Question 1

Fixed assets that are depreciated are sometimes called:

Accepted Answer

A) Accounts Payable. 
B) current assets. 
C) long-term assets. 
D) long-term liabilities. 
A) Accounts Payable. 
B) current assets. 
C) long-term assets. 
D) long-term liabilities.

Question 2

The unadjusted trial balance lists Supplies with a $1,078 balance. After taking an inventory of supplies, it was found that $590 were on hand. The adjustment to Supplies Expense is a:

Accepted Answer

A) $590 debit. 
B) $590 credit. 
C) $488 debit. 
D) $488 credit. 
A) $590 debit. 
B) $590 credit. 
C) $488 debit. 
D) $488 credit.

Question 3

A machine with a cost of $20,000, a salvage value of $8,000 and expected life of 15 years was purchased on September 1. For a calendar year company, the journal entry to record depreciation expense for the first year would be to:

Accepted Answer

A) debit Depreciation Expense, $67; credit Accumulated Depreciation, $67. 
B) debit Depreciation Expense, $333; credit Accumulated Depreciation, $333. 
C) debit Depreciation Expense, $267; credit Accumulated Depreciation, $267. 
D) debit Depreciation Expense, $200; credit Accumulated Depreciation, $200. 
A) debit Depreciation Expense, $67; credit Accumulated Depreciation, $67. 
B) debit Depreciation Expense, $333; credit Accumulated Depreciation, $333. 
C) debit Depreciation Expense, $267; credit Accumulated Depreciation, $267. 
D) debit Depreciation Expense, $200; credit Accumulated Depreciation, $200.

Question 4

Accumulated Depreciation is recorded in the Liabilities section of the Balance Sheet.

Accepted Answer

A) True 
 B)False

Question 5

Of the following, which are reported on the Balance Sheet?

Accepted Answer

A) Assets 
B) Revenues 
C) Expenses 
D) Net income or net loss 
A) Assets 
B) Revenues 
C) Expenses 
D) Net income or net loss

Question 6

Dividends are not included on an adjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 7

After preparing the adjusted trial balance, those figures are used to complete the Balance Sheet only.

Accepted Answer

A) True 
 B)False

Question 8

Express Barber gave 410 haircuts this past month. They charge $15 per haircut. Expenses incurred during the month were $3,900 wages, $318 utilities/water, and $270 shampoo/styling products. $2,900 in wages were paid during the month, the rest of the wages-along with the utilities and shampoo/styling products were not paid during the month. What is Express Barber's net income or loss for the month?

Accepted Answer

A) Not enough information provided to calculate net income or loss 
B) $1,662 net income 
C) $2,250 net income 
D) $3,250 net income 
A) Not enough information provided to calculate net income or loss 
B) $1,662 net income 
C) $2,250 net income 
D) $3,250 net income

Question 9

If a company forgets to make an adjusting entry relating to a deferred revenue, which of the following would NOT be true?

Accepted Answer

A) Liabilities would be overstated 
B) Revenues would be understated 
C) Retained earnings would be overstated 
D) Stockholders' Equity would be understated 
A) Liabilities would be overstated 
B) Revenues would be understated 
C) Retained earnings would be overstated 
D) Stockholders' Equity would be understated

Question 10

Closing entries are prepared for which of the following reasons?

Accepted Answer

A) To get the accounts ready for the next accounting period 
B) To get the worksheet ready for the next accounting period 
C) To get the journal ready for the next accounting period 
D) To get the financial statements ready for the next accounting period 
A) To get the accounts ready for the next accounting period 
B) To get the worksheet ready for the next accounting period 
C) To get the journal ready for the next accounting period 
D) To get the financial statements ready for the next accounting period

Question 11

Closing entries included debits to revenues for a total of $5,100, credits to expenses for a total of $3,200, and a credit to dividends for $700. The net change in Retained Earnings for the month was:

Accepted Answer

A) $1,200. 
B) $1,900. 
C) $3,200. 
D) $4,400. 
A) $1,200. 
B) $1,900. 
C) $3,200. 
D) $4,400.

Question 12

The adjusted trial balance will directly show the:

Accepted Answer

A) amount of the adjustments made to expense accounts only. 
B) final balance in the Retained Earnings account. 
C) amount of the adjustment made to each account. 
D) adjusted balances for every account affected by an adjusting entry. 
A) amount of the adjustments made to expense accounts only. 
B) final balance in the Retained Earnings account. 
C) amount of the adjustment made to each account. 
D) adjusted balances for every account affected by an adjusting entry.

Question 13

Expenses are always listed in alphabetical order on the Income Statement.

Accepted Answer

A) True 
 B)False

Question 14

Net income or net loss can be determined by the adjusted trial balance figures.

Accepted Answer

A) True 
 B)False

Question 15

The unadjusted trial balance shows Accumulated Depreciation-Computer with a credit balance of $220. After determining depreciation expense is $125, the adjusted balance in the Accumulated Depreciation account for the computer will be a:

Accepted Answer

A) $125 debit. 
B) $220 credit. 
C) $345 credit. 
D) $95 debit. 
A) $125 debit. 
B) $220 credit. 
C) $345 credit. 
D) $95 debit.

Question 16

Respectively, dividends, revenues, and expenses are:

Accepted Answer

A) temporary, permanent, and temporary accounts. 
B) temporary, temporary, and permanent accounts. 
C) all temporary accounts. 
D) all permanent accounts. 
A) temporary, permanent, and temporary accounts. 
B) temporary, temporary, and permanent accounts. 
C) all temporary accounts. 
D) all permanent accounts.

Question 17

Which of the following accounts are NOT closed?

Accepted Answer

A) Rent Expense 
B) rent revenue 
C) Prepaid Rent 
D) both A and B 
A) Rent Expense 
B) rent revenue 
C) Prepaid Rent 
D) both A and B

Question 18

The Income Statement that is prepared from the adjusted trial balance begins with the:

Accepted Answer

A) first asset account listed on the adjusted trial balance. 
B) first liability account listed on the adjusted trial balance. 
C) first revenue account listed on the adjusted trial balance. 
D) first expense account listed on the adjusted trial balance. 
A) first asset account listed on the adjusted trial balance. 
B) first liability account listed on the adjusted trial balance. 
C) first revenue account listed on the adjusted trial balance. 
D) first expense account listed on the adjusted trial balance.

Question 19

Annual depreciation on equipment at Charmed, Inc.is $1,800. The adjusting entry to record one month's worth of depreciation would be:

Accepted Answer

A) Debit Depreciation Expense $150, credit Cash $150 
B) Debit Depreciation Expense $150, credit Accumulated Depreciation $150 
C) Debit Depreciation Expense $1,800 credit Cash $1,800 
D) Debit Depreciation Expense $1,800, credit Accumulated Depreciation $1,800 
A) Debit Depreciation Expense $150, credit Cash $150 
B) Debit Depreciation Expense $150, credit Accumulated Depreciation $150 
C) Debit Depreciation Expense $1,800 credit Cash $1,800 
D) Debit Depreciation Expense $1,800, credit Accumulated Depreciation $1,800

Question 20

The unadjusted trial balance for Supplies shows a $634 balance. If $532 of supplies were used during the period, the adjusted balance for Supplies would be a:

Accepted Answer

A) $102 credit. 
B) $102 debit. 
C) $532 debit. 
D) $532 credit. 
A) $102 credit. 
B) $102 debit. 
C) $532 debit. 
D) $532 credit.

Fixed assets that are depreciated are sometimes called:

The unadjusted trial balance lists Supplies with a $1,078 balance. After taking an inventory of supplies, it was found that $590 were on hand. The adjustment to Supplies Expense is a:

A machine with a cost of $20,000, a salvage value of $8,000 and expected life of 15 years was purchased on September 1. For a calendar year company, the journal entry to record depreciation expense for the first year would be to:

Accumulated Depreciation is recorded in the Liabilities section of the Balance Sheet.

Of the following, which are reported on the Balance Sheet?

Dividends are not included on an adjusted trial balance.

After preparing the adjusted trial balance, those figures are used to complete the Balance Sheet only.

If a company forgets to make an adjusting entry relating to a deferred revenue, which of the following would NOT be true?

Closing entries are prepared for which of the following reasons?

Closing entries included debits to revenues for a total of $5,100, credits to expenses for a total of $3,200, and a credit to dividends for $700. The net change in Retained Earnings for the month was:

The adjusted trial balance will directly show the:

Expenses are always listed in alphabetical order on the Income Statement.

Net income or net loss can be determined by the adjusted trial balance figures.

The unadjusted trial balance shows Accumulated Depreciation-Computer with a credit balance of $220. After determining depreciation expense is $125, the adjusted balance in the Accumulated Depreciation account for the computer will be a:

Respectively, dividends, revenues, and expenses are:

Which of the following accounts are NOT closed?

The Income Statement that is prepared from the adjusted trial balance begins with the:

Annual depreciation on equipment at Charmed, Inc.is $1,800. The adjusting entry to record one month's worth of depreciation would be:

The unadjusted trial balance for Supplies shows a $634 balance. If $532 of supplies were used during the period, the adjusted balance for Supplies would be a:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

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Exam 3: Adjusting and Closing Entries

Fixed assets that are depreciated are sometimes called:

The unadjusted trial balance lists Supplies with a $1,078 balance. After taking an inventory of supplies, it was found that $590 were on hand. The adjustment to Supplies Expense is a:

A machine with a cost of $20,000, a salvage value of $8,000 and expected life of 15 years was purchased on September 1. For a calendar year company, the journal entry to record depreciation expense for the first year would be to:

Accumulated Depreciation is recorded in the Liabilities section of the Balance Sheet.

Of the following, which are reported on the Balance Sheet?

Dividends are not included on an adjusted trial balance.

After preparing the adjusted trial balance, those figures are used to complete the Balance Sheet only.

If a company forgets to make an adjusting entry relating to a deferred revenue, which of the following would NOT be true?

Closing entries are prepared for which of the following reasons?

Closing entries included debits to revenues for a total of $5,100, credits to expenses for a total of $3,200, and a credit to dividends for $700. The net change in Retained Earnings for the month was:

The adjusted trial balance will directly show the:

Expenses are always listed in alphabetical order on the Income Statement.

Net income or net loss can be determined by the adjusted trial balance figures.

The unadjusted trial balance shows Accumulated Depreciation-Computer with a credit balance of $220. After determining depreciation expense is $125, the adjusted balance in the Accumulated Depreciation account for the computer will be a:

Respectively, dividends, revenues, and expenses are:

Which of the following accounts are NOT closed?

The Income Statement that is prepared from the adjusted trial balance begins with the:

Annual depreciation on equipment at Charmed, Inc.is $1,800. The adjusting entry to record one month's worth of depreciation would be:

The unadjusted trial balance for Supplies shows a $634 balance. If $532 of supplies were used during the period, the adjusted balance for Supplies would be a:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters