Question 1

The normal balance of Rental Income is:

Accepted Answer

A) a credit. 
B) a debit. 
C) zero. 
D) dependent on the circumstances. 
A) a credit. 
B) a debit. 
C) zero. 
D) dependent on the circumstances.

Question 2

The income statement columns on a worksheet have subtotals as follows: debit column,$12,000,and credit column,$9,000.This indicates that:

Accepted Answer

A) the company incurred a net loss of $3,000. 
B) the company earned a net income of $1,500. 
C) there was an error in the unadjusted trial balance columns. 
D) there was an error in the income statement columns. 
A) the company incurred a net loss of $3,000. 
B) the company earned a net income of $1,500. 
C) there was an error in the unadjusted trial balance columns. 
D) there was an error in the income statement columns.

Question 3

When counting supplies,several boxes were missed.This would cause:

Accepted Answer

A) Supplies to be overstated. 
B) Supplies Expense to be overstated. 
C) Net Income to be overstated. 
D) All of the above are correct. 
A) Supplies to be overstated. 
B) Supplies Expense to be overstated. 
C) Net Income to be overstated. 
D) All of the above are correct.

Question 4

What inventory method is used when the inventory balance is updated only at the end of the accounting period?

Accepted Answer

A) Periodic 
B) Perpetual 
C) Income Summary 
D) Cost of Goods Sold 
A) Periodic 
B) Perpetual 
C) Income Summary 
D) Cost of Goods Sold

Question 5

When the adjustment for Unearned Rent Revenue is made:

Accepted Answer

A) liabilities decrease. 
B) revenue increases. 
C) assets decrease. 
D) Both A and B are correct. 
A) liabilities decrease. 
B) revenue increases. 
C) assets decrease. 
D) Both A and B are correct.

Question 6

For each of the following, identify in Column 1 the balance the account will have in the adjusted trial balance columns (debit or credit), in Column 2 the financial statement column(s) in which the account balance will be found (income statement or balance sheet), and in Column 3 the effect the account will have on the determination of net income (increase, decrease, or none).
-$$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \text { Prepaid Subscription } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 7

The adjusted trial balance on the worksheet:

Accepted Answer

A) contains balances from the permanent accounts. 
B) contains balances from the temporary accounts. 
C) contains balances for all accounts with balances. 
D) contains balances for accounts not requiring adjustments. 
A) contains balances from the permanent accounts. 
B) contains balances from the temporary accounts. 
C) contains balances for all accounts with balances. 
D) contains balances for accounts not requiring adjustments.

Question 8

Under the accrual system,revenue is recognized when earned.

Accepted Answer

A) True 
 B)False

Question 9

Sales would be found on the worksheet in 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 10

Ending inventory:

Accepted Answer

A) increases Cost of Goods Sold. 
B) decreases Cost of Goods Sold. 
C) does not affect Cost of Goods Sold. 
D) increases Sales. 
A) increases Cost of Goods Sold. 
B) decreases Cost of Goods Sold. 
C) does not affect Cost of Goods Sold. 
D) increases Sales.

Question 11

Prepare the general journal entry to record the adjustment for inventory:
 $$\begin{array} { l r } 
\text { Beginning inventory } & \$ 8,000 \
\text { Ending inventory } & 7,000
\end{array}$$

Accepted Answer

The answer of Prepare the general journal entry to record...

Question 12

For each of the following, identify in Column 1 the balance the account will have in the adjusted trial balance columns (debit or credit), in Column 2 the financial statement column(s) in which the account balance will be found (income statement or balance sheet), and in Column 3 the effect the account will have on the determination of net income (increase, decrease, or none).
-$$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \text { Petty Cash } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 13

Camping for Fun purchased merchandise costing $1,000.Calculate the cost of goods sold under the following different situations:
a)Beginning inventory $200 and no ending inventory.
b)Beginning inventory $250 and a $300 ending inventory.
c)No beginning inventory and a $150 ending inventory.

Accepted Answer

a)$1,200
b

Question 14

For each of the following, identify in Column 1 the balance the account will have in the adjusted trial balance columns (debit or credit), in Column 2 the financial statement column(s) in which the account balance will be found (income statement or balance sheet), and in Column 3 the effect the account will have on the determination of net income (increase, decrease, or none).
-$$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \text { Purchases } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 15

The amount of supplies used causes an increase in Supplies and a decrease in Expense.

Accepted Answer

A) True 
 B)False

Question 16

When using a periodic inventory method,what account is increased when you buy merchandise inventory?

Accepted Answer

A) Cost of Goods Sold 
B) Beginning Inventory 
C) Supplies 
D) Purchases 
A) Cost of Goods Sold 
B) Beginning Inventory 
C) Supplies 
D) Purchases

Question 17

For each of the following, identify in Column 1 the balance the account will have in the adjusted trial balance columns (debit or credit), in Column 2 the financial statement column(s) in which the account balance will be found (income statement or balance sheet), and in Column 3 the effect the account will have on the determination of net income (increase, decrease, or none).
-$$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \begin{array} { l } 
\text { Depreciation } \
\text { expense }
\end{array} & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 18

Recording the adjustment for supplies will:

Accepted Answer

A) increase the total liability and increase the total expenses. 
B) increase the total assets and increase the total expenses. 
C) decrease the total assets and increase the total expenses. 
D) decrease the merchandise inventory and decrease the total expenses. 
A) increase the total liability and increase the total expenses. 
B) increase the total assets and increase the total expenses. 
C) decrease the total assets and increase the total expenses. 
D) decrease the merchandise inventory and decrease the total expenses.

Question 19

Accumulated Depreciation - Buildings should be shown on the:

Accepted Answer

A) income statement. 
B) post-closing trial-balance. 
C) statement of owner's equity. 
D) The account does not appear on a financial statement since it is a temporary account. 
A) income statement. 
B) post-closing trial-balance. 
C) statement of owner's equity. 
D) The account does not appear on a financial statement since it is a temporary account.

Question 20

Depreciation on equipment was recorded twice this period.This would cause:

Accepted Answer

A) expenses to be overstated and total assets to be overstated. 
B) expenses to be overstated and total assets to be understated. 
C) expenses to be understated and total assets to be overstated. 
D) expenses to be understated and total assets to be understated. 
A) expenses to be overstated and total assets to be overstated. 
B) expenses to be overstated and total assets to be understated. 
C) expenses to be understated and total assets to be overstated. 
D) expenses to be understated and total assets to be understated.

Exam 11: Preparing a Worksheet for a Merchandise Company

The normal balance of Rental Income is:

The income statement columns on a worksheet have subtotals as follows: debit column,$12,000,and credit column,$9,000.This indicates that:

When counting supplies,several boxes were missed.This would cause:

What inventory method is used when the inventory balance is updated only at the end of the accounting period?

When the adjustment for Unearned Rent Revenue is made:

The adjusted trial balance on the worksheet:

Under the accrual system,revenue is recognized when earned.

Sales would be found on the worksheet in the:

Ending inventory:

Prepare the general journal entry to record the adjustment for inventory: Beginning inventory \ 8,000 Ending inventory 7,000

Camping for Fun purchased merchandise costing $1,000.Calculate the cost of goods sold under the following different situations: a)Beginning inventory $200 and no ending inventory. b)Beginning inventory $250 and a $300 ending inventory. c)No beginning inventory and a $150 ending inventory.

The amount of supplies used causes an increase in Supplies and a decrease in Expense.

When using a periodic inventory method,what account is increased when you buy merchandise inventory?

Recording the adjustment for supplies will:

Accumulated Depreciation - Buildings should be shown on the:

Depreciation on equipment was recorded twice this period.This would cause:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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