Question 1

The Accumulated Depreciation account is a contra asset account that is reported on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 2

On January 1, 2014, Mudhoney Inc. purchased equipment for $45,000. The company is depreciating the equipment at the rate of $750 per month. At January 31, 2015, the balance in Accumulated Depreciation is

Accepted Answer

A) $750. 
B) $9,000. 
C) $9,750. 
D) $35,250. 
A) $750. 
B) $9,000. 
C) $9,750. 
D) $35,250.

Question 3

An adjusting entry

Accepted Answer

A) affects two balance sheet accounts. 
B) affects two income statement accounts. 
C) affects a balance sheet account and an income statement account. 
D) is always a compound entry. 
A) affects two balance sheet accounts. 
B) affects two income statement accounts. 
C) affects a balance sheet account and an income statement account. 
D) is always a compound entry.

Question 4

Adjusting entries can be classified as

Accepted Answer

A) postponements and advances. 
B) accruals and deferrals. 
C) deferrals and postponements. 
D) accruals and advances. 
A) postponements and advances. 
B) accruals and deferrals. 
C) deferrals and postponements. 
D) accruals and advances.

Question 5

An adjusted trial balance

Accepted Answer

A) is prepared after the financial statements are completed. 
B) proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made. 
C) is a required financial statement under generally accepted accounting principles. 
D) cannot be used to prepare financial statements. 
A) is prepared after the financial statements are completed. 
B) proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made. 
C) is a required financial statement under generally accepted accounting principles. 
D) cannot be used to prepare financial statements.

Question 6

The time period assumption is also referred to as the

Accepted Answer

A) calendar assumption. 
B) cyclicity assumption. 
C) periodicity assumption. 
D) fiscal assumption. 
A) calendar assumption. 
B) cyclicity assumption. 
C) periodicity assumption. 
D) fiscal assumption.

Question 7

Accounting time periods that are one year in length are referred to as interim periods.

Accepted Answer

A) True 
 B)False

The Accumulated Depreciation account is a contra asset account that is reported on the balance sheet.

On January 1, 2014, Mudhoney Inc. purchased equipment for $45,000. The company is depreciating the equipment at the rate of $750 per month. At January 31, 2015, the balance in Accumulated Depreciation is

An adjusting entry

Adjusting entries can be classified as

An adjusted trial balance

The time period assumption is also referred to as the

Accounting time periods that are one year in length are referred to as interim periods.

Accounting in Action

The Recording Process

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 3: Adjusting the Accounts

The Accumulated Depreciation account is a contra asset account that is reported on the balance sheet.

On January 1, 2014, Mudhoney Inc. purchased equipment for $45,000. The company is depreciating the equipment at the rate of $750 per month. At January 31, 2015, the balance in Accumulated Depreciation is

An adjusting entry

Adjusting entries can be classified as

An adjusted trial balance

The time period assumption is also referred to as the

Accounting time periods that are one year in length are referred to as interim periods.

Accounting in Action

The Recording Process

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters