Question 1

Allowance for Doubtful Accounts is reported in the

Accepted Answer

A) Liabilities section of the balance sheet. 
B) Assets section of the balance sheet. 
C) Operating Expenses section of the income statement. 
D) Cost of Goods Sold section of the income statement. 
A) Liabilities section of the balance sheet. 
B) Assets section of the balance sheet. 
C) Operating Expenses section of the income statement. 
D) Cost of Goods Sold section of the income statement.

Question 2

Millie's Bakery employees earn $4,500 a week for a five-day work week and are paid every Friday. If December 31 falls on a Wednesday, calculate the amount that is owed and select the adjusting entry needed to record the owed but unpaid salaries as of December 31.

Accepted Answer

A) a debit to Salaries Payable for $900 and a credit to Salaries Expense for $900. 
B) a debit to Salaries Expense for $2,700 and a credit to Salaries Payable for $2,700. 
C) a debit to Income Summary for $2,700 and a credit to Salaries Payable for $2,700. 
D) a debit to Salaries Expense for $4,500 and a credit to Salaries Payable for $4,500. 
A) a debit to Salaries Payable for $900 and a credit to Salaries Expense for $900. 
B) a debit to Salaries Expense for $2,700 and a credit to Salaries Payable for $2,700. 
C) a debit to Income Summary for $2,700 and a credit to Salaries Payable for $2,700. 
D) a debit to Salaries Expense for $4,500 and a credit to Salaries Payable for $4,500.

Question 3

The debit and credit amounts for the Income Summary account are combined into one number in the Income Statement section of the worksheet.

Accepted Answer

A) True 
 B)False

Question 4

On October 1, 2019, Paige Turner Publishing received $5,400 in cash for subscriptions covering one year, recording the entry as a debit to Cash and a credit to Unearned Subscriptions. The correct adjusting entry at December 31, 2019, is

Accepted Answer

A) Debit Unearned Subscriptions $1,350; credit Subscriptions Income $1,350. 
B) Debit Unearned Subscriptions $450; credit Subscriptions Income $450. 
C) Debit Unearned Subscriptions $5,400; credit Subscriptions Income $5,400. 
D) Debit Subscriptions Income $1,350; credit Unearned Subscriptions $1,350. 
A) Debit Unearned Subscriptions $1,350; credit Subscriptions Income $1,350. 
B) Debit Unearned Subscriptions $450; credit Subscriptions Income $450. 
C) Debit Unearned Subscriptions $5,400; credit Subscriptions Income $5,400. 
D) Debit Subscriptions Income $1,350; credit Unearned Subscriptions $1,350.

Question 5

Accrued income is income that has been

Accepted Answer

A) budgeted for the fiscal period. 
B) earned but not received. 
C) received but not earned. 
D) earned and received. 
A) budgeted for the fiscal period. 
B) earned but not received. 
C) received but not earned. 
D) earned and received.

Question 6

Which of the following statements is not correct?

Accepted Answer

A) The cost less the salvage value equals the depreciable base of a long-term asset. 
B) Each adjustment for an accrued expense includes a credit to a liability account. 
C) If a firm records prepaid expense items in an expense account when they pay for them, their adjustment at the end of the period to record the unexpired portion would include a debit to an asset account and a credit to an expense account. 
D) Uncollectible Accounts Expense is a contra asset account. 
A) The cost less the salvage value equals the depreciable base of a long-term asset. 
B) Each adjustment for an accrued expense includes a credit to a liability account. 
C) If a firm records prepaid expense items in an expense account when they pay for them, their adjustment at the end of the period to record the unexpired portion would include a debit to an asset account and a credit to an expense account. 
D) Uncollectible Accounts Expense is a contra asset account.

Question 7

The adjusting entry to record accrued interest on a note receivable increases the Interest Receivable account and increases the ________ account.

Accepted Answer

The answer of The adjusting entry to record accrued interest...

Question 8

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment on December 31, 2019. On August 1, 2019, the firm paid a premium of
$5,640 in cash for a 1-year insurance policy.

Accepted Answer

Debit Insurance Expe

Question 9

On September 1, 2019, a firm accepted a 6-month, 8% note for $12,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2019, is

Accepted Answer

A) $960.00. 
B) No accrual is necessary. 
C) $320.00. 
D) $240.00. 
A) $960.00. 
B) No accrual is necessary. 
C) $320.00. 
D) $240.00.

Question 10

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. During the year, the firm had net credit sales of $890,000. Past experience shows that 0.5 percent of the firm's net credit sales result in uncollectible accounts.

Accepted Answer

Debit Uncollectible

Question 11

The Supplies account has a trial balance of $3,136. A year-end inventory shows $1,734 worth of supplies left at the end of the year. The correct adjusting entry is:

Accepted Answer

A) debit Supplies $1,402; credit Supplies Expense $1,402 
B) debit Supplies Expense $1,734; credit Prepaid Supplies $1,734 
C) debit Supplies Expense $3,136; credit Supplies $3,136 
D) debit Supplies Expense $1,402; credit Supplies $1,402 
A) debit Supplies $1,402; credit Supplies Expense $1,402 
B) debit Supplies Expense $1,734; credit Prepaid Supplies $1,734 
C) debit Supplies Expense $3,136; credit Supplies $3,136 
D) debit Supplies Expense $1,402; credit Supplies $1,402

Question 12

The balance of the Merchandise Inventory account that appears in the Trial Balance section of the worksheet represents the stock of goods on hand at the beginning of the current period.

Accepted Answer

A) True 
 B)False

Question 13

Stan Still Stationery Store's employees are paid every Friday for a five day work week and are paid a total of $1,625 per day. If December 31, 2019, is on a Tuesday, the amount of the adjusting entry for accrued wages is:

Accepted Answer

A) $4,875 
B) $3,250 
C) $8,125 
D) $1,625 
A) $4,875 
B) $3,250 
C) $8,125 
D) $1,625

Question 14

When the accrual basis of accounting is used, expenses are recognized only in the period during which they are paid.

Accepted Answer

A) True 
 B)False

Question 15

Under a periodic inventory system, to remove the beginning inventory from the books, the Income Summary account is credited for the amount of the beginning inventory.

Accepted Answer

A) True 
 B)False

Question 16

The ending merchandise inventory is recorded on the worksheet in the

Accepted Answer

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

Question 17

To determine the amount of the annual depreciation, the depreciable base is divided by the number of years in the asset's________ .

Accepted Answer

The answer of To determine the amount of the annual...

Question 18

After the two adjusting entries for merchandise inventory for Marley Motorcycles have been entered on the worksheet, the Income Summary account in the Adjusted Trial Balance section has a debit of $65,000 and a credit of $73,000. The amount of merchandise inventory at the beginning of the year is:

Accepted Answer

A) $8,000. 
B) $65,000. 
C) $73,000. 
D) $138,000. 
A) $8,000. 
B) $65,000. 
C) $73,000. 
D) $138,000.

Question 19

With the accrual basis of accounting, revenue from a credit sale is recognized

Accepted Answer

A) each time a payment on an account balance is received. 
B) on the date the account is collected in full. 
C) either on the date of the sale or when the amount of the sale is collected. 
D) on the date of the sale. 
A) each time a payment on an account balance is received. 
B) on the date the account is collected in full. 
C) either on the date of the sale or when the amount of the sale is collected. 
D) on the date of the sale.

Question 20

Unearned Revenue has a credit balance in the Trial Balance section of the worksheet of $8,300 and a debit of $600 in the adjustments section of the worksheet, the balance of Unearned Revenue in the Adjusted Trial Balance section of the worksheet is a

Accepted Answer

A) $600 debit. 
B) $7,700 credit. 
C) $8,900 credit. 
D) $7,700 debit. 
A) $600 debit. 
B) $7,700 credit. 
C) $8,900 credit. 
D) $7,700 debit.

Exam 12: Accruals, Deferrals, and the Worksheet

Allowance for Doubtful Accounts is reported in the

Millie's Bakery employees earn $4,500 a week for a five-day work week and are paid every Friday. If December 31 falls on a Wednesday, calculate the amount that is owed and select the adjusting entry needed to record the owed but unpaid salaries as of December 31.

The debit and credit amounts for the Income Summary account are combined into one number in the Income Statement section of the worksheet.

On October 1, 2019, Paige Turner Publishing received $5,400 in cash for subscriptions covering one year, recording the entry as a debit to Cash and a credit to Unearned Subscriptions. The correct adjusting entry at December 31, 2019, is

Accrued income is income that has been

Which of the following statements is not correct?

The adjusting entry to record accrued interest on a note receivable increases the Interest Receivable account and increases the ________ account.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment on December 31, 2019. On August 1, 2019, the firm paid a premium of $5,640 in cash for a 1-year insurance policy.

On September 1, 2019, a firm accepted a 6-month, 8% note for $12,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2019, is

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. During the year, the firm had net credit sales of $890,000. Past experience shows that 0.5 percent of the firm's net credit sales result in uncollectible accounts.

The Supplies account has a trial balance of $3,136. A year-end inventory shows $1,734 worth of supplies left at the end of the year. The correct adjusting entry is:

The balance of the Merchandise Inventory account that appears in the Trial Balance section of the worksheet represents the stock of goods on hand at the beginning of the current period.

Stan Still Stationery Store's employees are paid every Friday for a five day work week and are paid a total of $1,625 per day. If December 31, 2019, is on a Tuesday, the amount of the adjusting entry for accrued wages is:

When the accrual basis of accounting is used, expenses are recognized only in the period during which they are paid.

Under a periodic inventory system, to remove the beginning inventory from the books, the Income Summary account is credited for the amount of the beginning inventory.

The ending merchandise inventory is recorded on the worksheet in the

To determine the amount of the annual depreciation, the depreciable base is divided by the number of years in the asset's________ .

After the two adjusting entries for merchandise inventory for Marley Motorcycles have been entered on the worksheet, the Income Summary account in the Adjusted Trial Balance section has a debit of $65,000 and a credit of $73,000. The amount of merchandise inventory at the beginning of the year is:

With the accrual basis of accounting, revenue from a credit sale is recognized

Unearned Revenue has a credit balance in the Trial Balance section of the worksheet of $8,300 and a debit of $600 in the adjustments section of the worksheet, the balance of Unearned Revenue in the Adjusted Trial Balance section of the worksheet is a

Accounting: The Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and Teh 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

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 Analysis

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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