Question 1

Purchases of merchandise are

Accepted Answer

A)  debited to Merchandise Inventory. 
B)  credited to Merchandise Inventory. 
C)  debited to Purchases. 
D)  credited to Sales. 
A)  debited to Merchandise Inventory. 
B)  credited to Merchandise Inventory. 
C)  debited to Purchases. 
D)  credited to Sales.

Question 2

Prepaid Advertising has a debit balance in the Trial Balance section of the worksheet of $1,500 and a credit entry of $500 in the adjustments section of the worksheet, the balance of Prepaid Advertising in the Adjusted Trial Balance section of the worksheet is a

Accepted Answer

A)  $1,000 credit 
B)  $500 debit 
C)  $1,000 debit 
D)  $1,500 debit 
A)  $1,000 credit 
B)  $500 debit 
C)  $1,000 debit 
D)  $1,500 debit

Question 3

Income that is received before it is earned is called unearned, or deferred, income.

Accepted Answer

A) True 
 B)False

Question 4

On April 1, 2013, a firm accepted a 3-month, 10 percent note for $1,800 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended May 31, 2013, is

Accepted Answer

A)  $30. 
B)  $60. 
C)  $150. 
D)  $180. 
A)  $30. 
B)  $60. 
C)  $150. 
D)  $180.

Question 5

If an account has a debit balance of $700 in the Trial Balance section of a worksheet and there is a debit entry of $200 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is a

Accepted Answer

A)  $900 debit. 
B)  $500 debit. 
C)  $500 credit. 
D)  $900 credit. 
A)  $900 debit. 
B)  $500 debit. 
C)  $500 credit. 
D)  $900 credit.

Question 6

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 $980,000. Past experience shows that 1.2 percent of the firm's net credit sales result in uncollectible accounts.

Accepted Answer

Debit Uncollectible

Question 7

On January 2, 2014, a firm purchased equipment for $8,500. Depreciation expense for the year ending December 31, 2014, given the straight-line method, a 5-year useful life, and a salvage value of $1,500, is

Accepted Answer

A)  $1,500. 
B)  $1,700. 
C)  $1,200. 
D)  $1,400. 
A)  $1,500. 
B)  $1,700. 
C)  $1,200. 
D)  $1,400.

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, 2013, the firm owed wages totaling $4,300.

Accepted Answer

Debit Wages Expense,

Question 9

Accrued expenses are

Accepted Answer

A)  paid for in one period but not fully used until a later period. 
B)  used in one period but not paid for until a later period. 
C)  paid for, recorded, and used in one period. 
D)  budgeted but not paid for or used during the period. 
A)  paid for in one period but not fully used until a later period. 
B)  used in one period but not paid for until a later period. 
C)  paid for, recorded, and used in one period. 
D)  budgeted but not paid for or used during the period.

Question 10

The balance of the Merchandise Inventory account shown in the Adjusted Trial balance section of the worksheet is extended to the Balance Sheet Debit column of the worksheet.

Accepted Answer

A) True 
 B)False

Question 11

Merchandise inventory is adjusted in two steps because both the beginning and ending inventory figures are needed to prepare the income statement.

Accepted Answer

A) True 
 B)False

Question 12

The procedure that most nearly attains the objective of matching revenues and expenses to specific accounting periods is called the ____________________ basis of accounting.

Accepted Answer

The answer of The procedure that most nearly attains the...

Question 13

If an account has a credit balance of $700 in the Trial Balance section of a worksheet and there is a credit entry of $200 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is

Accepted Answer

A)  $900 debit. 
B)  $500 debit. 
C)  $500 credit. 
D)  $900 credit. 
A)  $900 debit. 
B)  $500 debit. 
C)  $500 credit. 
D)  $900 credit.

Question 14

The entry to record the ending merchandise inventory in the books includes a ____________________ to the Merchandise Inventory account.

Accepted Answer

The answer of The entry to record the ending merchandise...

Question 15

With the accrual basis of accounting, it is appropriate to recognize revenue from a credit sale

Accepted Answer

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

Question 16

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 $490,000. Past experience shows that 1.2 percent of the firm's net credit sales result in uncollectible accounts.

Accepted Answer

Debit Uncollectible

Question 17

Which of the following statements is correct?

Accepted Answer

A)  On the worksheet, the amount of the ending merchandise inventory is shown in the Income Statement Credit column in the account Income Summary and the Balance Sheet Debit column in the account Merchandise Inventory. 
B)  On the worksheet, the totals of the Income Statement columns should equal the totals of the Balance Sheet columns. 
C)  On the worksheet, if debits exceed credits in the Adjusted Trial Balance section, the difference represents a net loss. 
D)  All of the above statements are correct. 
A)  On the worksheet, the amount of the ending merchandise inventory is shown in the Income Statement Credit column in the account Income Summary and the Balance Sheet Debit column in the account Merchandise Inventory. 
B)  On the worksheet, the totals of the Income Statement columns should equal the totals of the Balance Sheet columns. 
C)  On the worksheet, if debits exceed credits in the Adjusted Trial Balance section, the difference represents a net loss. 
D)  All of the above statements are correct.

Question 18

Hugh Morris Company pays weekly wages of $10,000 every Friday for a five day week ending on that day. If the last day of the year is on Wednesday, the adjusting entry to record the accrued wages is:

Accepted Answer

A)  debit Wages Expense $6,000; credit Cash $6,000 
B)  debit Wages Expense $4,000; credit Cash $4,000 
C)  debit Wages Expense $6,000; credit Wages Payable $6,000 
D)  debit Wages Expense $6,000; credit Drawing $6,000 
A)  debit Wages Expense $6,000; credit Cash $6,000 
B)  debit Wages Expense $4,000; credit Cash $4,000 
C)  debit Wages Expense $6,000; credit Wages Payable $6,000 
D)  debit Wages Expense $6,000; credit Drawing $6,000

Question 19

Abe & Anna Split Ice Cream Parlour paid $1,800 cash for a 6-month advertising contract on September 30, 2013. The amount of advertising expense reported on the Income Statement for the year ending December 31, 2013, for this advertising contract is

Accepted Answer

A)  $900 
B)  $300 
C)  $1,800 
D)  $1,200 
A)  $900 
B)  $300 
C)  $1,800 
D)  $1,200

Question 20

Expense items that relate to the current period but have not yet been paid for or recorded are called ____________________ expenses.

Accepted Answer

The answer of Expense items that relate to the current...

Purchases of merchandise are

Prepaid Advertising has a debit balance in the Trial Balance section of the worksheet of $1,500 and a credit entry of $500 in the adjustments section of the worksheet, the balance of Prepaid Advertising in the Adjusted Trial Balance section of the worksheet is a

Income that is received before it is earned is called unearned, or deferred, income.

On April 1, 2013, a firm accepted a 3-month, 10 percent note for $1,800 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended May 31, 2013, is

If an account has a debit balance of $700 in the Trial Balance section of a worksheet and there is a debit entry of $200 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is a

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 $980,000. Past experience shows that 1.2 percent of the firm's net credit sales result in uncollectible accounts.

On January 2, 2014, a firm purchased equipment for $8,500. Depreciation expense for the year ending December 31, 2014, given the straight-line method, a 5-year useful life, and a salvage value of $1,500, is

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. On December 31, 2013, the firm owed wages totaling $4,300.

Accrued expenses are

The balance of the Merchandise Inventory account shown in the Adjusted Trial balance section of the worksheet is extended to the Balance Sheet Debit column of the worksheet.

Merchandise inventory is adjusted in two steps because both the beginning and ending inventory figures are needed to prepare the income statement.

The procedure that most nearly attains the objective of matching revenues and expenses to specific accounting periods is called the ____________________ basis of accounting.

If an account has a credit balance of $700 in the Trial Balance section of a worksheet and there is a credit entry of $200 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is

The entry to record the ending merchandise inventory in the books includes a ____________________ to the Merchandise Inventory account.

With the accrual basis of accounting, it is appropriate to recognize revenue from a credit sale

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 $490,000. Past experience shows that 1.2 percent of the firm's net credit sales result in uncollectible accounts.

Which of the following statements is correct?

Hugh Morris Company pays weekly wages of $10,000 every Friday for a five day week ending on that day. If the last day of the year is on Wednesday, the adjusting entry to record the accrued wages is:

Abe & Anna Split Ice Cream Parlour paid $1,800 cash for a 6-month advertising contract on September 30, 2013. The amount of advertising expense reported on the Income Statement for the year ending December 31, 2013, for this advertising contract is

Expense items that relate to the current period but have not yet been paid for or recorded are called ____________________ expenses.

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 the 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

Filters

Exam 12: Accruals, Deferrals, and the Worksheet

Purchases of merchandise are

Prepaid Advertising has a debit balance in the Trial Balance section of the worksheet of $1,500 and a credit entry of $500 in the adjustments section of the worksheet, the balance of Prepaid Advertising in the Adjusted Trial Balance section of the worksheet is a

Income that is received before it is earned is called unearned, or deferred, income.

On April 1, 2013, a firm accepted a 3-month, 10 percent note for $1,800 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended May 31, 2013, is

If an account has a debit balance of $700 in the Trial Balance section of a worksheet and there is a debit entry of $200 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is a

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 $980,000. Past experience shows that 1.2 percent of the firm's net credit sales result in uncollectible accounts.

On January 2, 2014, a firm purchased equipment for $8,500. Depreciation expense for the year ending December 31, 2014, given the straight-line method, a 5-year useful life, and a salvage value of $1,500, is

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. On December 31, 2013, the firm owed wages totaling $4,300.

Accrued expenses are

The balance of the Merchandise Inventory account shown in the Adjusted Trial balance section of the worksheet is extended to the Balance Sheet Debit column of the worksheet.

Merchandise inventory is adjusted in two steps because both the beginning and ending inventory figures are needed to prepare the income statement.

The procedure that most nearly attains the objective of matching revenues and expenses to specific accounting periods is called the ____________________ basis of accounting.

If an account has a credit balance of $700 in the Trial Balance section of a worksheet and there is a credit entry of $200 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is

The entry to record the ending merchandise inventory in the books includes a ____________________ to the Merchandise Inventory account.

With the accrual basis of accounting, it is appropriate to recognize revenue from a credit sale

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 $490,000. Past experience shows that 1.2 percent of the firm's net credit sales result in uncollectible accounts.

Which of the following statements is correct?

Hugh Morris Company pays weekly wages of $10,000 every Friday for a five day week ending on that day. If the last day of the year is on Wednesday, the adjusting entry to record the accrued wages is:

Abe & Anna Split Ice Cream Parlour paid $1,800 cash for a 6-month advertising contract on September 30, 2013. The amount of advertising expense reported on the Income Statement for the year ending December 31, 2013, for this advertising contract is

Expense items that relate to the current period but have not yet been paid for or recorded are called ____________________ expenses.

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 the 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

Filters