Question 1

Assuming no investments were made during the period,the balance of Capital shown on the worksheet is:

Accepted Answer

A) beginning capital. 
B) ending capital. 
C) net income. 
D) net loss. 
A) beginning capital. 
B) ending capital. 
C) net income. 
D) net loss.

Question 2

Which of the following accounts would appear on the balance sheet?

Accepted Answer

A) Accumulated Depreciation 
B) Depreciation Expense 
C) Fees Earned 
D) None of these are correct. 
A) Accumulated Depreciation 
B) Depreciation Expense 
C) Fees Earned 
D) None of these are correct.

Question 3

Which of the following would be an example of a contra-asset?

Accepted Answer

A) Depreciation Expense 
B) Residual Value 
C) Accumulated Depreciation 
D) Supplies 
A) Depreciation Expense 
B) Residual Value 
C) Accumulated Depreciation 
D) Supplies

Question 4

If Prepaid Rent for the period is not adjusted:

Accepted Answer

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

Question 5

Prepaid Rent is considered to be a(n):

Accepted Answer

A) liability. 
B) asset. 
C) contra-asset. 
D) revenue. 
A) liability. 
B) asset. 
C) contra-asset. 
D) revenue.

Question 6

The Sarbanes-Oxley Act:

Accepted Answer

A) prohibits companies from buying additional equipment. 
B) does not allow adjusting entries. 
C) states the need to have accurate financial reports. 
D) does not allow the use of a worksheet. 
A) prohibits companies from buying additional equipment. 
B) does not allow adjusting entries. 
C) states the need to have accurate financial reports. 
D) does not allow the use of a worksheet.

Question 7

Which of the following transactions would result in an accrual?

Accepted Answer

A) Salary expense has been incurred but unpaid. 
B) Rent expired for the month. 
C) Supplies used during the accounting period. 
D) Equipment depreciated over the period. 
A) Salary expense has been incurred but unpaid. 
B) Rent expired for the month. 
C) Supplies used during the accounting period. 
D) Equipment depreciated over the period.

Question 8

Historical cost is the same as:

Accepted Answer

A) residual value. 
B) original cost. 
C) accumulated depreciation. 
D) book value. 
A) residual value. 
B) original cost. 
C) accumulated depreciation. 
D) book value.

Question 9

Equipment with a cost of $150,000 has an accumulated depreciation of $100,000.What is the historical cost of the equipment?

Accepted Answer

A) $150,000 
B) $50,000 
C) $200,000 
D) $100,000 
A) $150,000 
B) $50,000 
C) $200,000 
D) $100,000

Question 10

The worksheet is a formal statement.

Accepted Answer

A) True 
 B)False

Question 11

Every amount needed for the income statement can be found on the worksheet.

Accepted Answer

A) True 
 B)False

Question 12

Adjusting entries affect:

Accepted Answer

A) the balance sheet. 
B) the income statement. 
C) Neither of these answers is correct. 
D) Both A and B are correct. 
A) the balance sheet. 
B) the income statement. 
C) Neither of these answers is correct. 
D) Both A and B are correct.

Question 13

Alcatraz Boat Tours showed store supplies available during the year,$550.If at the end of the month supplies used were $200,the adjusting entry would include a:

Accepted Answer

A) debit to Supplies Expense for $200. 
B) debit to Supplies Expense for $350. 
C) credit to Supplies Expense for $200. 
D) credit to Supplies Expense for $350. 
A) debit to Supplies Expense for $200. 
B) debit to Supplies Expense for $350. 
C) credit to Supplies Expense for $200. 
D) credit to Supplies Expense for $350.

Question 14

Evans Golf Academy estimated depreciation on its building at $300.The adjusting entry for depreciation of the building would include:

Accepted Answer

A) a debit to Accumulated Depreciation for $300. 
B) a debit to Depreciation Expense for $300. 
C) a credit to Building for $300. 
D) a credit to Depreciation Expense for $300. 
A) a debit to Accumulated Depreciation for $300. 
B) a debit to Depreciation Expense for $300. 
C) a credit to Building for $300. 
D) a credit to Depreciation Expense for $300.

Question 15

If the 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 16

Given the income statement columns and the balance sheet columns of the worksheet,prepare an income statement for the month of October 31,20XX,for the company.

Accepted Answer

The answer of Given the income statement columns and the...

Question 17

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 18

Equipment with a cost of $200,000 has an accumulated depreciation of $100,000.What is the book value of the equipment?

Accepted Answer

A) $150,000 
B) $50,000 
C) $200,000 
D) $100,000 
A) $150,000 
B) $50,000 
C) $200,000 
D) $100,000

Question 19

Debits must equal credits on the Statement of Owner's equity.

Accepted Answer

A) True 
 B)False

Question 20

To record accrued salaries,you would:

Accepted Answer

A) debit Cash and credit Salaries Payable. 
B) debit Salaries Payable and credit Salaries Expense. 
C) debit Salaries Expense and credit Salaries Payable. 
D) None of these answers are correct. 
A) debit Cash and credit Salaries Payable. 
B) debit Salaries Payable and credit Salaries Expense. 
C) debit Salaries Expense and credit Salaries Payable. 
D) None of these answers are correct.

Exam 4: The Accounting Cycle Continued

Assuming no investments were made during the period,the balance of Capital shown on the worksheet is:

Which of the following accounts would appear on the balance sheet?

Which of the following would be an example of a contra-asset?

If Prepaid Rent for the period is not adjusted:

Prepaid Rent is considered to be a(n):

The Sarbanes-Oxley Act:

Which of the following transactions would result in an accrual?

Historical cost is the same as:

Equipment with a cost of $150,000 has an accumulated depreciation of $100,000.What is the historical cost of the equipment?

The worksheet is a formal statement.

Every amount needed for the income statement can be found on the worksheet.

Adjusting entries affect:

Alcatraz Boat Tours showed store supplies available during the year,$550.If at the end of the month supplies used were $200,the adjusting entry would include a:

Evans Golf Academy estimated depreciation on its building at $300.The adjusting entry for depreciation of the building would include:

If the Supplies account is not adjusted:

Given the income statement columns and the balance sheet columns of the worksheet,prepare an income statement for the month of October 31,20XX,for the company.

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.

Equipment with a cost of $200,000 has an accumulated depreciation of $100,000.What is the book value of the equipment?

Debits must equal credits on the Statement of Owner's equity.

To record accrued salaries,you would:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

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: The Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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