the worksheet, are always increasing.

Accepted Answer

A) True 
 B)False

Question 4

The entry to record the expiration of part of the Prepaid Rent Expense will:

Accepted Answer

A)  decrease total liabilities and increase total expenses at the end of the month. 
B)  decrease total assets and decrease total expenses at the end of the month. 
C)  decrease total assets and increase total expenses at the end of the month. 
D)  increase total revenue and decrease total expenses at the end of the month. 
A)  decrease total liabilities and increase total expenses at the end of the month. 
B)  decrease total assets and decrease total expenses at the end of the month. 
C)  decrease total assets and increase total expenses at the end of the month. 
D)  increase total revenue and decrease total expenses at the end of the month.

Question 5

The Accumulated Depreciation will appear in which of the following worksheet statement columns?

Accepted Answer

A)  The Income Statement debit 
B)  The Income Statement credit 
C)  The Balance Sheet debit 
D)  The Balance Sheet credit 
A)  The Income Statement debit 
B)  The Income Statement credit 
C)  The Balance Sheet debit 
D)  The Balance Sheet credit

Question 6

Show which columns would contain the adjusted balances by placing an "x" in the appropriate column. Assume all accounts have normal balances.

Accepted Answer

The answer of Show which columns would contain the adjusted...

Question 7

Rent expired at the end of an accounting period requires an adjustment.

Accepted Answer

A) True 
 B)False

Question 8

The original cost of equipment is reduced by the amount of Depreciation Expense.

Accepted Answer

A) True 
 B)False

Question 9

Accumulated Depreciation is a contra-asset account found on the income statement.

Accepted Answer

A) True 
 B)False

Question 10

A form used to organize and check data before preparing financial reports is known as a(n):

Accepted Answer

A)  trial balance. 
B)  income statement. 
C)  ledger. 
D)  worksheet. 
A)  trial balance. 
B)  income statement. 
C)  ledger. 
D)  worksheet.

Question 11

An important function of the worksheet is for the accountant to find and correct errors before the financial statements are prepared.

Accepted Answer

A) True 
 B)False

Question 12

The adjustment for accrued wages included the entire pay period, some of which occurs next month. This would:

Accepted Answer

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

Question 13

When Balance Sheet credits exceed the debits on the worksheet:

Accepted Answer

A)  a net loss has occurred. 
B)  a net income has occurred. 
C)  an error has been made. 
D)  the income statement credits exceed the debits on the worksheet. 
A)  a net loss has occurred. 
B)  a net income has occurred. 
C)  an error has been made. 
D)  the income statement credits exceed the debits on the worksheet.

Question 14

Which of the following accounts would NOT appear on the Balance Sheet?

Accepted Answer

A)  Accumulated Depreciation 
B)  Rent Expense 
C)  Equipment 
D)  Cash 
A)  Accumulated Depreciation 
B)  Rent Expense 
C)  Equipment 
D)  Cash

Question 15

The accrual of an expense was not recorded. This would:

Accepted Answer

A)  overstate assets and overstate liabilities. 
B)  overstate expenses and understate liabilities. 
C)  understate expenses and overstate liabilities. 
D)  understate expenses and understate liabilities. 
A)  overstate assets and overstate liabilities. 
B)  overstate expenses and understate liabilities. 
C)  understate expenses and overstate liabilities. 
D)  understate expenses and understate liabilities.

Question 16

When an asset expires or is used up, it becomes revenue.

Accepted Answer

A) True 
 B)False

Question 17

The Sarbanes-Oxley Act:

Accepted Answer

A)  requires a minimum cash balance. 
B)  does not allow adjusting entries. 
C)  states the need to have accurate financial reports. 
D)  does not allow the use of a worksheet. 
A)  requires a minimum cash balance. 
B)  does not allow adjusting entries. 
C)  states the need to have accurate financial reports. 
D)  does not allow the use of a worksheet.

Question 18

Accumulated Depreciation is a Liability account.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following accounts would most likely be depreciated?

Accepted Answer

A)  Equipment 
B)  Office Supplies 
C)  Investments 
D)  Prepaid Rent Expense 
A)  Equipment 
B)  Office Supplies 
C)  Investments 
D)  Prepaid Rent Expense

Question 20

Given the income statement columns and the balance sheet columns of the worksheet, prepare an income statement for the month of October 31, 20XX, for the Riley company.

Accepted Answer

The answer of Given the income statement columns and the...

Exam 4: The Accounting Cycle Continued

The amount for withdrawals, to be used on the Statement of Owner's Equity, would be obtained from:

On January 1 the Prepaid Insurance account had a balance of $6,000 that represented 6 months' worth of advance payment. It is now the end of March and there have been no adjustments to the account balance. Determine the amount of expense to record at the end of March. $ ________

The accounts added below the trial balance, on the worksheet, are always increasing.

The entry to record the expiration of part of the Prepaid Rent Expense will:

The Accumulated Depreciation will appear in which of the following worksheet statement columns?

Show which columns would contain the adjusted balances by placing an "x" in the appropriate column. Assume all accounts have normal balances.

Rent expired at the end of an accounting period requires an adjustment.

The original cost of equipment is reduced by the amount of Depreciation Expense.

Accumulated Depreciation is a contra-asset account found on the income statement.

A form used to organize and check data before preparing financial reports is known as a(n):

An important function of the worksheet is for the accountant to find and correct errors before the financial statements are prepared.

The adjustment for accrued wages included the entire pay period, some of which occurs next month. This would:

When Balance Sheet credits exceed the debits on the worksheet:

Which of the following accounts would NOT appear on the Balance Sheet?

The accrual of an expense was not recorded. This would:

When an asset expires or is used up, it becomes revenue.

The Sarbanes-Oxley Act:

Accumulated Depreciation is a Liability account.

Which of the following accounts would most likely be depreciated?

Given the income statement columns and the balance sheet columns of the worksheet, prepare an income statement for the month of October 31, 20XX, for the Riley company.

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

Filters