Question 1

The difference between the asset account and the contra-asset account is known as the ____________________.

Accepted Answer

The answer of The difference between the asset account and...

Question 2

Under the modified cash basis of accounting,cash payments for assets with lives longer than one accounting period (buildings,equipment,insurance,etc.)are recorded as assets and adjustments are made each period.

Accepted Answer

A) True 
 B)False

Question 3

Under the modified cash basis of accounting,adjustments are made only for prepaid items and depreciation on plant and equipment.

Accepted Answer

A) True 
 B)False

Question 4

Match the terms with the definitions.
-The expected market value of an asset at the end of its useful life.

Accepted Answer

A) Adjusted Trial Balance columns 
B) Adjusting entries 
C) Balance Sheet columns 
D) book value 
E) contra-asset
F)depreciable cost
G)depreciation
H)fiscal year
I)historical cost principle
J)Income Statement columns
K)market value
L)matching principle
M)plant assets
N)salvage value
O)straight-line method
P)undepreciated cost
Q)useful life
R)work sheet 
A) Adjusted Trial Balance columns 
B) Adjusting entries 
C) Balance Sheet columns 
D) book value 
E) contra-asset
F)depreciable cost
G)depreciation
H)fiscal year
I)historical cost principle
J)Income Statement columns
K)market value
L)matching principle
M)plant assets
N)salvage value
O)straight-line method
P)undepreciated cost
Q)useful life
R)work sheet

Question 5

The matching principle offers the best measure of net income.

Accepted Answer

A) True 
 B)False

Question 6

Match the terms with the definitions.
-The cost of an asset that is subject to depreciation.

Accepted Answer

A) Adjusted Trial Balance columns 
B) Adjusting entries 
C) Balance Sheet columns 
D) book value 
E) contra-asset
F)depreciable cost
G)depreciation
H)fiscal year
I)historical cost principle
J)Income Statement columns
K)market value
L)matching principle
M)plant assets
N)salvage value
O)straight-line method
P)undepreciated cost
Q)useful life
R)work sheet 
A) Adjusted Trial Balance columns 
B) Adjusting entries 
C) Balance Sheet columns 
D) book value 
E) contra-asset
F)depreciable cost
G)depreciation
H)fiscal year
I)historical cost principle
J)Income Statement columns
K)market value
L)matching principle
M)plant assets
N)salvage value
O)straight-line method
P)undepreciated cost
Q)useful life
R)work sheet

Question 7

A contra-asset has a credit balance.

Accepted Answer

A) True 
 B)False

Question 8

The formula to calculate straight-line depreciation is depreciable cost times the expected life of the asset.

Accepted Answer

A) True 
 B)False

Question 9

Plant assets provide benefits over a long period of time.

Accepted Answer

A) True 
 B)False

Question 10

A fiscal year is always the same as the calendar year.

Accepted Answer

A) True 
 B)False

Question 11

In the columns below,insert the entry that would be made for each transaction under each accounting basis,using appropriate debit and credit account titles.
​
 1. Performed services on account.
2. Supplies are partly used.
3. Purchased one-year insurance policy for cash.
4. Received bill for electricity.
5. Depreciation on equipment.
6. Purchased equipment on account.
7. Paid cash for wages.
8. Paid for equipment purchased on account.
9. Performed services for cash.
10. Paid cash for new equipment.

Accepted Answer

The answer of In the columns below,insert the entry that...

Question 12

The Income Statement and Balance Sheet columns of a work sheet are produced below.Indicate with an "X" the specific Income Statement or Balance Sheet column(s)in which each amount transferred from the Adjusted Trial Balance columns should be placed,if at all.

Accepted Answer

The answer of The Income Statement and Balance Sheet columns...

Question 13

A 12-month fiscal year can end on any month of the calendar year.

Accepted Answer

A) True 
 B)False

Question 14

Owner's equity at the start of the period is $35,000; net income for the period is $30,000; the total investments by the owner is $15,000; and total withdrawals by the owner is $5,000.The owner's equity at the end of the period is

Accepted Answer

A)  $80,000. 
B)  $75,000. 
C)  $85,000. 
D)  $40,000. 
A)  $80,000. 
B)  $75,000. 
C)  $85,000. 
D)  $40,000.

Question 15

The third pair of columns on a 10-column work sheet prepared at the end of the period would be the

Accepted Answer

A)  Income Statement columns. 
B)  Adjustments columns. 
C)  Balance Sheet columns. 
D)  Adjusted Trial Balance columns. 
A)  Income Statement columns. 
B)  Adjustments columns. 
C)  Balance Sheet columns. 
D)  Adjusted Trial Balance columns.

Question 16

The work sheet columns that show the amounts that will be reported in the statement of owner's equity and the balance sheet are the ____________________.

Accepted Answer

Balance Sh

Question 17

The ____________________ is a form used to pull together all of the information needed to enter adjusting entries and prepare the financial statements.

Accepted Answer

The answer of The ____________________ is a form used to...

Question 18

If a business records revenues when earned,regardless of whether cash has been received,and records expenses when they are incurred,the accounting system is a(n)

Accepted Answer

A)  accrual basis of accounting. 
B)  cash basis of accounting. 
C)  modified cash basis of accounting. 
D)  revenue basis of accounting. 
A)  accrual basis of accounting. 
B)  cash basis of accounting. 
C)  modified cash basis of accounting. 
D)  revenue basis of accounting.

Question 19

The owner's capital account in the last two columns of the work sheet is not up-to-date because it does not yet include net income and withdrawals of the current period.

Accepted Answer

A) True 
 B)False

Question 20

Accounting for expenses on the cash basis generally means that expenses are entered in the accounts even though they may have been charged and not paid for in cash.

Accepted Answer

A) True 
 B)False

The difference between the asset account and the contra-asset account is known as the ____________________.

Under the modified cash basis of accounting,cash payments for assets with lives longer than one accounting period (buildings,equipment,insurance,etc.)are recorded as assets and adjustments are made each period.

Under the modified cash basis of accounting,adjustments are made only for prepaid items and depreciation on plant and equipment.

Match the terms with the definitions. -The expected market value of an asset at the end of its useful life.

The matching principle offers the best measure of net income.

Match the terms with the definitions. -The cost of an asset that is subject to depreciation.

A contra-asset has a credit balance.

The formula to calculate straight-line depreciation is depreciable cost times the expected life of the asset.

Plant assets provide benefits over a long period of time.

A fiscal year is always the same as the calendar year.

The Income Statement and Balance Sheet columns of a work sheet are produced below.Indicate with an "X" the specific Income Statement or Balance Sheet column(s)in which each amount transferred from the Adjusted Trial Balance columns should be placed,if at all.

A 12-month fiscal year can end on any month of the calendar year.

Owner's equity at the start of the period is $35,000; net income for the period is $30,000; the total investments by the owner is $15,000; and total withdrawals by the owner is $5,000.The owner's equity at the end of the period is

The third pair of columns on a 10-column work sheet prepared at the end of the period would be the

The work sheet columns that show the amounts that will be reported in the statement of owner's equity and the balance sheet are the ____________________.

The ____________________ is a form used to pull together all of the information needed to enter adjusting entries and prepare the financial statements.

If a business records revenues when earned,regardless of whether cash has been received,and records expenses when they are incurred,the accounting system is a(n)

The owner's capital account in the last two columns of the work sheet is not up-to-date because it does not yet include net income and withdrawals of the current period.

Accounting for expenses on the cash basis generally means that expenses are entered in the accounts even though they may have been charged and not paid for in cash.

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Module Accounting For A Professional Service Business The Combination Journal

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Exam 5: Adjusting Entries and the Work Sheet

The difference between the asset account and the contra-asset account is known as the ____________________.

Under the modified cash basis of accounting,cash payments for assets with lives longer than one accounting period (buildings,equipment,insurance,etc.)are recorded as assets and adjustments are made each period.

Under the modified cash basis of accounting,adjustments are made only for prepaid items and depreciation on plant and equipment.

Match the terms with the definitions. -The expected market value of an asset at the end of its useful life.

The matching principle offers the best measure of net income.

Match the terms with the definitions. -The cost of an asset that is subject to depreciation.

A contra-asset has a credit balance.

The formula to calculate straight-line depreciation is depreciable cost times the expected life of the asset.

Plant assets provide benefits over a long period of time.

A fiscal year is always the same as the calendar year.

The Income Statement and Balance Sheet columns of a work sheet are produced below.Indicate with an "X" the specific Income Statement or Balance Sheet column(s)in which each amount transferred from the Adjusted Trial Balance columns should be placed,if at all.

A 12-month fiscal year can end on any month of the calendar year.

Owner's equity at the start of the period is $35,000; net income for the period is $30,000; the total investments by the owner is $15,000; and total withdrawals by the owner is $5,000.The owner's equity at the end of the period is

The third pair of columns on a 10-column work sheet prepared at the end of the period would be the

The work sheet columns that show the amounts that will be reported in the statement of owner's equity and the balance sheet are the ____________________.

The ____________________ is a form used to pull together all of the information needed to enter adjusting entries and prepare the financial statements.

If a business records revenues when earned,regardless of whether cash has been received,and records expenses when they are incurred,the accounting system is a(n)

The owner's capital account in the last two columns of the work sheet is not up-to-date because it does not yet include net income and withdrawals of the current period.

Accounting for expenses on the cash basis generally means that expenses are entered in the accounts even though they may have been charged and not paid for in cash.

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Module Accounting For A Professional Service Business The Combination Journal

Filters