Question 1

Depreciation of equipment was recorded twice this period. This would:

Accepted Answer

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

Question 2

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 3

Historical cost is the same as:

Accepted Answer

A) residual value. 
B) original cost. 
C) accumulated depreciation. 
D) book value. 
A) residual value. 
B) original cost. 
C) accumulated depreciation. 
D) book value.

Question 4

Logan's Snowboards estimated depreciation for office equipment at $250. The adjusting entry to record the depreciation would include:

Accepted Answer

A) a debit to Accumulated Depreciation for $250. 
B) a credit to Depreciation Expense for $250. 
C) a credit to Accumulated Depreciation for $250. 
D) a credit to Office Equipment for $250. 
A) a debit to Accumulated Depreciation for $250. 
B) a credit to Depreciation Expense for $250. 
C) a credit to Accumulated Depreciation for $250. 
D) a credit to Office Equipment for $250.

Question 5

Adjusting the supplies account will:

Accepted Answer

A) decrease the total assets and increase the total expenses. 
B) decrease the total assets and decrease the total expenses. 
C) increase the total assets and increase the total expenses. 
D) increase the total assets and decrease the total expenses. 
A) decrease the total assets and increase the total expenses. 
B) decrease the total assets and decrease the total expenses. 
C) increase the total assets and increase the total expenses. 
D) increase the total assets and decrease the total expenses.

Question 6

The original cost of equipment is reduced by the amount of Depreciation Expense.

Accepted Answer

A) True 
 B)False

Question 7

On the formal income statement, the left column is the debit column, and the right column is the credit column.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would cause a liability to be credited and an expense to be debited?

Accepted Answer

A) Recording the adjustment for the expiration of rent 
B) Recording the depreciation of equipment 
C) Recording the accrual of salaries incurred 
D) Purchasing equipment 
A) Recording the adjustment for the expiration of rent 
B) Recording the depreciation of equipment 
C) Recording the accrual of salaries incurred 
D) Purchasing equipment

Question 9

The capital balance amount shown in the balance sheet column of the worksheet represents:

Accepted Answer

A) the beginning capital plus net income. 
B) the beginning capital plus net income less withdrawal. 
C) the beginning capital less withdrawals. 
D) the beginning capital plus any investments to capital that occurred during the period. 
A) the beginning capital plus net income. 
B) the beginning capital plus net income less withdrawal. 
C) the beginning capital less withdrawals. 
D) the beginning capital plus any investments to capital that occurred during the period.

Question 10

On a worksheet, the balance sheet debit column total is $1,000 and the credit column total is $2,000. Which of the following statements is correct?

Accepted Answer

A) The company had a net income of $1,000. 
B) The company had a loss of $1,000. 
C) The company's expenses were greater than revenues. 
D) None of the above are correct. 
A) The company had a net income of $1,000. 
B) The company had a loss of $1,000. 
C) The company's expenses were greater than revenues. 
D) None of the above are correct.

Question 11

As Prepaid Rent is used, the asset becomes a(n):

Accepted Answer

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

Question 12

Samantha purchased a two-year insurance policy for $7,200. The adjusting entry for one month would include a:

Accepted Answer

A) debit to Insurance Expense, $300. 
B) credit to Cash, $300. 
C) debit to Prepaid Insurance, $300. 
D) credit to Insurance expense, $300. 
A) debit to Insurance Expense, $300. 
B) credit to Cash, $300. 
C) debit to Prepaid Insurance, $300. 
D) credit to Insurance expense, $300.

Question 13

Bailey's received its electric bill for December on December 31 but did not pay nor record it in the general journal. This resulted in:

Accepted Answer

A) understated assets. 
B) overstated net income. 
C) overstated liabilities. 
D) understated capital. 
A) understated assets. 
B) overstated net income. 
C) overstated liabilities. 
D) understated capital.

Question 14

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 15

A contra-asset is:

Accepted Answer

A) in reality a liability. 
B) an asset with a debit balance. 
C) an account with an opposite balance of a normal asset. 
D) an account that increases the asset. 
A) in reality a liability. 
B) an asset with a debit balance. 
C) an account with an opposite balance of a normal asset. 
D) an account that increases the asset.

Question 16

What are the differences between depreciation expense and accumulated depreciation?

Accepted Answer

The differences between depreciation exp

Question 17

Which of the following would cause total assets to decrease and total expense to increase?

Accepted Answer

A) Recording the depreciation of equipment 
B) Recording the consumption of supplies 
C) Recording the expiration of prepaid rent 
D) All of the above would have that effect 
A) Recording the depreciation of equipment 
B) Recording the consumption of supplies 
C) Recording the expiration of prepaid rent 
D) All of the above would have that effect

Question 18

Debits must equal credits on the Statement of Owner's equity.

Accepted Answer

A) True 
 B)False

Question 19

To record accrued salaries, you would:

Accepted Answer

A) debit Cash and credit Salaries Payable. 
B) debit Salaries Payable and credit Salaries Expense. 
C) debit Salaries Expense and credit Salaries Payable. 
D) None of these answers are correct. 
A) debit Cash and credit Salaries Payable. 
B) debit Salaries Payable and credit Salaries Expense. 
C) debit Salaries Expense and credit Salaries Payable. 
D) None of these answers are correct.

Question 20

The adjustment for accrued wages included the entire pay period, some of which occurs next month. This would:

Accepted Answer

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

Exam 4: The Accounting Cycle Continued

Depreciation of equipment was recorded twice this period. This would:

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

Historical cost is the same as:

Logan's Snowboards estimated depreciation for office equipment at $250. The adjusting entry to record the depreciation would include:

Adjusting the supplies account will:

The original cost of equipment is reduced by the amount of Depreciation Expense.

On the formal income statement, the left column is the debit column, and the right column is the credit column.

Which of the following would cause a liability to be credited and an expense to be debited?

The capital balance amount shown in the balance sheet column of the worksheet represents:

On a worksheet, the balance sheet debit column total is $1,000 and the credit column total is $2,000. Which of the following statements is correct?

As Prepaid Rent is used, the asset becomes a(n):

Samantha purchased a two-year insurance policy for $7,200. The adjusting entry for one month would include a:

Bailey's received its electric bill for December on December 31 but did not pay nor record it in the general journal. This resulted in:

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. $ ________

A contra-asset is:

What are the differences between depreciation expense and accumulated depreciation?

Which of the following would cause total assets to decrease and total expense to increase?

Debits must equal credits on the Statement of Owner's equity.

To record accrued salaries, you would:

The adjustment for accrued wages included the entire pay period, some of which occurs next month. 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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