Question 1

Accumulated Depreciation is an asset account.

Accepted Answer

A) True 
 B)False

Question 2

Equipment with a cost of $150,000 has an accumulated depreciation of $50,000, and an estimated remaining life of 8 years. What is the annual straight-line depreciation expense for the equipment?

Accepted Answer

A)  $12,500 
B)  $25,000 
C)  $50,000 
D)  $100,000 
A)  $12,500 
B)  $25,000 
C)  $50,000 
D)  $100,000

Question 3

Rent expired at the end of an accounting period requires an adjustment.

Accepted Answer

A) True 
 B)False

Question 4

The adjustment for wages earned, but not yet paid is

Accepted Answer

A)  Debit Wages Expense, credit Cash. 
B)  Debit Accrued Wages, credit Wages Expense. 
C)  Debit Accrued Wages, credit Cash. 
D)  Debit Wages Expense, credit Accrued Wages. 
A)  Debit Wages Expense, credit Cash. 
B)  Debit Accrued Wages, credit Wages Expense. 
C)  Debit Accrued Wages, credit Cash. 
D)  Debit Wages Expense, credit Accrued Wages.

Question 5

Which of the following would cause a contra-asset to be credited and an expense debited?

Accepted Answer

A)  Recording an accrued expense 
B)  Recording the consumption of supplies 
C)  Recording the building depreciation 
D)  All of the above would have that effect. 
A)  Recording an accrued expense 
B)  Recording the consumption of supplies 
C)  Recording the building depreciation 
D)  All of the above would have that effect.

Question 6

Fred's Plumbing Service purchased tools for $4,000. They have an expected life of 40 months and no residual value. The adjusting journal entry for the month is

Accepted Answer

A)  Depreciation Expense 100 Equipment 100 
B)  Depreciation Expense 100 Accumulated Depreciation 100 
C)  Accumulated Depreciation 100 Depreciation Expense 100 
D)  Accumulated Depreciation 100 Equipment 100 
A)  Depreciation Expense 100 Equipment 100 
B)  Depreciation Expense 100 Accumulated Depreciation 100 
C)  Accumulated Depreciation 100 Depreciation Expense 100 
D)  Accumulated Depreciation 100 Equipment 100

Question 7

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 8

The adjustment to record supplies used during the period would be

Accepted Answer

A)  debit Supplies; credit Supplies Expense. 
B)  debit Supplies Expense; credit Cash. 
C)  debit Supplies Expense; credit Supplies. 
D)  debit Supplies; credit Cash. 
A)  debit Supplies; credit Supplies Expense. 
B)  debit Supplies Expense; credit Cash. 
C)  debit Supplies Expense; credit Supplies. 
D)  debit Supplies; credit Cash.

Question 9

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 10

If the Office 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 11

Online Service received its telephone bill for January, but is not going to pay the bill until February. What adjustment is needed to record the receipt of the bill?

Accepted Answer

A)  Debit Telephone Expense; credit Cash 
B)  Debit Accounts Payable; credit Telephone Expense 
C)  Debit Telephone Expense; credit Accounts Payable 
D)  Debit Accounts Payable; credit Cash 
A)  Debit Telephone Expense; credit Cash 
B)  Debit Accounts Payable; credit Telephone Expense 
C)  Debit Telephone Expense; credit Accounts Payable 
D)  Debit Accounts Payable; credit Cash

Question 12

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 book value of the equipment after the first year assuming straight-line depreciation?

Accepted Answer

$18,100 [$

Question 13

The book value of an asset equals the cost of the asset minus the accumulated depreciation.

Accepted Answer

A) True 
 B)False

Question 14

To compute net income or net loss, the debit and credit columns of the income statement section of the worksheet are totaled, and the difference is placed on the smaller side.

Accepted Answer

A) True 
 B)False

Question 15

On a worksheet, the income statement debit column totals $9,800 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 16

If a truck cost $13,000, has a residual value of $1,000, and has a useful life of 10 years, the depreciation for a month would be

Accepted Answer

A)  $1,200. 
B)  $108.33. 
C)  $1,300. 
D)  $100. 
A)  $1,200. 
B)  $108.33. 
C)  $1,300. 
D)  $100.

Question 17

Original cost of equipment is not adjusted on the worksheet.

Accepted Answer

A) True 
 B)False

Question 18

In the business world, financial statements are prepared from the

Accepted Answer

A)  trial balance. 
B)  worksheet income statement and balance sheet columns. 
C)  adjusted trial balance. 
D)  ledger. 
A)  trial balance. 
B)  worksheet income statement and balance sheet columns. 
C)  adjusted trial balance. 
D)  ledger.

Question 19

Depreciation of equipment was recorded twice this period. This would

Accepted Answer

A)  overstate expenses and overstate assets. 
B)  overstate expenses and understate assets. 
C)  understate expenses and overstate assets. 
D)  understate expenses and understate assets. 
A)  overstate expenses and overstate assets. 
B)  overstate expenses and understate assets. 
C)  understate expenses and overstate assets. 
D)  understate expenses and understate assets.

Question 20

On January 1 the Prepaid Insurance account had a balance of $7,000 that represented 7 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 [(7

Accumulated Depreciation is an asset account.

Equipment with a cost of $150,000 has an accumulated depreciation of $50,000, and an estimated remaining life of 8 years. What is the annual straight-line depreciation expense for the equipment?

Rent expired at the end of an accounting period requires an adjustment.

The adjustment for wages earned, but not yet paid is

Which of the following would cause a contra-asset to be credited and an expense debited?

Fred's Plumbing Service purchased tools for $4,000. They have an expected life of 40 months and no residual value. The adjusting journal entry for the month is

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

The adjustment to record supplies used during the period would be

The depreciation of equipment will require an adjustment that results in

If the Office Supplies account is not adjusted,

Online Service received its telephone bill for January, but is not going to pay the bill until February. What adjustment is needed to record the receipt of the bill?

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 book value of the equipment after the first year assuming straight-line depreciation?

The book value of an asset equals the cost of the asset minus the accumulated depreciation.

To compute net income or net loss, the debit and credit columns of the income statement section of the worksheet are totaled, and the difference is placed on the smaller side.

On a worksheet, the income statement debit column totals $9,800 and the credit column totals $10,000. Which of the following statements is CORRECT?

If a truck cost $13,000, has a residual value of $1,000, and has a useful life of 10 years, the depreciation for a month would be

Original cost of equipment is not adjusted on the worksheet.

In the business world, financial statements are prepared from the

Depreciation of equipment was recorded twice this period. This would

On January 1 the Prepaid Insurance account had a balance of $7,000 that represented 7 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.

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

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

Accumulated Depreciation is an asset account.

Equipment with a cost of $150,000 has an accumulated depreciation of $50,000, and an estimated remaining life of 8 years. What is the annual straight-line depreciation expense for the equipment?

Rent expired at the end of an accounting period requires an adjustment.

The adjustment for wages earned, but not yet paid is

Which of the following would cause a contra-asset to be credited and an expense debited?

Fred's Plumbing Service purchased tools for $4,000. They have an expected life of 40 months and no residual value. The adjusting journal entry for the month is

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

The adjustment to record supplies used during the period would be

The depreciation of equipment will require an adjustment that results in

If the Office Supplies account is not adjusted,

Online Service received its telephone bill for January, but is not going to pay the bill until February. What adjustment is needed to record the receipt of the bill?

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 book value of the equipment after the first year assuming straight-line depreciation?

The book value of an asset equals the cost of the asset minus the accumulated depreciation.

To compute net income or net loss, the debit and credit columns of the income statement section of the worksheet are totaled, and the difference is placed on the smaller side.

On a worksheet, the income statement debit column totals $9,800 and the credit column totals $10,000. Which of the following statements is CORRECT?

If a truck cost $13,000, has a residual value of $1,000, and has a useful life of 10 years, the depreciation for a month would be

Original cost of equipment is not adjusted on the worksheet.

In the business world, financial statements are prepared from the

Depreciation of equipment was recorded twice this period. This would

On January 1 the Prepaid Insurance account had a balance of $7,000 that represented 7 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.

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