Question 1

Net income is shown on the work sheet as a

Accepted Answer

A)  debit in the Balance Sheet column. 
B)  credit in the Income Statement column. 
C)  debit in the Income Statement column. 
D)  debit in the Adjustments column. 
A)  debit in the Balance Sheet column. 
B)  credit in the Income Statement column. 
C)  debit in the Income Statement column. 
D)  debit in the Adjustments column.

Question 2

While certain distinctive problems may arise in keeping the accounts of any specific enterprise,the principles of accounting on the cash basis are generally the same.

Accepted Answer

A) True 
 B)False

Question 3

The cost of an asset that is subject to depreciation is called

Accepted Answer

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

Question 4

The matching principle in accounting requires the matching of

Accepted Answer

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

Question 5

Compute the following:
a.
Carder & Company purchased equipment for $24,000 with a useful life of eight years and no expected salvage value.Prepare the adjusting entry for the first year using the straight-line depreciation method and compute the book value at the end of the second year of the equipment's life.
b.
DAC Company pays its employees every Friday.On January 2,20--,the Company paid $6,000 for the 5 days beginning the previous December 29.Prepare the adjusting entry on December 31.

Accepted Answer

None

Question 6

The balance sheet reports earnings on a specific date.

Accepted Answer

A) True 
 B)False

Question 7

The only correct way to change the balance of a ledger account is to make a journal entry.

Accepted Answer

A) True 
 B)False

Question 8

Matching the cost of an asset with the revenue it is expected to produce is called

Accepted Answer

A)  adjusting. 
B)  expensing. 
C)  depreciation. 
D)  contra-valuing. 
A)  adjusting. 
B)  expensing. 
C)  depreciation. 
D)  contra-valuing.

Question 9

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

Question 10

"Adjusting" is written in the Item column of the general ledger when posting adjusting entries.

Accepted Answer

A) True 
 B)False

Question 11

Compute the following:
a.
Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value.Prepare the adjusting entry for the first year using the straight-line depreciation method and compute the book value at the end of the second year of the equipment's life.
b.
Zip Company pays its employees every Friday.On January 4,20--,the Company paid $2,200 for the 5 days beginning the previous December 31.Prepare the adjusting entry on December 31.

Accepted Answer

None

Question 12

A manual work sheet is usually prepared in pencil.

Accepted Answer

A) True 
 B)False

Question 13

When posting an adjusting entry to the general ledger,write

Accepted Answer

A)  "adjusting" in the Posting Reference column. 
B)  "adjusting" in the Item column. 
C)  "ledger" in the general ledger. 
D)  "balance" in the work sheet. 
A)  "adjusting" in the Posting Reference column. 
B)  "adjusting" in the Item column. 
C)  "ledger" in the general ledger. 
D)  "balance" in the work sheet.

Question 14

The book value of a plant asset is determined by subtracting the accumulated depreciation from the cost of the plant asset.

Accepted Answer

A) True 
 B)False

Question 15

The amount an item can be sold for under normal economic conditions is the ____________________.

Accepted Answer

The answer of The amount an item can be sold...

Question 16

The cash basis of accounting and the accrual basis of accounting result in the same measures of net income.

Accepted Answer

A) True 
 B)False

Question 17

Net income is shown on the work sheet as a(n)

Accepted Answer

A)  debit in the Balance Sheet columns. 
B)  credit in the Balance Sheet columns. 
C)  debit and a credit in the Balance Sheet columns. 
D)  adjustment to owner's equity. 
A)  debit in the Balance Sheet columns. 
B)  credit in the Balance Sheet columns. 
C)  debit and a credit in the Balance Sheet columns. 
D)  adjustment to owner's equity.

Question 18

The balance sheet reports assets,liabilities,and owner's equity for a specific period of time.

Accepted Answer

A) True 
 B)False

Question 19

Match the terms with the definitions.
-The amount an item can be sold for under normal economic conditions.

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 20

Accumulated Depreciation-Delivery Equipment is an example of a(n)____________________ account.

Accepted Answer

The answer of Accumulated Depreciation-Delivery Equipment is an example of...

Net income is shown on the work sheet as a

While certain distinctive problems may arise in keeping the accounts of any specific enterprise,the principles of accounting on the cash basis are generally the same.

The cost of an asset that is subject to depreciation is called

The matching principle in accounting requires the matching of

The balance sheet reports earnings on a specific date.

The only correct way to change the balance of a ledger account is to make a journal entry.

Matching the cost of an asset with the revenue it is expected to produce is called

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

"Adjusting" is written in the Item column of the general ledger when posting adjusting entries.

A manual work sheet is usually prepared in pencil.

When posting an adjusting entry to the general ledger,write

The book value of a plant asset is determined by subtracting the accumulated depreciation from the cost of the plant asset.

The amount an item can be sold for under normal economic conditions is the ____________________.

The cash basis of accounting and the accrual basis of accounting result in the same measures of net income.

Net income is shown on the work sheet as a(n)

The balance sheet reports assets,liabilities,and owner's equity for a specific period of time.

Match the terms with the definitions. -The amount an item can be sold for under normal economic conditions.

Accumulated Depreciation-Delivery Equipment is an example of a(n)____________________ account.

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

Net income is shown on the work sheet as a

While certain distinctive problems may arise in keeping the accounts of any specific enterprise,the principles of accounting on the cash basis are generally the same.

The cost of an asset that is subject to depreciation is called

The matching principle in accounting requires the matching of

The balance sheet reports earnings on a specific date.

The only correct way to change the balance of a ledger account is to make a journal entry.

Matching the cost of an asset with the revenue it is expected to produce is called

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

"Adjusting" is written in the Item column of the general ledger when posting adjusting entries.

A manual work sheet is usually prepared in pencil.

When posting an adjusting entry to the general ledger,write

The book value of a plant asset is determined by subtracting the accumulated depreciation from the cost of the plant asset.

The amount an item can be sold for under normal economic conditions is the ____________________.

The cash basis of accounting and the accrual basis of accounting result in the same measures of net income.

Net income is shown on the work sheet as a(n)

The balance sheet reports assets,liabilities,and owner's equity for a specific period of time.

Match the terms with the definitions. -The amount an item can be sold for under normal economic conditions.

Accumulated Depreciation-Delivery Equipment is an example of a(n)____________________ account.

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