Question 1

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 2

When Income Statement credits exceed the debits on the worksheet:

Accepted Answer

A) a net loss has occurred. 
B) a net income has occurred. 
C) an error has been made. 
D) Not enough information has been provided. 
A) a net loss has occurred. 
B) a net income has occurred. 
C) an error has been made. 
D) Not enough information has been provided.

Question 3

Sarah's Spices' accrued wages are $1,800. Which of the following is the required adjusting entry?

Accepted Answer

A) Debit Salaries Expense, $1,800; credit Salaries Payable, $1,800 
B) Credit Salaries Expense, $1,800; debit Salaries Payable, $1,800 
C) Debit Cash, $1,800; credit Salaries Expense, $1,800 
D) Debit Salaries Payable, $1,800; credit Cash, $1,800 
A) Debit Salaries Expense, $1,800; credit Salaries Payable, $1,800 
B) Credit Salaries Expense, $1,800; debit Salaries Payable, $1,800 
C) Debit Cash, $1,800; credit Salaries Expense, $1,800 
D) Debit Salaries Payable, $1,800; credit Cash, $1,800

Question 4

The worksheet is the first financial statement prepared.

Accepted Answer

A) True 
 B)False

Question 5

Prepaid Rent is considered to be a(n):

Accepted Answer

A) liability. 
B) asset. 
C) contra-asset. 
D) revenue. 
A) liability. 
B) asset. 
C) contra-asset. 
D) revenue.

Question 6

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.

Question 7

Which of the following accounts would most likely not need to be adjusted at the end of the year?

Accepted Answer

A) Office Supplies 
B) Prepaid Rent 
C) Accumulated Depreciation 
D) Cash 
A) Office Supplies 
B) Prepaid Rent 
C) Accumulated Depreciation 
D) Cash

Question 8

The use of straight-line depreciation results in equal amounts of depreciation being taken over a period of time.

Accepted Answer

A) True 
 B)False

Question 9

Accumulated Depreciation is a contra-asset account.

Accepted Answer

A) True 
 B)False

Question 10

From the following data, make the following adjustments, and complete the worksheet for the month.
a. Depreciation Expense is $350.
b. Supplies remaining at end of period $75.
c. Prepaid Insurance balance $400, $100 has expired.
d. Wages for the 5 day work-week are $500, the month ended on a Wednesday.

Accepted Answer

The answer of From the following data, make the following...

Question 11

Adjusting entries affect:

Accepted Answer

A) the balance sheet. 
B) the income statement. 
C) Neither of these answers is correct. 
D) Both A and B are correct. 
A) the balance sheet. 
B) the income statement. 
C) Neither of these answers is correct. 
D) Both A and B are correct.

Question 12

Provide the adjusting entries to account for the differences between the trial balance amounts and the adjusted trial balance amounts for the accounts shown. Only a partial trial balance is provided. Use T accounts to show the adjustments.

Accepted Answer

The answer of Provide the adjusting entries to account for...

Question 13

Equipment was purchased for $20,000, residual value is $2,000 and it is expected that the useful life is 10 years. What is the amount in the Accumulated Depreciation account after 3 years assuming straight-line depreciation?
$ ________

Accepted Answer

$5,400 [$1

Question 14

Adjustments are necessary to update account balances for internal transactions.

Accepted Answer

A) True 
 B)False

Question 15

The entry to record the expiration of part of the prepaid rent will:

Accepted Answer

A) decrease total assets and increase total expenses at the end of the month. 
B) decrease total assets and decrease total expenses at the end of the month. 
C) increase total assets and increase total expenses at the end of the month. 
D) increase total assets and decrease total expenses at the end of the month. 
A) decrease total assets and increase total expenses at the end of the month. 
B) decrease total assets and decrease total expenses at the end of the month. 
C) increase total assets and increase total expenses at the end of the month. 
D) increase total assets and decrease total expenses at the end of the month.

Question 16

Which of the following transactions would result in an accrual?

Accepted Answer

A) Salary expense has been incurred but unpaid. 
B) Rent expired for the month. 
C) Supplies used during the accounting period. 
D) Equipment depreciated over the period. 
A) Salary expense has been incurred but unpaid. 
B) Rent expired for the month. 
C) Supplies used during the accounting period. 
D) Equipment depreciated over the period.

Question 17

Evans Golf Academy estimated depreciation on its building at $300. The adjusting entry for depreciation of the building would include:

Accepted Answer

A) a debit to Accumulated Depreciation for $300. 
B) a debit to Depreciation Expense for $300. 
C) a credit to Building for $300. 
D) a credit to Depreciation Expense for $300. 
A) a debit to Accumulated Depreciation for $300. 
B) a debit to Depreciation Expense for $300. 
C) a credit to Building for $300. 
D) a credit to Depreciation Expense for $300.

Question 18

Which of the financial statements is prepared first from the worksheet?

Accepted Answer

A) Balance sheet 
B) Income statement 
C) Statement of owner's equity 
D) None of these answers are correct. 
A) Balance sheet 
B) Income statement 
C) Statement of owner's equity 
D) None of these answers are correct.

Question 19

The adjusted trial balance on the worksheet shows Accumulated Depreciation, $1,200, and Depreciation Expense, $900. What was the balance in the Accumulated Depreciation account before the adjustment?

Accepted Answer

A) $2,100 
B) $300 
C) $900 
D) $1,200 
A) $2,100 
B) $300 
C) $900 
D) $1,200

Question 20

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.

Exam 4: The Accounting Cycle Continued

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

When Income Statement credits exceed the debits on the worksheet:

Sarah's Spices' accrued wages are $1,800. Which of the following is the required adjusting entry?

The worksheet is the first financial statement prepared.

Prepaid Rent is considered to be a(n):

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

Which of the following accounts would most likely not need to be adjusted at the end of the year?

The use of straight-line depreciation results in equal amounts of depreciation being taken over a period of time.

Accumulated Depreciation is a contra-asset account.

Adjusting entries affect:

Provide the adjusting entries to account for the differences between the trial balance amounts and the adjusted trial balance amounts for the accounts shown. Only a partial trial balance is provided. Use T accounts to show the adjustments.

Equipment was purchased for $20,000, residual value is $2,000 and it is expected that the useful life is 10 years. What is the amount in the Accumulated Depreciation account after 3 years assuming straight-line depreciation? $ ________

Adjustments are necessary to update account balances for internal transactions.

The entry to record the expiration of part of the prepaid rent will:

Which of the following transactions would result in an accrual?

Evans Golf Academy estimated depreciation on its building at $300. The adjusting entry for depreciation of the building would include:

Which of the financial statements is prepared first from the worksheet?

The adjusted trial balance on the worksheet shows Accumulated Depreciation, $1,200, and Depreciation Expense, $900. What was the balance in the Accumulated Depreciation account before the adjustment?

The cost of an asset less accumulated depreciation equals:

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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