Question 1

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 2

On a worksheet, the income statement debit column totals $10,200 and the credit column totals $10,000. Which of the following statements is correct?

Accepted Answer

A) The company had a net loss of $200. 
B) The company had a net income of $200. 
C) The company's revenues were greater than expenses. 
D) None of the above are correct. 
A) The company had a net loss of $200. 
B) The company had a net income of $200. 
C) The company's revenues were greater than expenses. 
D) None of the above are correct.

Question 3

Alcatraz Boat Tours showed store supplies available during the year, $550. If at the end of the month supplies used were $200, the adjusting entry would include a:

Accepted Answer

A) debit to Supplies Expense for $200. 
B) debit to Supplies Expense for $350. 
C) credit to Supplies Expense for $200. 
D) credit to Supplies Expense for $350. 
A) debit to Supplies Expense for $200. 
B) debit to Supplies Expense for $350. 
C) credit to Supplies Expense for $200. 
D) credit to Supplies Expense for $350.

Question 4

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 5

The Sarbanes-Oxley Act:

Accepted Answer

A) prohibits companies from buying additional equipment. 
B) does not allow adjusting entries. 
C) states the need to have accurate financial reports. 
D) does not allow the use of a worksheet. 
A) prohibits companies from buying additional equipment. 
B) does not allow adjusting entries. 
C) states the need to have accurate financial reports. 
D) does not allow the use of a worksheet.

Question 6

Assuming no investments were made during the period, the balance of Capital shown on the worksheet is:

Accepted Answer

A) beginning capital. 
B) ending capital. 
C) net income. 
D) net loss. 
A) beginning capital. 
B) ending capital. 
C) net income. 
D) net loss.

Question 7

If the Supplies account is not adjusted:

Accepted Answer

A) assets will be overstated and expenses will be understated. 
B) assets will be overstated and expenses will be overstated. 
C) assets will be understated and expenses will be overstated. 
D) assets will be understated and expenses will be understated. 
A) assets will be overstated and expenses will be understated. 
B) assets will be overstated and expenses will be overstated. 
C) assets will be understated and expenses will be overstated. 
D) assets will be understated and expenses will be understated.

Question 8

Which of the following is most likely to result in an adjusting entry at the end of the period?

Accepted Answer

A) Payment of two months' insurance in advance 
B) Payment of one month's rent 
C) Owner's withdrawals 
D) Payment for routine maintenance on the company van 
A) Payment of two months' insurance in advance 
B) Payment of one month's rent 
C) Owner's withdrawals 
D) Payment for routine maintenance on the company van

Question 9

All of the following are reasons to adjust the account balances at the end of the period, except:

Accepted Answer

A) to accurately report the assets on the balance sheet. 
B) to report all revenues earned during the period. 
C) to report all expenses incurred during the period. 
D) to correct any errors made during the period. 
A) to accurately report the assets on the balance sheet. 
B) to report all revenues earned during the period. 
C) to report all expenses incurred during the period. 
D) to correct any errors made during the period.

Question 10

Bringing account balances up to date before preparing financial reports is called:

Accepted Answer

A) posting. 
B) adjusting. 
C) journalizing. 
D) analyzing. 
A) posting. 
B) adjusting. 
C) journalizing. 
D) analyzing.

Question 11

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 12

Show which columns would contain the adjusted balances by placing an "x" in the appropriate column. Assume all accounts have normal balances.

Accepted Answer

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

Question 13

On January 1 the Prepaid Insurance account had a balance of $6,000 that represented 6 months' worth of advance payment. It is now the end of March and there have been no adjustments to the account balance. Determine the amount of expense to record at the end of March.
$ ________

Accepted Answer

$3,000 [(6

Question 14

If Prepaid Rent for the period is not adjusted:

Accepted Answer

A) assets will be overstated and expenses will be overstated. 
B) assets will be overstated and expenses will be understated. 
C) assets will be understated and expenses will be overstated. 
D) assets will be understated and expenses will be understated. 
A) assets will be overstated and expenses will be overstated. 
B) assets will be overstated and expenses will be understated. 
C) assets will be understated and expenses will be overstated. 
D) assets will be understated and expenses will be understated.

Question 15

Robert purchased a truck for $35,000 with a residual value of $10,000 and a life expectancy of 5 years; using straight-line depreciation, the amount of the depreciation adjustment for the first year would be:

Accepted Answer

A) $5,000. 
B) $6,000. 
C) $6,400. 
D) $4,000. 
A) $5,000. 
B) $6,000. 
C) $6,400. 
D) $4,000.

Question 16

If the balance of supplies at the start of the month was $900 and at the end of the month you had $450 on hand, the adjustment for Supplies would be:

Accepted Answer

A) $450. 
B) $550. 
C) $350. 
D) $900. 
A) $450. 
B) $550. 
C) $350. 
D) $900.

Question 17

The amount for withdrawals, to be used on the Statement of Owner's Equity, would be obtained from:

Accepted Answer

A) the worksheet in the balance sheet debit column. 
B) the worksheet in the income statement credit column. 
C) the worksheet in the income statement debit column. 
D) the worksheet in the balance sheet credit column. 
A) the worksheet in the balance sheet debit column. 
B) the worksheet in the income statement credit column. 
C) the worksheet in the income statement debit column. 
D) the worksheet in the balance sheet credit column.

Question 18

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.

Accepted Answer

The answer of For each account listed, identify the category...

Question 19

Not recording the Prepaid Rent used causes:

Accepted Answer

A) assets to be too high. 
B) assets to be too low. 
C) expenses to be too high. 
D) revenue to be too high. 
A) assets to be too high. 
B) assets to be too low. 
C) expenses to be too high. 
D) revenue to be too high.

Question 20

Great Lakes Modeling Agency purchased $900 of office furniture at the beginning of the month. Depreciation Expense at the end of the month is $200. What is the balance of the Office Furniture account at the end of the month?

Accepted Answer

A) $700 
B) $1,000 
C) $200 
D) $900 
A) $700 
B) $1,000 
C) $200 
D) $900

Exam 4: The Accounting Cycle Continued

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

On a worksheet, the income statement debit column totals $10,200 and the credit column totals $10,000. Which of the following statements is correct?

Alcatraz Boat Tours showed store supplies available during the year, $550. If at the end of the month supplies used were $200, the adjusting entry would include a:

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

The Sarbanes-Oxley Act:

Assuming no investments were made during the period, the balance of Capital shown on the worksheet is:

If the Supplies account is not adjusted:

Which of the following is most likely to result in an adjusting entry at the end of the period?

All of the following are reasons to adjust the account balances at the end of the period, except:

Bringing account balances up to date before preparing financial reports is called:

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

Show which columns would contain the adjusted balances by placing an "x" in the appropriate column. Assume all accounts have normal balances.

On January 1 the Prepaid Insurance account had a balance of $6,000 that represented 6 months' worth of advance payment. It is now the end of March and there have been no adjustments to the account balance. Determine the amount of expense to record at the end of March. $ ________

If Prepaid Rent for the period is not adjusted:

Robert purchased a truck for $35,000 with a residual value of $10,000 and a life expectancy of 5 years; using straight-line depreciation, the amount of the depreciation adjustment for the first year would be:

If the balance of supplies at the start of the month was $900 and at the end of the month you had $450 on hand, the adjustment for Supplies would be:

The amount for withdrawals, to be used on the Statement of Owner's Equity, would be obtained from:

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.

Not recording the Prepaid Rent used causes:

Great Lakes Modeling Agency purchased $900 of office furniture at the beginning of the month. Depreciation Expense at the end of the month is $200. What is the balance of the Office Furniture account at the end of the month?

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

Filters