Question 1

The worksheet contains a debit and credit column for making adjustments to accounts that need updating.

Accepted Answer

A) True 
 B)False

Question 2

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 3

The accumulated depreciation will appear in which of the following worksheet statement columns?

Accepted Answer

A)  The Income Statement debit 
B)  The Income Statement credit 
C)  The Balance Sheet debit 
D)  The Balance Sheet credit 
A)  The Income Statement debit 
B)  The Income Statement credit 
C)  The Balance Sheet debit 
D)  The Balance Sheet credit

Question 4

Deer and Fishing Company owns $6,000 of office furniture. Accumulated Depreciation had a balance of $3,000 before recording this year's depreciation. Depreciation Expense for the current year is $1,000. What is the book value at the end of the year?

Accepted Answer

A)  $3,000 
B)  $6,000 
C)  $2,000 
D)  $1,000 
A)  $3,000 
B)  $6,000 
C)  $2,000 
D)  $1,000

Question 5

Which of the following is prepared last?

Accepted Answer

A)  Income statement 
B)  Balance sheet 
C)  Worksheet 
D)  Statement of owner's equity 
A)  Income statement 
B)  Balance sheet 
C)  Worksheet 
D)  Statement of owner's equity

Question 6

Morgan's Consulting bought a scanner worth $5,000 with an expected life of 7 years and a residual value of $1,500. What is the adjusting journal entry for the first year?

Accepted Answer

A)  Scanner 500 Depreciation Expense 500 
B)  Scanner 500 Accumulated Depreciation, Computer 500 
C)  Depreciation Expense 500 Scanner 500 
D)  Depreciation Expense 500 Accumulated Depreciation, Scanner 500 
A)  Scanner 500 Depreciation Expense 500 
B)  Scanner 500 Accumulated Depreciation, Computer 500 
C)  Depreciation Expense 500 Scanner 500 
D)  Depreciation Expense 500 Accumulated Depreciation, Scanner 500

Question 7

Equipment was purchased for $20,000, residual value is $1,000 and it is expected that the useful life is 10 years. What is the depreciation adjustment after the first year assuming straight-line depreciation?

Accepted Answer

$1,900 [$2

Question 8

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 9

Adjusting journal entries are

Accepted Answer

A)  prepared from the worksheet, entered in the general journal, then posted. 
B)  prepared before the completion of the worksheet. 
C)  not needed if a worksheet has been completed. 
D)  the last step before starting the next year's transactions. 
A)  prepared from the worksheet, entered in the general journal, then posted. 
B)  prepared before the completion of the worksheet. 
C)  not needed if a worksheet has been completed. 
D)  the last step before starting the next year's transactions.

Question 10

Book value of an asset is always the same as the market value.

Accepted Answer

A) True 
 B)False

Question 11

It is not necessary to ensure that each adjusting entry balances.

Accepted Answer

A) True 
 B)False

Question 12

The worksheet contains a trial balance.

Accepted Answer

A) True 
 B)False

Question 13

The order of the steps to prepare the worksheet are

Accepted Answer

A)  prepare the trial balance, complete adjustments, prepare the adjusted trial balance, extend the respective totals to the Income Statement and Balance Sheet columns. 
B)  complete the adjustments, prepare the adjusted trial balance, prepare the trial balance, extend the respective totals to the Income Statement and Balance Sheet columns. 
C)  extend the totals to the Income Statement and Balance Sheet columns, prepare the trial balance, complete the adjustments, prepare the adjusted trial balance. 
D)  prepare the adjusted trial balance, complete the adjustments, prepare the trial balance, extend the respective totals to the Income Statement and Balance Sheet columns. 
A)  prepare the trial balance, complete adjustments, prepare the adjusted trial balance, extend the respective totals to the Income Statement and Balance Sheet columns. 
B)  complete the adjustments, prepare the adjusted trial balance, prepare the trial balance, extend the respective totals to the Income Statement and Balance Sheet columns. 
C)  extend the totals to the Income Statement and Balance Sheet columns, prepare the trial balance, complete the adjustments, prepare the adjusted trial balance. 
D)  prepare the adjusted trial balance, complete the adjustments, prepare the trial balance, extend the respective totals to the Income Statement and Balance Sheet columns.

Question 14

An adjustment for Prepaid Rent would indicate

Accepted Answer

A)  the amount originally paid. 
B)  the amount expired. 
C)  the amount on hand. 
D)  the amount of the trial balance. 
A)  the amount originally paid. 
B)  the amount expired. 
C)  the amount on hand. 
D)  the amount of the trial balance.

Question 15

Depreciation Expense would be found on which of the following financial statements?

Accepted Answer

A)  Balance sheet 
B)  Income statement 
C)  Owner's equity statement 
D)  Interim Balance sheet 
A)  Balance sheet 
B)  Income statement 
C)  Owner's equity statement 
D)  Interim Balance sheet

Question 16

Marty's Bakery has a daily payroll of $400, and all employees are paid on Thursday afternoons. Assume that the last day of the month falls on Wednesday. Which of the following adjusting journal entries is needed on that date?

Accepted Answer

A)  Salaries Expense 1,200 Accrued Salaries Payable 1,200 
B)  Salaries Expense 800 Cash 800 
C)  Salaries Expense 400 Accrued Salaries Payable 400 
D)  Accrued Salaries Payable 600 Salaries Expense 600 
A)  Salaries Expense 1,200 Accrued Salaries Payable 1,200 
B)  Salaries Expense 800 Cash 800 
C)  Salaries Expense 400 Accrued Salaries Payable 400 
D)  Accrued Salaries Payable 600 Salaries Expense 600

Question 17

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 18

The Income Statement should be prepared before the worksheet.

Accepted Answer

A) True 
 B)False

Question 19

A form used to organize and check data before preparing financial reports is known as a(n)

Accepted Answer

A)  trial balance. 
B)  income statement. 
C)  balance sheet. 
D)  worksheet. 
A)  trial balance. 
B)  income statement. 
C)  balance sheet. 
D)  worksheet.

Question 20

The amount of supplies used during the period would be shown in the adjustment columns of the worksheet.

Accepted Answer

A) True 
 B)False

The worksheet contains a debit and credit column for making adjustments to accounts that need updating.

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

The accumulated depreciation will appear in which of the following worksheet statement columns?

Deer and Fishing Company owns $6,000 of office furniture. Accumulated Depreciation had a balance of $3,000 before recording this year's depreciation. Depreciation Expense for the current year is $1,000. What is the book value at the end of the year?

Which of the following is prepared last?

Morgan's Consulting bought a scanner worth $5,000 with an expected life of 7 years and a residual value of $1,500. What is the adjusting journal entry for the first year?

Equipment was purchased for $20,000, residual value is $1,000 and it is expected that the useful life is 10 years. What is the depreciation adjustment after the first year assuming straight-line depreciation?

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

Adjusting journal entries are

Book value of an asset is always the same as the market value.

It is not necessary to ensure that each adjusting entry balances.

The worksheet contains a trial balance.

The order of the steps to prepare the worksheet are

An adjustment for Prepaid Rent would indicate

Depreciation Expense would be found on which of the following financial statements?

Marty's Bakery has a daily payroll of $400, and all employees are paid on Thursday afternoons. Assume that the last day of the month falls on Wednesday. Which of the following adjusting journal entries is needed on that date?

All of the following are reasons to adjust the account balances at the end of the period EXCEPT

The Income Statement should be prepared before the worksheet.

A form used to organize and check data before preparing financial reports is known as a(n)

The amount of supplies used during the period would be shown in the adjustment columns of the worksheet.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

Exam 4: The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The worksheet contains a debit and credit column for making adjustments to accounts that need updating.

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

The accumulated depreciation will appear in which of the following worksheet statement columns?

Deer and Fishing Company owns $6,000 of office furniture. Accumulated Depreciation had a balance of $3,000 before recording this year's depreciation. Depreciation Expense for the current year is $1,000. What is the book value at the end of the year?

Which of the following is prepared last?

Morgan's Consulting bought a scanner worth $5,000 with an expected life of 7 years and a residual value of $1,500. What is the adjusting journal entry for the first year?

Equipment was purchased for $20,000, residual value is $1,000 and it is expected that the useful life is 10 years. What is the depreciation adjustment after the first year assuming straight-line depreciation?

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

Adjusting journal entries are

Book value of an asset is always the same as the market value.

It is not necessary to ensure that each adjusting entry balances.

The worksheet contains a trial balance.

The order of the steps to prepare the worksheet are

An adjustment for Prepaid Rent would indicate

Depreciation Expense would be found on which of the following financial statements?

Marty's Bakery has a daily payroll of $400, and all employees are paid on Thursday afternoons. Assume that the last day of the month falls on Wednesday. Which of the following adjusting journal entries is needed on that date?

All of the following are reasons to adjust the account balances at the end of the period EXCEPT

The Income Statement should be prepared before the worksheet.

A form used to organize and check data before preparing financial reports is known as a(n)

The amount of supplies used during the period would be shown in the adjustment columns of the worksheet.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters