Question 1

A depreciable asset's original cost can typically be obtained by referring to the balance sheet.

Accepted Answer

A) True 
 B)False

Question 2

The dollar amount of Cash on the trial balance and on the adjusted trial balance should be identical.

Accepted Answer

A) True 
 B)False

Question 3

What broad purposes are accomplished by closing entries?

Accepted Answer

Closing entries zero out all n

Question 4

The end of year income statement for Plymouth Company showed rent expense of $21,600 and salaries expense of $14,400.The related balance sheet account balances at year end for last year and this year were as follows:
 $\begin{array}{|l|r|r|}
\hline & \text { This Year } &{\text { Last Year }} \
\hline & &  \
\text { Prepaid rent } & \$ 2,400 & \$  0 \
\text { Salaries payable } & 800 &  1,600 \
\hline
\end{array}$ 
a.Compute cash paid for rent during the year.
b.Compute cash paid for salaries during the year.

Accepted Answer

a.$24,000 ($2,400 +

Question 5

When an asset's depreciation is recorded,it's carrying value increases.

Accepted Answer

A) True 
 B)False

Question 6

Match each definition with the correct term below.
-Unearned revenues

Accepted Answer

A) Used to determine that all temporary accounts have zero balances. 
B) The postponement of the recognition of an expense already paid. 
C) Accounts that begin each accounting period with a zero balance. 
D) Increases in stockholders' equity resulting from selling goods. 
E) Revenue that is received in advance of goods delivery or service performance.
F)Accounts that carry their end-of-period balances into the next accounting period.
G)The recognition of a revenue or an expense that has arisen but not been recorded during the accounting period.
H)Decreases in stockholders' equity resulting from the cost of selling goods.
I)Used after making adjusting journal entries to ensure that debits equal credits.
J)Revenues that a company has earned by performing a service or delivering goods but for which no entry 
A) Used to determine that all temporary accounts have zero balances. 
B) The postponement of the recognition of an expense already paid. 
C) Accounts that begin each accounting period with a zero balance. 
D) Increases in stockholders' equity resulting from selling goods. 
E) Revenue that is received in advance of goods delivery or service performance.
F)Accounts that carry their end-of-period balances into the next accounting period.
G)The recognition of a revenue or an expense that has arisen but not been recorded during the accounting period.
H)Decreases in stockholders' equity resulting from the cost of selling goods.
I)Used after making adjusting journal entries to ensure that debits equal credits.
J)Revenues that a company has earned by performing a service or delivering goods but for which no entry

Question 7

The periodicity assumption recognizes that

Accepted Answer

A)  the company may continue indefinitely. 
B)  all financial statements should cover a fiscal year. 
C)  it is useful to estimate the business's net income in terms of accounting periods. 
D)  the value of an asset may vary from month to month. 
A)  the company may continue indefinitely. 
B)  all financial statements should cover a fiscal year. 
C)  it is useful to estimate the business's net income in terms of accounting periods. 
D)  the value of an asset may vary from month to month.

Question 8

Which of the following pairs of accounts could not be included in the same adjusting entry?

Accepted Answer

A)  Unearned Revenue and Revenue from Services 
B)  Wages Expense and Wages Payable 
C)  Interest Expense and Interest Receivable 
D)  Rent Expense and Rent Payable 
A)  Unearned Revenue and Revenue from Services 
B)  Wages Expense and Wages Payable 
C)  Interest Expense and Interest Receivable 
D)  Rent Expense and Rent Payable

Question 9

Failure to record depreciation at year end will result in an

Accepted Answer

A)  understatement of total assets. 
B)  overstatement of total assets. 
C)  overstatement of expenses. 
D)  overstatement of total liabilities. 
A)  understatement of total assets. 
B)  overstatement of total assets. 
C)  overstatement of expenses. 
D)  overstatement of total liabilities.

Question 10

The cost of doing business is also known as

Accepted Answer

A)  a liability. 
B)  an expense. 
C)  revenue. 
D)  an asset. 
A)  a liability. 
B)  an expense. 
C)  revenue. 
D)  an asset.

Question 11

The continuity assumption acknowledges that estimates of net income are still useful.

Accepted Answer

A) True 
 B)False

Question 12

Match each definition with the correct term below.
-Revenues

Accepted Answer

A) Used to determine that all temporary accounts have zero balances. 
B) The postponement of the recognition of an expense already paid. 
C) Accounts that begin each accounting period with a zero balance. 
D) Increases in stockholders' equity resulting from selling goods. 
E) Revenue that is received in advance of goods delivery or service performance.
F)Accounts that carry their end-of-period balances into the next accounting period.
G)The recognition of a revenue or an expense that has arisen but not been recorded during the accounting period.
H)Decreases in stockholders' equity resulting from the cost of selling goods.
I)Used after making adjusting journal entries to ensure that debits equal credits.
J)Revenues that a company has earned by performing a service or delivering goods but for which no entry 
A) Used to determine that all temporary accounts have zero balances. 
B) The postponement of the recognition of an expense already paid. 
C) Accounts that begin each accounting period with a zero balance. 
D) Increases in stockholders' equity resulting from selling goods. 
E) Revenue that is received in advance of goods delivery or service performance.
F)Accounts that carry their end-of-period balances into the next accounting period.
G)The recognition of a revenue or an expense that has arisen but not been recorded during the accounting period.
H)Decreases in stockholders' equity resulting from the cost of selling goods.
I)Used after making adjusting journal entries to ensure that debits equal credits.
J)Revenues that a company has earned by performing a service or delivering goods but for which no entry

Question 13

Which of the following accounts could decrease as a result of adjusting entries?

Accepted Answer

A)  Prepaid Insurance 
B)  Accumulated Depreciation-Equipment 
C)  Supplies Expense 
D)  Revenue 
A)  Prepaid Insurance 
B)  Accumulated Depreciation-Equipment 
C)  Supplies Expense 
D)  Revenue

Question 14

When expenses exceed revenues,

Accepted Answer

A)  a net income will result. 
B)  a net loss occurs. 
C)  stockholders' equity increases. 
D)  a liability is created. 
A)  a net income will result. 
B)  a net loss occurs. 
C)  stockholders' equity increases. 
D)  a liability is created.

Question 15

Below are the adjusted accounts of Slate Realtors,Inc.,for the month ended Oct.31,2013,listed in alphabetical order:
   In the journal provided,prepare Slate's closing entries (omit explanations).

Accepted Answer

The answer of Below are the adjusted accounts of Slate...

Question 16

Which of the following situations is an example of an accrual?

Accepted Answer

A)  Recording supplies consumed 
B)  Recording unrecorded,earned revenues 
C)  Recording depreciation 
D)  Recording the portion of prepaid rent that has expired 
A)  Recording supplies consumed 
B)  Recording unrecorded,earned revenues 
C)  Recording depreciation 
D)  Recording the portion of prepaid rent that has expired

Question 17

If a company is not expected to survive,it is considered a going concern.

Accepted Answer

A) True 
 B)False

Question 18

The entry to record depreciation on machinery is

Accepted Answer

A)  Accumulated Depreciation-Machinery - Debit; Cash - Credit 
B)  Depreciation Expense-Machinery - Debit; Machinery - Credit 
C)  Depreciation Expense-Machinery - Debit; Cash - Credit 
D)  Depreciation Expense-Machinery - Debit; Accumulated Depreciation-Machinery - Credit 
A)  Accumulated Depreciation-Machinery - Debit; Cash - Credit 
B)  Depreciation Expense-Machinery - Debit; Machinery - Credit 
C)  Depreciation Expense-Machinery - Debit; Cash - Credit 
D)  Depreciation Expense-Machinery - Debit; Accumulated Depreciation-Machinery - Credit

Question 19

Use this information to answer the following question. The trial balance for Barnstable Corporation appears as follows:
  If on December 31,2013,the insurance still unexpired amounted to $40,the adjusting entry would contain a

Accepted Answer

A)  debit to Prepaid Insurance for $60. 
B)  credit to Prepaid Insurance for $60. 
C)  debit to Insurance Expense for $40. 
D)  credit to Prepaid Insurance for $40. 
A)  debit to Prepaid Insurance for $60. 
B)  credit to Prepaid Insurance for $60. 
C)  debit to Insurance Expense for $40. 
D)  credit to Prepaid Insurance for $40.

Question 20

Recording incurred but unpaid expenses is an example of an accrual.

Accepted Answer

A) True 
 B)False

A depreciable asset's original cost can typically be obtained by referring to the balance sheet.

The dollar amount of Cash on the trial balance and on the adjusted trial balance should be identical.

What broad purposes are accomplished by closing entries?

When an asset's depreciation is recorded,it's carrying value increases.

Match each definition with the correct term below. -Unearned revenues

The periodicity assumption recognizes that

Which of the following pairs of accounts could not be included in the same adjusting entry?

Failure to record depreciation at year end will result in an

The cost of doing business is also known as

The continuity assumption acknowledges that estimates of net income are still useful.

Match each definition with the correct term below. -Revenues

Which of the following accounts could decrease as a result of adjusting entries?

When expenses exceed revenues,

Below are the adjusted accounts of Slate Realtors,Inc.,for the month ended Oct.31,2013,listed in alphabetical order: In the journal provided,prepare Slate's closing entries (omit explanations).

Which of the following situations is an example of an accrual?

If a company is not expected to survive,it is considered a going concern.

The entry to record depreciation on machinery is

Use this information to answer the following question. The trial balance for Barnstable Corporation appears as follows: If on December 31,2013,the insurance still unexpired amounted to $40,the adjusting entry would contain a

Recording incurred but unpaid expenses is an example of an accrual.

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Investments

Filters

Exam 3: Measuring Business Income

A depreciable asset's original cost can typically be obtained by referring to the balance sheet.

The dollar amount of Cash on the trial balance and on the adjusted trial balance should be identical.

What broad purposes are accomplished by closing entries?

When an asset's depreciation is recorded,it's carrying value increases.

Match each definition with the correct term below. -Unearned revenues

The periodicity assumption recognizes that

Which of the following pairs of accounts could not be included in the same adjusting entry?

Failure to record depreciation at year end will result in an

The cost of doing business is also known as

The continuity assumption acknowledges that estimates of net income are still useful.

Match each definition with the correct term below. -Revenues

Which of the following accounts could decrease as a result of adjusting entries?

When expenses exceed revenues,

Below are the adjusted accounts of Slate Realtors,Inc.,for the month ended Oct.31,2013,listed in alphabetical order: In the journal provided,prepare Slate's closing entries (omit explanations).

Which of the following situations is an example of an accrual?

If a company is not expected to survive,it is considered a going concern.

The entry to record depreciation on machinery is

Use this information to answer the following question. The trial balance for Barnstable Corporation appears as follows: If on December 31,2013,the insurance still unexpired amounted to $40,the adjusting entry would contain a

Recording incurred but unpaid expenses is an example of an accrual.

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Investments

Filters