Question 1

An actual count of a stock of goods on hand is called a physical inventory.

Accepted Answer

A) True 
 B)False  True

Question 2

Match the terms below with the correct definitions.
  
-Debit Income Summary; credit Merchandise Inventory

Accepted Answer

C

Question 3

Under a periodic inventory system, entries are recorded in the Merchandise Inventory account at the end of the fiscal period only.

Accepted Answer

A) True 
 B)False  True

Question 4

Purchase Discounts appear under which column of the worksheet, with the following normal balance?

Accepted Answer

A) Income Statement, CR 
B) Income Statement, DR 
C) Balance Sheet, CR 
D) Balance Sheet, DR 
A) Income Statement, CR 
B) Income Statement, DR 
C) Balance Sheet, CR 
D) Balance Sheet, DR

Question 5

This liability account is credited when cash is received for goods and/or services in advance of being earned

Accepted Answer

A) Pre-earned Revenues 
B) Unearned Revenues 
C) Advanced Revenues 
D) Prepaid Revenues 
A) Pre-earned Revenues 
B) Unearned Revenues 
C) Advanced Revenues 
D) Prepaid Revenues

Question 6

If the trial balance amount of Unearned Pest Spray Revenue is $50,000, and $40,000 has been earned by the end of the fiscal period, the adjustment would be

Accepted Answer

A) debit Accounts Payable; credit Unearned Pest Spray Revenue. 
B) debit Unearned Pest Spray Revenue; credit Pest Spray Revenue. 
C) debit Pest Spray Revenue; credit Unearned Pest Spray Revenue. 
D) debit Unearned Pest Spray Revenue; credit Cash. 
E) debit Cash; credit Unearned Pest Spray Revenue. 
A) debit Accounts Payable; credit Unearned Pest Spray Revenue. 
B) debit Unearned Pest Spray Revenue; credit Pest Spray Revenue. 
C) debit Pest Spray Revenue; credit Unearned Pest Spray Revenue. 
D) debit Unearned Pest Spray Revenue; credit Cash. 
E) debit Cash; credit Unearned Pest Spray Revenue.

Question 7

Wages Expense has a balance of $55,400 in the Trial Balance Debit column of a work sheet. The Adjustments Credit column contains a $500 credit to Wages Payable. The Adjusted Trial Balance columns will show

Accepted Answer

A) Wages Expense with a debit balance of $54,900. 
B) Wages Expense with a debit balance of $500. 
C) Wages Payable with a credit balance of $55,900. 
D) Wages Expense with a debit balance of $55,900. 
E) Wages Expense with a credit balance of $55,900. 
A) Wages Expense with a debit balance of $54,900. 
B) Wages Expense with a debit balance of $500. 
C) Wages Payable with a credit balance of $55,900. 
D) Wages Expense with a debit balance of $55,900. 
E) Wages Expense with a credit balance of $55,900.

Question 8

Unearned Subscriptions is classified as a liability account.

Accepted Answer

A) True 
 B)False

Question 9

The Prepaid Insurance account has a balance of $200 less in the work sheet's Balance Sheet Debit column than in the work sheet's Trial Balance Debit column. This would be the result of a

Accepted Answer

A) $200 entry to Prepaid Insurance in the work sheet's Adjustments Credit column. 
B) $200 entry to Prepaid Insurance in the work sheet's Adjustments Debit column. 
C) $200 entry to Insurance Expense in the work sheet's Adjustments Credit column. 
D) $400 entry to Insurance Expense in the work sheet's Adjustments Credit column. 
E) $400 entry to Prepaid Insurance in the work sheet's Adjustments Credit column. 
A) $200 entry to Prepaid Insurance in the work sheet's Adjustments Credit column. 
B) $200 entry to Prepaid Insurance in the work sheet's Adjustments Debit column. 
C) $200 entry to Insurance Expense in the work sheet's Adjustments Credit column. 
D) $400 entry to Insurance Expense in the work sheet's Adjustments Credit column. 
E) $400 entry to Prepaid Insurance in the work sheet's Adjustments Credit column.

Question 10

Unearned revenues are classified ________ as and have a normal balance of ________.

Accepted Answer

A) Liabilities, CR 
B) Revenues, CR 
C) Assets, DR 
D) Equity, CR 
A) Liabilities, CR 
B) Revenues, CR 
C) Assets, DR 
D) Equity, CR

Question 11

In the Income Statement columns of the work sheet, Income Summary is shown as the net balance of the two amounts in the Adjustments column.

Accepted Answer

A) True 
 B)False

Question 12

The ending merchandise inventory (using the periodic system) is placed on the books by an adjusting entry

Accepted Answer

A) debiting Merchandise Inventory and crediting Sales. 
B) debiting Income Summary and crediting Merchandise Inventory. 
C) debiting Merchandise Inventory and crediting Income Summary. 
D) debiting Purchases and crediting Merchandise Inventory. 
E) debiting Merchandise Inventory and crediting Purchases. 
A) debiting Merchandise Inventory and crediting Sales. 
B) debiting Income Summary and crediting Merchandise Inventory. 
C) debiting Merchandise Inventory and crediting Income Summary. 
D) debiting Purchases and crediting Merchandise Inventory. 
E) debiting Merchandise Inventory and crediting Purchases.

Question 13

Inventory shortages are debited to

Accepted Answer

A) Merchandise Inventory 
B) Cost of Goods Sold 
C) Inventory Short/Over 
D) Sales 
A) Merchandise Inventory 
B) Cost of Goods Sold 
C) Inventory Short/Over 
D) Sales

Question 14

Match the terms below with the correct definitions.
  
-Temporary account used for adjusting Merchandise Inventory account

Accepted Answer

The answer of Match the terms below with the correct...

Question 15

The adjustment for salaries owed but not yet paid to employees will decrease the balance in the Salary Expense account.

Accepted Answer

A) True 
 B)False

Question 16

An adjusting entry to record expired or used insurance is

Accepted Answer

A) Increase Insurance Expense with a DR 
B) Increase Insurance Expense with a CR 
C) Increase Prepaid Insurance with a CR 
D) Increase Prepaid Insurance with a DR 
A) Increase Insurance Expense with a DR 
B) Increase Insurance Expense with a CR 
C) Increase Prepaid Insurance with a CR 
D) Increase Prepaid Insurance with a DR

Question 17

The appropriate journal for recording the adjusting entry for Merchandise Inventory is

Accepted Answer

A) the cash payments journal. 
B) the purchases journal. 
C) the sales journal. 
D) the general journal. 
E) either the cash payments journal or the purchases journal. 
A) the cash payments journal. 
B) the purchases journal. 
C) the sales journal. 
D) the general journal. 
E) either the cash payments journal or the purchases journal.

Question 18

On the work sheet, ending merchandise inventory will appear on the

Accepted Answer

A) credit side of the Trial Balance column. 
B) debit side of the Balance Sheet column. 
C) debit side of the Income Statement column. 
D) credit side of the Balance Sheet column. 
E) credit side of the Adjustments column. 
A) credit side of the Trial Balance column. 
B) debit side of the Balance Sheet column. 
C) debit side of the Income Statement column. 
D) credit side of the Balance Sheet column. 
E) credit side of the Adjustments column.

Question 19

The amount of ending merchandise inventory appears in the Balance Sheet Debit column of the work sheet.

Accepted Answer

A) True 
 B)False

Question 20

The physical count of inventory may be less than the accounting records due to the following:

Accepted Answer

A) Receiving Errors 
B) Shoplifting 
C) Accounting Errors 
D) All of the above 
A) Receiving Errors 
B) Shoplifting 
C) Accounting Errors 
D) All of the above

An actual count of a stock of goods on hand is called a physical inventory.

Match the terms below with the correct definitions. -Debit Income Summary; credit Merchandise Inventory

Under a periodic inventory system, entries are recorded in the Merchandise Inventory account at the end of the fiscal period only.

Purchase Discounts appear under which column of the worksheet, with the following normal balance?

This liability account is credited when cash is received for goods and/or services in advance of being earned

If the trial balance amount of Unearned Pest Spray Revenue is $50,000, and $40,000 has been earned by the end of the fiscal period, the adjustment would be

Wages Expense has a balance of $55,400 in the Trial Balance Debit column of a work sheet. The Adjustments Credit column contains a $500 credit to Wages Payable. The Adjusted Trial Balance columns will show

Unearned Subscriptions is classified as a liability account.

The Prepaid Insurance account has a balance of $200 less in the work sheet's Balance Sheet Debit column than in the work sheet's Trial Balance Debit column. This would be the result of a

Unearned revenues are classified as and have a normal balance of .

In the Income Statement columns of the work sheet, Income Summary is shown as the net balance of the two amounts in the Adjustments column.

The ending merchandise inventory (using the periodic system) is placed on the books by an adjusting entry

Inventory shortages are debited to

Match the terms below with the correct definitions. -Temporary account used for adjusting Merchandise Inventory account

The adjustment for salaries owed but not yet paid to employees will decrease the balance in the Salary Expense account.

An adjusting entry to record expired or used insurance is

The appropriate journal for recording the adjusting entry for Merchandise Inventory is

On the work sheet, ending merchandise inventory will appear on the

The amount of ending merchandise inventory appears in the Balance Sheet Debit column of the work sheet.

The physical count of inventory may be less than the accounting records due to the following:

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance Including Appendix

Bank Accounts and Cash Funds

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Financial Statements, Closing Entries, and Reversing Entries

Filters

Exam 11: Work Sheet and Adjusting Entries

An actual count of a stock of goods on hand is called a physical inventory.

Match the terms below with the correct definitions. -Debit Income Summary; credit Merchandise Inventory

Under a periodic inventory system, entries are recorded in the Merchandise Inventory account at the end of the fiscal period only.

Purchase Discounts appear under which column of the worksheet, with the following normal balance?

This liability account is credited when cash is received for goods and/or services in advance of being earned

If the trial balance amount of Unearned Pest Spray Revenue is $50,000, and $40,000 has been earned by the end of the fiscal period, the adjustment would be

Wages Expense has a balance of $55,400 in the Trial Balance Debit column of a work sheet. The Adjustments Credit column contains a $500 credit to Wages Payable. The Adjusted Trial Balance columns will show

Unearned Subscriptions is classified as a liability account.

The Prepaid Insurance account has a balance of $200 less in the work sheet's Balance Sheet Debit column than in the work sheet's Trial Balance Debit column. This would be the result of a

Unearned revenues are classified ________ as and have a normal balance of ________.

In the Income Statement columns of the work sheet, Income Summary is shown as the net balance of the two amounts in the Adjustments column.

The ending merchandise inventory (using the periodic system) is placed on the books by an adjusting entry

Inventory shortages are debited to

Match the terms below with the correct definitions. -Temporary account used for adjusting Merchandise Inventory account

The adjustment for salaries owed but not yet paid to employees will decrease the balance in the Salary Expense account.

An adjusting entry to record expired or used insurance is

The appropriate journal for recording the adjusting entry for Merchandise Inventory is

On the work sheet, ending merchandise inventory will appear on the

The amount of ending merchandise inventory appears in the Balance Sheet Debit column of the work sheet.

The physical count of inventory may be less than the accounting records due to the following:

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance Including Appendix

Bank Accounts and Cash Funds

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Financial Statements, Closing Entries, and Reversing Entries

Filters

Unearned revenues are classified as and have a normal balance of .