Question 1

Which of the following accounts are NOT located on the worksheet income statement?

Accepted Answer

A) Merchandise Inventory 
B) Sales 
C) Sales Discounts 
D) Purchases 
A) Merchandise Inventory 
B) Sales 
C) Sales Discounts 
D) Purchases

Question 2

Match the terms below with the correct definitions.
  
-The credit account of the adjustment for accrued payroll

Accepted Answer

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

Question 3

Match the terms below with the correct definitions.
  
-Merchandise Inventory that appears in the Income Statement Debit column of the work sheet

Accepted Answer

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

Question 4

If revenue is earned over two fiscal periods, one should initially credit the Unearned Revenue account.

Accepted Answer

A) True 
 B)False

Question 5

If the physical inventory is less than the amount in the accounting inventory records, this is known as

Accepted Answer

A) Inventory Short/Over 
B) Inventory Shrinkage 
C) Inventory Adjustment 
D) Inventory Discrepancy 
A) Inventory Short/Over 
B) Inventory Shrinkage 
C) Inventory Adjustment 
D) Inventory Discrepancy

Question 6

The amount of the beginning merchandise inventory appears in the Balance Sheet Credit column of the work sheet.

Accepted Answer

A) True 
 B)False

Question 7

The inventory system that makes an adjustment to the Merchandise Inventory account only when an actual physical inventory is taken

Accepted Answer

A) Physical Inventory Method 
B) Periodic Inventory System 
C) Perpetual Inventory System 
D) Count of Stock Method 
A) Physical Inventory Method 
B) Periodic Inventory System 
C) Perpetual Inventory System 
D) Count of Stock Method

Question 8

Match the terms below with the correct definitions.
  
-An inventory system that debits Purchases when goods are bought

Accepted Answer

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

Question 9

The first adjusting entry for merchandise inventory causes a zero balance in the Merchandise Inventory account when using the periodic inventory system.

Accepted Answer

A) True 
 B)False

Question 10

Using T accounts, record the required adjusting entries for the year ended December 31 for Manning Equipment. Manning Equipment uses the periodic inventory system.
a-b.
A physical count of inventory revealed a balance of $63,222. The Merchandise Inventory account shows a balance of $72,589.
c.Equipment purchased on July 7 of the current year for $14,500 is expected to have a useful life of eight years, with a $3,750 trade-in value.All other equipment has been fully depreciated.The straight-line method is used.(Round to the nearest dollar.)
d.As of December 31, three days' salaries will be unpaid at $587 per day per employee.There are five employees.
e.The balance of Supplies account prior to adjustments is $3,125.The amount of supplies used is $1,965.
f.A prepaid order was received on September 20 for $6,298.At year end, $2,477 had been delivered to the customer.

Accepted Answer

The answer of Using T accounts, record the required adjusting...

Question 11

The temporary account used when adjusting Merchandise Inventory using the periodic inventory system

Accepted Answer

A) Inventory Clearing Account 
B) Inventory Holding Account 
C) Income Summary Account 
D) None of the above 
A) Inventory Clearing Account 
B) Inventory Holding Account 
C) Income Summary Account 
D) None of the above

Question 12

At the time a firm adjusts Merchandise Inventory, the Income Summary account

Accepted Answer

A) contains two closing entries. 
B) has no balance. 
C) contains an adjusting entry for unearned revenue. 
D) contains the last fiscal period's adjusting entry for Merchandise Inventory. 
E) contains an adjusting entry for expired prepaid insurance. 
A) contains two closing entries. 
B) has no balance. 
C) contains an adjusting entry for unearned revenue. 
D) contains the last fiscal period's adjusting entry for Merchandise Inventory. 
E) contains an adjusting entry for expired prepaid insurance.

Question 13

The work sheet for a merchandising business is

Accepted Answer

A) exactly the same as for a service business. 
B) very different from that for a service business. 
C) slightly different from that for a service business. 
D) much shorter than that for a service business. 
E) much longer than that for a service business. 
A) exactly the same as for a service business. 
B) very different from that for a service business. 
C) slightly different from that for a service business. 
D) much shorter than that for a service business. 
E) much longer than that for a service business.

Question 14

At the end of the accounting period, the following should occur with supplies

Accepted Answer

A) No action is required 
B) An adjusting entry should be made to expense the used supplies at the end of the period 
C) A physical inventory should be taken 
D) Both b and c 
A) No action is required 
B) An adjusting entry should be made to expense the used supplies at the end of the period 
C) A physical inventory should be taken 
D) Both b and c

Question 15

Match the terms below with the correct definitions.
  
-The debit account of the adjustment for accrued payroll

Accepted Answer

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

Question 16

Cash appears in which worksheet column and has the following normal balance:

Accepted Answer

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

Question 17

A baseball team records ticket revenue received in advance as Unearned Revenue. On the team's work sheet, the required adjusting entry is

Accepted Answer

A) debit Cash; credit Unearned Revenue. 
B) debit Revenue; credit Unearned Revenue. 
C) debit Unearned Revenue; credit Cash. 
D) debit Unearned Revenue; credit Revenue. 
E) debit Cash; credit Unearned Revenue Income. 
A) debit Cash; credit Unearned Revenue. 
B) debit Revenue; credit Unearned Revenue. 
C) debit Unearned Revenue; credit Cash. 
D) debit Unearned Revenue; credit Revenue. 
E) debit Cash; credit Unearned Revenue Income.

Question 18

Which of the following accounts would appear in the Balance Sheet Credit column of a work sheet?

Accepted Answer

A) Equipment 
B) Wages Payable 
C) Cash 
D) Insurance Expense 
E) Sales 
A) Equipment 
B) Wages Payable 
C) Cash 
D) Insurance Expense 
E) Sales

Question 19

The Service Income account is classified as a(n)

Accepted Answer

A) asset. 
B) liability. 
C) revenue. 
D) expense. 
E) contra liability account. 
A) asset. 
B) liability. 
C) revenue. 
D) expense. 
E) contra liability account.

Question 20

The Income Summary account line on the work sheet

Accepted Answer

A) has a debit and a credit side. 
B) relates to adjusting merchandise inventory. 
C) is the only account in which we don't combine the debit and credit figures. 
D) is all of these. 
E) is none of these. 
A) has a debit and a credit side. 
B) relates to adjusting merchandise inventory. 
C) is the only account in which we don't combine the debit and credit figures. 
D) is all of these. 
E) is none of these.

Which of the following accounts are NOT located on the worksheet income statement?

Match the terms below with the correct definitions. -The credit account of the adjustment for accrued payroll

Match the terms below with the correct definitions. -Merchandise Inventory that appears in the Income Statement Debit column of the work sheet

If revenue is earned over two fiscal periods, one should initially credit the Unearned Revenue account.

If the physical inventory is less than the amount in the accounting inventory records, this is known as

The amount of the beginning merchandise inventory appears in the Balance Sheet Credit column of the work sheet.

The inventory system that makes an adjustment to the Merchandise Inventory account only when an actual physical inventory is taken

Match the terms below with the correct definitions. -An inventory system that debits Purchases when goods are bought

The first adjusting entry for merchandise inventory causes a zero balance in the Merchandise Inventory account when using the periodic inventory system.

The temporary account used when adjusting Merchandise Inventory using the periodic inventory system

At the time a firm adjusts Merchandise Inventory, the Income Summary account

The work sheet for a merchandising business is

At the end of the accounting period, the following should occur with supplies

Match the terms below with the correct definitions. -The debit account of the adjustment for accrued payroll

Cash appears in which worksheet column and has the following normal balance:

A baseball team records ticket revenue received in advance as Unearned Revenue. On the team's work sheet, the required adjusting entry is

Which of the following accounts would appear in the Balance Sheet Credit column of a work sheet?

The Service Income account is classified as a(n)

The Income Summary account line on the work sheet

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

Which of the following accounts are NOT located on the worksheet income statement?

Match the terms below with the correct definitions. -The credit account of the adjustment for accrued payroll

Match the terms below with the correct definitions. -Merchandise Inventory that appears in the Income Statement Debit column of the work sheet

If revenue is earned over two fiscal periods, one should initially credit the Unearned Revenue account.

If the physical inventory is less than the amount in the accounting inventory records, this is known as

The amount of the beginning merchandise inventory appears in the Balance Sheet Credit column of the work sheet.

The inventory system that makes an adjustment to the Merchandise Inventory account only when an actual physical inventory is taken

Match the terms below with the correct definitions. -An inventory system that debits Purchases when goods are bought

The first adjusting entry for merchandise inventory causes a zero balance in the Merchandise Inventory account when using the periodic inventory system.

The temporary account used when adjusting Merchandise Inventory using the periodic inventory system

At the time a firm adjusts Merchandise Inventory, the Income Summary account

The work sheet for a merchandising business is

At the end of the accounting period, the following should occur with supplies

Match the terms below with the correct definitions. -The debit account of the adjustment for accrued payroll

Cash appears in which worksheet column and has the following normal balance:

A baseball team records ticket revenue received in advance as Unearned Revenue. On the team's work sheet, the required adjusting entry is

Which of the following accounts would appear in the Balance Sheet Credit column of a work sheet?

The Service Income account is classified as a(n)

The Income Summary account line on the work sheet

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