Question 1

What type of account is Salaries Payable?

Accepted Answer

A) Asset 
B) Expense 
C) Liability 
D) Owner's equity 
A) Asset 
B) Expense 
C) Liability 
D) Owner's equity

Question 2

As accumulated depreciation is recorded,the book value:

Accepted Answer

A) increases. 
B) decreases. 
C) remains the same. 
D) is closed out. 
A) increases. 
B) decreases. 
C) remains the same. 
D) is closed out.

Question 3

The debits must equal credits on the adjusted trial balance columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following accounts would appear on the Income Statement?

Accepted Answer

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

Question 5

Discuss the benefits of the worksheet.Explain how the financial reports are prepared from the worksheet.

Accepted Answer

An accountant uses a worksheet like a sc

Question 6

Determine the ending owner's equity of a business having a beginning owner's equity of $10,200,withdrawals of $1,200,and net income of $8,000.
$ ________

Accepted Answer

$17,000 [$

Question 7

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

Question 8

If an adjustment to Supplies is not made,the balance in the Supplies account will be too low.

Accepted Answer

A) True 
 B)False

Question 9

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) None of these answers are correct. 
A) depreciation expense. 
B) residual value. 
C) accumulated depreciation. 
D) None of these answers are correct.

Question 10

The cost of an asset less accumulated depreciation equals:

Accepted Answer

A) residual value. 
B) book value. 
C) depreciation expense. 
D) None of these answers are correct. 
A) residual value. 
B) book value. 
C) depreciation expense. 
D) None of these answers are correct.

Question 11

Show which columns would contain the adjusted balances by placing an "x" in the appropriate column.Assume all accounts have normal balances.
 $\begin{array}{llcc}
&  \text { Income Statement } &&\text {Balance Sheet}   \
 \text { Debit } &\text {Credit}&\text { Debit }& \text {Credit}\
 \text {  } &\
 \text {  } &\
 \text {  } &\
 \text {  } &\
\end{array}$

Accepted Answer

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

Question 12

The adjustment to record supplies used during the period would be:

Accepted Answer

A) debit Supplies; credit Supplies Expense. 
B) debit Supplies Expense; credit Cash. 
C) debit Supplies Expense; credit Supplies. 
D) debit Supplies; credit Cash. 
A) debit Supplies; credit Supplies Expense. 
B) debit Supplies Expense; credit Cash. 
C) debit Supplies Expense; credit Supplies. 
D) debit Supplies; credit Cash.

Question 13

On November 1,Duane paid $24,000 in advance for a year's rent.The November 30 adjusting entry for rent expense should include a:

Accepted Answer

A) debit Rent Expense,$24,000. 
B) credit Prepaid Rent,$24,000 
C) debit Rent Expense,$2,000. 
D) credit Cash,$2,000. 
A) debit Rent Expense,$24,000. 
B) credit Prepaid Rent,$24,000 
C) debit Rent Expense,$2,000. 
D) credit Cash,$2,000.

Question 14

The depreciation of equipment will require an adjustment that results in:

Accepted Answer

A) total assets increasing and total expenses increasing. 
B) total assets increasing and total expenses decreasing. 
C) total assets and expenses decreasing. 
D) total assets decreasing and total expenses increasing. 
A) total assets increasing and total expenses increasing. 
B) total assets increasing and total expenses decreasing. 
C) total assets and expenses decreasing. 
D) total assets decreasing and total expenses increasing.

Question 15

At the start of this year 18 months rent was paid.At the year's end,how will this affect the balance sheet?

Accepted Answer

A) Assets will be decreased. 
B) Liabilities will be increased. 
C) Owner's equity will be increased. 
D) This has no effect on the period end balance sheet. 
A) Assets will be decreased. 
B) Liabilities will be increased. 
C) Owner's equity will be increased. 
D) This has no effect on the period end balance sheet.

Question 16

Using the following data,make the adjustments,and complete the worksheet for one month.
a.Equipment costing $750 with a residual value of $150 has an expected life of 12 months.
b.Accrued salaries of $100.
c.Supplies ledger balance $900,supplies used $400.

Accepted Answer

The answer of Using the following data,make the adjustments,and complete...

Question 17

For each account listed,identify the category it belongs to,the normal balance (debit or credit),and the financial statement in which the account appears.
 $$\begin{array} { | l | c | c | c | } 
\hline \text { Account } & \text { Category } & \text { Normal Balance } & \begin{array} { c } 
\text { Financial } \
\text { Statement }
\end{array} \
\hline \text { 0. Cash } & \text { Asset } & \text { Debit } & \text { Balance Sheet } \
\hline \text { I Capital, Beginning } & & & \
\hline \text { 2. Salaries Expense } & & & \
\hline \text { 3. Salaries Payable } & & & \
\hline \text { 4. Accounts Receivable } & & & \
\hline \text { 5. Prepaid Insurance } & & & \
\hline \text { 6. Withdrawals } & & & \
\hline \text { 7. Service Fees } & & & \
\hline \text { 8. Accounts Payable } & & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | l | l | l | l | } 
\

Question 18

Original cost of equipment is not adjusted on the worksheet.

Accepted Answer

A) True 
 B)False

Question 19

The adjustment that is made to allocate the cost of a building over its expected life is called:

Accepted Answer

A) depreciation. 
B) residual value. 
C) accumulated depreciation. 
D) None of these answers are correct. 
A) depreciation. 
B) residual value. 
C) accumulated depreciation. 
D) None of these answers are correct.

Question 20

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

Accepted Answer

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

Exam 4: The Accounting Cycle Continued

What type of account is Salaries Payable?

As accumulated depreciation is recorded,the book value:

The debits must equal credits on the adjusted trial balance columns of the worksheet.

Which of the following accounts would appear on the Income Statement?

Discuss the benefits of the worksheet.Explain how the financial reports are prepared from the worksheet.

Determine the ending owner's equity of a business having a beginning owner's equity of $10,200,withdrawals of $1,200,and net income of $8,000. $ ________

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

If an adjustment to Supplies is not made,the balance in the Supplies account will be too low.

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

The cost of an asset less accumulated depreciation equals:

Show which columns would contain the adjusted balances by placing an "x" in the appropriate column.Assume all accounts have normal balances. Income Statement Balance Sheet Debit Credit Debit Credit

The adjustment to record supplies used during the period would be:

On November 1,Duane paid $24,000 in advance for a year's rent.The November 30 adjusting entry for rent expense should include a:

The depreciation of equipment will require an adjustment that results in:

At the start of this year 18 months rent was paid.At the year's end,how will this affect the balance sheet?

Using the following data,make the adjustments,and complete the worksheet for one month. a.Equipment costing $750 with a residual value of $150 has an expected life of 12 months. b.Accrued salaries of $100. c.Supplies ledger balance $900,supplies used $400.

Original cost of equipment is not adjusted on the worksheet.

The adjustment that is made to allocate the cost of a building over its expected life is called:

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

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: The Conclusion of the Payroll Process

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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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