Question 1

The total dollars in an Accumulated Depreciation account are:

Accepted Answer

A) added to the corresponding asset account. 
B) divided into the corresponding asset account. 
C) subtracted from the corresponding asset account. 
D) subtracted from the corresponding liability account. 
A) added to the corresponding asset account. 
B) divided into the corresponding asset account. 
C) subtracted from the corresponding asset account. 
D) subtracted from the corresponding liability account.

Question 2

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 3

Item costs that have been incurred,but not yet paid,are called:

Accepted Answer

A) referrals. 
B) deferrals. 
C) accruals. 
D) non-cash items. 
A) referrals. 
B) deferrals. 
C) accruals. 
D) non-cash items.

Question 4

Dogs R' Us walked 15 dogs a week this past month.They charge $10 per walk.The company's only expenses incurred during the month were $150 wages,$22 for waste bags,and $15 to repair a broken leash.The wages and leash replacement were paid during the month,but the waste bags were not.
What is Dogs R' Us' net income or loss for the month?

Accepted Answer

A) It is impossible to determine from the given information. 
B) $37 net loss 
C) $413 net income 
D) $450 net income 
A) It is impossible to determine from the given information. 
B) $37 net loss 
C) $413 net income 
D) $450 net income

Question 5

Which of the following is a TRUE statement regarding the Unearned Revenue account?

Accepted Answer

A) Unearned Revenue is accrued as the business provides goods or services. 
B) Unearned Revenue is expensed as the business provides goods or services. 
C) Unearned Revenue decreases as the business provides goods or services. 
D) Unearned Revenue increases as the business provides goods or services. 
A) Unearned Revenue is accrued as the business provides goods or services. 
B) Unearned Revenue is expensed as the business provides goods or services. 
C) Unearned Revenue decreases as the business provides goods or services. 
D) Unearned Revenue increases as the business provides goods or services.

Question 6

Of the following,which is NOT reported on the Balance Sheet?

Accepted Answer

A) cash 
B) equipment 
C) Depreciation Expense 
D) account payable 
A) cash 
B) equipment 
C) Depreciation Expense 
D) account payable

Question 7

The matching principle in accounting requires the matching of:

Accepted Answer

A) revenue earned with the assets used to produce the revenue. 
B) revenue earned with the assets used less the liabilities incurred. 
C) revenue earned with the liabilities used to produce the revenue. 
D) revenue earned with the expenses incurred to produce the revenue. 
A) revenue earned with the assets used to produce the revenue. 
B) revenue earned with the assets used less the liabilities incurred. 
C) revenue earned with the liabilities used to produce the revenue. 
D) revenue earned with the expenses incurred to produce the revenue.

Question 8

Respectively,Cash,Rent Expense and Accounts Payable are:

Accepted Answer

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

Question 9

Recording Wages Payable would be an example of a(n):

Accepted Answer

A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue. 
A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue.

Question 10

The adjusting entry to record $785 of revenues that have been earned but not yet recorded would be to:

Accepted Answer

A) debit Cash,$785;credit Service Revenue,$785. 
B) debit Unearned Revenue,$785;credit Service Revenue,$785. 
C) debit Service Revenue,$785;credit Accounts Receivable,$785. 
D) debit Accounts Receivable,$785;credit Service Revenue,$785. 
A) debit Cash,$785;credit Service Revenue,$785. 
B) debit Unearned Revenue,$785;credit Service Revenue,$785. 
C) debit Service Revenue,$785;credit Accounts Receivable,$785. 
D) debit Accounts Receivable,$785;credit Service Revenue,$785.

Question 11

Closing the revenue,expense,and dividend accounts:

Accepted Answer

A) yields the amount of net income or net loss for the period. 
B) yields the change in Retained Earnings for the period. 
C) yields the change in the permanent accounts for the period. 
D) yields the final balance in Stockholders' Equity for the period. 
A) yields the amount of net income or net loss for the period. 
B) yields the change in Retained Earnings for the period. 
C) yields the change in the permanent accounts for the period. 
D) yields the final balance in Stockholders' Equity for the period.

Question 12

Revenues are:

Accepted Answer

A) additions to Retained Earnings. 
B) subtractions from Retained Earnings. 
C) additions to dividends. 
D) subtractions from net income. 
A) additions to Retained Earnings. 
B) subtractions from Retained Earnings. 
C) additions to dividends. 
D) subtractions from net income.

Question 13

A company started the year with no supplies.During this year they bought $200 worth of supplies on account and later paid $150 of this debt.If there were $40 supplies left at the end of this year,what was the supply expense for the period?

Accepted Answer

A) $160 
B) $50 
C) $40 
D) $10 
A) $160 
B) $50 
C) $40 
D) $10

Question 14

Accounting for revenue on an accrual basis means that no entry of revenue is made until the cash is actually received.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following accounts would NOT appear on a post-closing trial balance?

Accepted Answer

A) Common Stock 
B) Dividends 
C) Sales tax Payable 
D) Accounts Receivable 
A) Common Stock 
B) Dividends 
C) Sales tax Payable 
D) Accounts Receivable

Question 16

The unadjusted trial balance for Supplies shows a $434 balance.If $132 of supplies were used during the period,the adjusted balance for Supplies would be a:

Accepted Answer

A) $302 credit. 
B) $302 debit. 
C) $132 debit. 
D) $132 credit. 
A) $302 credit. 
B) $302 debit. 
C) $132 debit. 
D) $132 credit.

Question 17

A machine with a cost of $15,000,a salvage value of $3,000 and expected life of 20 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,$50;credit Accumulated Depreciation,$50. 
B) debit Depreciation Expense,$250;credit Accumulated Depreciation,$250. 
C) debit Depreciation Expense,$200;credit Accumulated Depreciation,$200. 
D) debit Depreciation Expense,$150;credit Accumulated Depreciation,$150. 
A) debit Depreciation Expense,$50;credit Accumulated Depreciation,$50. 
B) debit Depreciation Expense,$250;credit Accumulated Depreciation,$250. 
C) debit Depreciation Expense,$200;credit Accumulated Depreciation,$200. 
D) debit Depreciation Expense,$150;credit Accumulated Depreciation,$150.

Question 18

The accounts that are NOT closed are:

Accepted Answer

A) Assets,Liabilities,and Revenues. 
B) Assets,Liabilities,and Stockholders' Equity. 
C) Assets,Liabilities,and Expenses. 
D) revenues,expenses and dividends. 
A) Assets,Liabilities,and Revenues. 
B) Assets,Liabilities,and Stockholders' Equity. 
C) Assets,Liabilities,and Expenses. 
D) revenues,expenses and dividends.

Question 19

Items for which we have received payment,but have not yet delivered the service,are called:

Accepted Answer

A) referrals. 
B) deferrals. 
C) accruals. 
D) non-cash items. 
A) referrals. 
B) deferrals. 
C) accruals. 
D) non-cash items.

Question 20

The majority of businesses normally end their fiscal year on:

Accepted Answer

A) June 30. 
B) September 30. 
C) December 31. 
D) some other date. 
A) June 30. 
B) September 30. 
C) December 31. 
D) some other date.

The total dollars in an Accumulated Depreciation account are:

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

Item costs that have been incurred,but not yet paid,are called:

Which of the following is a TRUE statement regarding the Unearned Revenue account?

Of the following,which is NOT reported on the Balance Sheet?

The matching principle in accounting requires the matching of:

Respectively,Cash,Rent Expense and Accounts Payable are:

Recording Wages Payable would be an example of a(n):

The adjusting entry to record $785 of revenues that have been earned but not yet recorded would be to:

Closing the revenue,expense,and dividend accounts:

Revenues are:

A company started the year with no supplies.During this year they bought $200 worth of supplies on account and later paid $150 of this debt.If there were $40 supplies left at the end of this year,what was the supply expense for the period?

Accounting for revenue on an accrual basis means that no entry of revenue is made until the cash is actually received.

Which of the following accounts would NOT appear on a post-closing trial balance?

The unadjusted trial balance for Supplies shows a $434 balance.If $132 of supplies were used during the period,the adjusted balance for Supplies would be a:

A machine with a cost of $15,000,a salvage value of $3,000 and expected life of 20 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:

The accounts that are NOT closed are:

Items for which we have received payment,but have not yet delivered the service,are called:

The majority of businesses normally end their fiscal year on:

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 total dollars in an Accumulated Depreciation account are:

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

Item costs that have been incurred,but not yet paid,are called:

Which of the following is a TRUE statement regarding the Unearned Revenue account?

Of the following,which is NOT reported on the Balance Sheet?

The matching principle in accounting requires the matching of:

Respectively,Cash,Rent Expense and Accounts Payable are:

Recording Wages Payable would be an example of a(n):

The adjusting entry to record $785 of revenues that have been earned but not yet recorded would be to:

Closing the revenue,expense,and dividend accounts:

Revenues are:

A company started the year with no supplies.During this year they bought $200 worth of supplies on account and later paid $150 of this debt.If there were $40 supplies left at the end of this year,what was the supply expense for the period?

Accounting for revenue on an accrual basis means that no entry of revenue is made until the cash is actually received.

Which of the following accounts would NOT appear on a post-closing trial balance?

The unadjusted trial balance for Supplies shows a $434 balance.If $132 of supplies were used during the period,the adjusted balance for Supplies would be a:

A machine with a cost of $15,000,a salvage value of $3,000 and expected life of 20 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:

The accounts that are NOT closed are:

Items for which we have received payment,but have not yet delivered the service,are called:

The majority of businesses normally end their fiscal year on:

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