Question 1

If an adjustment for expired rent is not recorded,the firm's expenses will be overstated.

Accepted Answer

A) True 
 B)False

Question 2

Preparation of a worksheet eliminates the necessity of preparing an income statement and a balance sheet.

Accepted Answer

A) True 
 B)False

Question 3

The Supplies account had a balance of $1,200 when a physical count indicated that supplies on hand totaled $400.This means that supplies in the amount of ____________________ were used during the accounting period.

Accepted Answer

The answer of The Supplies account had a balance of...

Question 4

If long-term assets are not adjusted,expenses on the income statement

Accepted Answer

A)  will be overstated. 
B)  will be understated. 
C)  will not be affected. 
D)  may be either overstated or understated. 
A)  will be overstated. 
B)  will be understated. 
C)  will not be affected. 
D)  may be either overstated or understated.

Question 5

The difference between the debit balance of the Equipment account and the credit balance of the Accumulated Depreciation-Equipment account is called the ____________________ of an asset.

Accepted Answer

The answer of The difference between the debit balance of...

Question 6

On October 1,2016,Jay Walker Company purchased a one-year insurance policy for $660.The correct adjusting entry on December 31,2016,is

Accepted Answer

A)  debit Insurance Expense $660;credit Prepaid Insurance $660 
B)  debit Insurance Expense $495;credit Prepaid Insurance $495 
C)  debit Prepaid Insurance $55;credit Insurance Expense $55 
D)  debit Insurance Expense $165;credit Prepaid Insurance $165 
A)  debit Insurance Expense $660;credit Prepaid Insurance $660 
B)  debit Insurance Expense $495;credit Prepaid Insurance $495 
C)  debit Prepaid Insurance $55;credit Insurance Expense $55 
D)  debit Insurance Expense $165;credit Prepaid Insurance $165

Question 7

When the ____________________ method of depreciation is used,an equal amount of depreciation is charged to each accounting period during the asset's useful life.

Accepted Answer

The answer of When the ____________________ method of depreciation is...

Question 8

The balance of the owner's drawing account is extended to the Income Statement Debit column of the worksheet.

Accepted Answer

A) True 
 B)False

Question 9

An accumulated depreciation account has a normal ____________________ balance.

Accepted Answer

The answer of An accumulated depreciation account has a normal...

Question 10

On a worksheet,the adjusting entry to account for depreciation of equipment consists of

Accepted Answer

A)  a debit to Depreciation Expense and a credit to Equipment. 
B)  a debit to Depreciation Expense and a credit to Accumulated Depreciation. 
C)  a debit to Equipment and a credit to Accumulated Depreciation. 
D)  a debit to Accumulated Depreciation and a credit to Equipment. 
A)  a debit to Depreciation Expense and a credit to Equipment. 
B)  a debit to Depreciation Expense and a credit to Accumulated Depreciation. 
C)  a debit to Equipment and a credit to Accumulated Depreciation. 
D)  a debit to Accumulated Depreciation and a credit to Equipment.

Question 11

A total of $3,200 in supplies was purchased during the year.At the end of the year $700 of the supplies were left.The adjusting entry needed at the end of the year is:

Accepted Answer

A)  debit Supplies $2,500;credit Supplies Expense $2,500 
B)  debit Supplies Expense $3,200;credit Supplies $3,200 
C)  debit Supplies Expense $700;credit Supplies $700 
D)  debit Supplies Expense $2,500;credit Supplies $2,500 
A)  debit Supplies $2,500;credit Supplies Expense $2,500 
B)  debit Supplies Expense $3,200;credit Supplies $3,200 
C)  debit Supplies Expense $700;credit Supplies $700 
D)  debit Supplies Expense $2,500;credit Supplies $2,500

Question 12

A(n)____________________ is prepared at the end of each accounting period to organize and summarize the data needed for the preparation of the financial statements.

Accepted Answer

The answer of A(n)____________________ is prepared at the end of...

Question 13

On January 1,ABC Catering purchased an oven for $2,000.The oven was expected to last five years and have no salvage value.Select the adjusting entry made on December 31,to record the depreciation of the oven for one year.

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 14

On a worksheet,the adjusted balance of the revenue account Fees Income would be extended to:

Accepted Answer

A)  the Income Statement Debit column. 
B)  the Balance Sheet Credit column. 
C)  the Balance Sheet Debit column. 
D)  the Income Statement Credit column. 
A)  the Income Statement Debit column. 
B)  the Balance Sheet Credit column. 
C)  the Balance Sheet Debit column. 
D)  the Income Statement Credit column.

Question 15

The partial worksheet for the Lorado Insurance Agency for the month ended October 31,2016,is shown below.Using this data,prepare an income statement,a statement of owner's equity,and a balance sheet.The owner made no additional investments during the month.

Accepted Answer

The answer of The partial worksheet for the Lorado Insurance...

Question 16

Letters are used to label the debit and credit parts of an adjustment on the worksheet.

Accepted Answer

A) True 
 B)False

Question 17

On a worksheet,the adjusted balance of a contra asset account would be extended to

Accepted Answer

A)  the Balance Sheet Debit column. 
B)  the Balance Sheet Credit column. 
C)  the Income Statement Debit column. 
D)  the Income Statement Credit column. 
A)  the Balance Sheet Debit column. 
B)  the Balance Sheet Credit column. 
C)  the Income Statement Debit column. 
D)  the Income Statement Credit column.

Question 18

If a worksheet is prepared at the end of the accounting year,

Accepted Answer

A)  preparation of the financial statements is not required. 
B)  the adjusting entries do not need to be journalized. 
C)  only a balance sheet is required. 
D)  the financial statements are prepared using the worksheet data. 
A)  preparation of the financial statements is not required. 
B)  the adjusting entries do not need to be journalized. 
C)  only a balance sheet is required. 
D)  the financial statements are prepared using the worksheet data.

Question 19

On a worksheet,the adjusted balance of the Prepaid Rent account is extended to the:

Accepted Answer

A)  Income Statement Debit column. 
B)  Income Statement Credit column. 
C)  Balance Sheet Debit column. 
D)  Balance Sheet Credit column. 
A)  Income Statement Debit column. 
B)  Income Statement Credit column. 
C)  Balance Sheet Debit column. 
D)  Balance Sheet Credit column.

Question 20

Which of the following need not be completed separately if a worksheet is prepared?

Accepted Answer

A)  a trial balance 
B)  an income statement 
C)  a balance sheet 
D)  a statement of owner's equity 
A)  a trial balance 
B)  an income statement 
C)  a balance sheet 
D)  a statement of owner's equity

Exam 5: Adjustments and the Worksheet

If an adjustment for expired rent is not recorded,the firm's expenses will be overstated.

Preparation of a worksheet eliminates the necessity of preparing an income statement and a balance sheet.

The Supplies account had a balance of $1,200 when a physical count indicated that supplies on hand totaled $400.This means that supplies in the amount of ____________________ were used during the accounting period.

If long-term assets are not adjusted,expenses on the income statement

The difference between the debit balance of the Equipment account and the credit balance of the Accumulated Depreciation-Equipment account is called the ____________________ of an asset.

On October 1,2016,Jay Walker Company purchased a one-year insurance policy for $660.The correct adjusting entry on December 31,2016,is

When the ____________________ method of depreciation is used,an equal amount of depreciation is charged to each accounting period during the asset's useful life.

The balance of the owner's drawing account is extended to the Income Statement Debit column of the worksheet.

An accumulated depreciation account has a normal ____________________ balance.

On a worksheet,the adjusting entry to account for depreciation of equipment consists of

A total of $3,200 in supplies was purchased during the year.At the end of the year $700 of the supplies were left.The adjusting entry needed at the end of the year is:

A(n)____________________ is prepared at the end of each accounting period to organize and summarize the data needed for the preparation of the financial statements.

On January 1,ABC Catering purchased an oven for $2,000.The oven was expected to last five years and have no salvage value.Select the adjusting entry made on December 31,to record the depreciation of the oven for one year.

On a worksheet,the adjusted balance of the revenue account Fees Income would be extended to:

The partial worksheet for the Lorado Insurance Agency for the month ended October 31,2016,is shown below.Using this data,prepare an income statement,a statement of owner's equity,and a balance sheet.The owner made no additional investments during the month.

Letters are used to label the debit and credit parts of an adjustment on the worksheet.

On a worksheet,the adjusted balance of a contra asset account would be extended to

If a worksheet is prepared at the end of the accounting year,

On a worksheet,the adjusted balance of the Prepaid Rent account is extended to the:

Which of the following need not be completed separately if a worksheet is prepared?

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analyses

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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