Question 1

The value of an asset after all allowable depreciation has been taken is called:

Accepted Answer

A) depreciable value. 
B) market value. 
C) salvage value. 
D) trade-in value. 
A) depreciable value. 
B) market value. 
C) salvage value. 
D) trade-in value.

Question 2

During a recent week,incurred wages were $700.However,$280 of the wages had not been paid.The adjusting entry for wages would be:

Accepted Answer

A) debit Wages Payable,$280;credit Wages Expense,$280. 
B) debit Wages Expense,$280;credit Wages Payable,$280. 
C) debit Wages Payable,420;credit Wages Expense,$420. 
D) debit Wages Expense,$420;credit Wages Payable,$420. 
A) debit Wages Payable,$280;credit Wages Expense,$280. 
B) debit Wages Expense,$280;credit Wages Payable,$280. 
C) debit Wages Payable,420;credit Wages Expense,$420. 
D) debit Wages Expense,$420;credit Wages Payable,$420.

Question 3

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 4

Preparing the post-closing trial balance is the ________ step in the accounting cycle.

Accepted Answer

A) first 
B) second 
C) third 
D) last 
A) first 
B) second 
C) third 
D) last

Question 5

Dividends are not included on an adjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 6

The account to which dividends are closed is called:

Accepted Answer

A) Cash. 
B) Retained Earnings. 
C) Common Stock. 
D) Sales. 
A) Cash. 
B) Retained Earnings. 
C) Common Stock. 
D) Sales.

Question 7

Which of the following do NOT appear on the post-closing trial balance?

Accepted Answer

A) Dividends 
B) Inventory 
C) Land 
D) Dividends Payable 
A) Dividends 
B) Inventory 
C) Land 
D) Dividends Payable

Question 8

Land must be adjusted for depreciation at the end of the period.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following accounts would NOT be adjusted?

Accepted Answer

A) Accumulated Depreciation 
B) Cash 
C) Depreciation Expense 
D) Wages 
A) Accumulated Depreciation 
B) Cash 
C) Depreciation Expense 
D) Wages

Question 10

Of the following,which would be reported on the Income Statement?

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 11

The adjusted trial balance shows:

Accepted Answer

A) accounts that may still be out of balance. 
B) revenues and expense amounts only. 
C) numbers ready to be transferred to the financial statements. 
D) assets,liabilities and Stockholders' Equity amounts only. 
A) accounts that may still be out of balance. 
B) revenues and expense amounts only. 
C) numbers ready to be transferred to the financial statements. 
D) assets,liabilities and Stockholders' Equity amounts only.

Question 12

Because inventories are high,Wal-Mart should end its fiscal year in either November or December.

Accepted Answer

A) True 
 B)False

Question 13

If revenues are recognized and recorded when earned,the company is using the:

Accepted Answer

A) cash basis of accounting. 
B) accrual basis of accounting. 
C) adjustment basis of accounting. 
D) the expense basis of accounting. 
A) cash basis of accounting. 
B) accrual basis of accounting. 
C) adjustment basis of accounting. 
D) the expense basis of accounting.

Question 14

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 15

Another name for "book value" is:

Accepted Answer

A) Accumulated Depreciation. 
B) carrying value. 
C) market value. 
D) Depreciation Expense. 
A) Accumulated Depreciation. 
B) carrying value. 
C) market value. 
D) Depreciation Expense.

Question 16

Prepaid expenses are also called:

Accepted Answer

A) accrued expenses. 
B) deferred expenses. 
C) both A and B. 
D) neither A or B. 
A) accrued expenses. 
B) deferred expenses. 
C) both A and B. 
D) neither A or B.

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

Safety First Supply Company purchased a 2-year insurance policy for $2,500.What would the adjusting entry be at the end of the first year?

Accepted Answer

A) Debit Insurance Expense $2,500,credit Prepaid Insurance $2,500 
B) Debit Insurance Expense $2,500,credit Cash $2,500 
C) Debit Insurance Expense $1,250,credit Prepaid Insurance $1,250 
D) Debit Insurance Expense $1,250,credit Cash $1,250 
A) Debit Insurance Expense $2,500,credit Prepaid Insurance $2,500 
B) Debit Insurance Expense $2,500,credit Cash $2,500 
C) Debit Insurance Expense $1,250,credit Prepaid Insurance $1,250 
D) Debit Insurance Expense $1,250,credit Cash $1,250

Question 19

Closing entries included debits to revenues for a total of $5,000,credits to expenses for a total of $3,000,and a credit to dividends for $1,000.The net change in Retained Earnings for the month was:

Accepted Answer

A) $1,000. 
B) $2,000. 
C) $3,000. 
D) $4,000. 
A) $1,000. 
B) $2,000. 
C) $3,000. 
D) $4,000.

Question 20

The adjusted balance for Prepaid Insurance is a $724 debit.Insurance Expense for the period was $1,136.What was the balance for Prepaid Insurance on the unadjusted trial balance?

Accepted Answer

A) $412 debit 
B) $412 credit 
C) $1,860 debit 
D) $1,136 debit 
A) $412 debit 
B) $412 credit 
C) $1,860 debit 
D) $1,136 debit

The value of an asset after all allowable depreciation has been taken is called:

During a recent week,incurred wages were $700.However,$280 of the wages had not been paid.The adjusting entry for wages would be:

Fixed assets that are depreciated are sometimes called:

Preparing the post-closing trial balance is the ________ step in the accounting cycle.

Dividends are not included on an adjusted trial balance.

The account to which dividends are closed is called:

Which of the following do NOT appear on the post-closing trial balance?

Land must be adjusted for depreciation at the end of the period.

Which of the following accounts would NOT be adjusted?

Of the following,which would be reported on the Income Statement?

The adjusted trial balance shows:

Because inventories are high,Wal-Mart should end its fiscal year in either November or December.

If revenues are recognized and recorded when earned,the company is using the:

Respectively,dividends,revenues,and expenses are:

Another name for "book value" is:

Prepaid expenses are also called:

Which of the following accounts are NOT closed?

Safety First Supply Company purchased a 2-year insurance policy for $2,500.What would the adjusting entry be at the end of the first year?

Closing entries included debits to revenues for a total of $5,000,credits to expenses for a total of $3,000,and a credit to dividends for $1,000.The net change in Retained Earnings for the month was:

The adjusted balance for Prepaid Insurance is a $724 debit.Insurance Expense for the period was $1,136.What was the balance for Prepaid Insurance on the unadjusted trial balance?

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

The value of an asset after all allowable depreciation has been taken is called:

During a recent week,incurred wages were $700.However,$280 of the wages had not been paid.The adjusting entry for wages would be:

Fixed assets that are depreciated are sometimes called:

Preparing the post-closing trial balance is the ________ step in the accounting cycle.

Dividends are not included on an adjusted trial balance.

The account to which dividends are closed is called:

Which of the following do NOT appear on the post-closing trial balance?

Land must be adjusted for depreciation at the end of the period.

Which of the following accounts would NOT be adjusted?

Of the following,which would be reported on the Income Statement?

The adjusted trial balance shows:

Because inventories are high,Wal-Mart should end its fiscal year in either November or December.

If revenues are recognized and recorded when earned,the company is using the:

Respectively,dividends,revenues,and expenses are:

Another name for "book value" is:

Prepaid expenses are also called:

Which of the following accounts are NOT closed?

Safety First Supply Company purchased a 2-year insurance policy for $2,500.What would the adjusting entry be at the end of the first year?

Closing entries included debits to revenues for a total of $5,000,credits to expenses for a total of $3,000,and a credit to dividends for $1,000.The net change in Retained Earnings for the month was:

The adjusted balance for Prepaid Insurance is a $724 debit.Insurance Expense for the period was $1,136.What was the balance for Prepaid Insurance on the unadjusted trial balance?

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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