Question 1

The net income for an accounting period appears on the worksheet in the

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

Accrued income is income that has been

Accepted Answer

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

Question 4

Rose Bush Nursery purchased a delivery truck for $27,000. The truck is expected to have a useful life of 4 years and a residual value of $1,080. If the truck was purchased on June 1, 2013, what is the amount of depreciation expense for the truck for the year ended December 31, 2013?

Accepted Answer

A)  $3,780 
B)  $1,080 
C)  $6,480 
D)  $3,240 
A)  $3,780 
B)  $1,080 
C)  $6,480 
D)  $3,240

Question 5

Allowance for Doubtful Accounts is reported in the

Accepted Answer

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

Question 6

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 7

Robin Banks, Inc. owns an armored truck which was purchased for $80,000. The Accumulated Depreci?ation on the truck is $55,000. The book value of the armored truck is

Accepted Answer

A)  $25,000 
B)  $80,000 
C)  $55,000 
D)  $135,000 
A)  $25,000 
B)  $80,000 
C)  $55,000 
D)  $135,000

Question 8

To determine the amount of yearly depreciation, the ____________________ is divided by the number of years in the asset's useful life.

Accepted Answer

The answer of To determine the amount of yearly depreciation,...

Question 9

On October 1, 2013, a firm accepted a 4-month, 8% note for $12,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2013, is

Accepted Answer

A)  $960.00 
B)  $80.00 
C)  $240.00 
D)  No accrual is necessary 
A)  $960.00 
B)  $80.00 
C)  $240.00 
D)  No accrual is necessary

Question 10

After both of the entries for the inventory adjustment have been posted the debit in the Income Summary account represents:

Accepted Answer

A)  Net Income 
B)  Ending Inventory 
C)  Beginning Inventory 
D)  Cost of Goods Sold 
A)  Net Income 
B)  Ending Inventory 
C)  Beginning Inventory 
D)  Cost of Goods Sold

Question 11

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 $3,900.

Accepted Answer

Debit Wages Expense,

Question 12

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. During December, the firm received $12,000 in fees in advance and properly recorded the amount as Unearned Fees. An analysis shows that $4,000 applies to services provided in December.

Accepted Answer

Debit Unearned Fees,

Question 13

A debit to Interest Receivable and a credit to Interest Income are needed to record interest that has been earned but not yet received.

Accepted Answer

A) True 
 B)False

Question 14

If an account has a debit balance in the Trial Balance section and a debit entry in the Adjustments section, _______________ the two amounts.

Accepted Answer

The answer of If an account has a debit balance...

Question 15

Which of the following statements is not correct?

Accepted Answer

A)  Uncollectible Accounts Expense is a contra asset account. 
B)  The cost less the salvage value equals the depreciable base of a long-term asset. 
C)  Each adjustment for an accrued expense includes a credit to a liability account. 
D)  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. 
A)  Uncollectible Accounts Expense is a contra asset account. 
B)  The cost less the salvage value equals the depreciable base of a long-term asset. 
C)  Each adjustment for an accrued expense includes a credit to a liability account. 
D)  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.

Question 16

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. During December, the firm received $6,000 in fees in advance and properly recorded the amount as Unearned Fees. An analysis shows that $2,000 applies to services provided in December.

Accepted Answer

Debit Unearned Fees,

Question 17

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. The beginning inventory for a merchandising business was $73,000, and the ending inventory is $66,000.

Accepted Answer

First entry: Debit Income Summ

Question 18

The adjusting entry to record accrued interest on a note payable requires a debit to

Accepted Answer

A)  Interest Income and a credit to Notes Payable. 
B)  Interest Payable and a credit to Interest Expense. 
C)  Interest Expense and a credit to Cash. 
D)  Interest Expense and a credit to Interest Payable. 
A)  Interest Income and a credit to Notes Payable. 
B)  Interest Payable and a credit to Interest Expense. 
C)  Interest Expense and a credit to Cash. 
D)  Interest Expense and a credit to Interest Payable.

Question 19

Which of the following statements is correct?

Accepted Answer

A)  Income that has been earned but not yet received is called accrued income. 
B)  Unearned Subscription Income is a liability account. 
C)  Under the accrual basis of accounting, revenue is recognized and recorded in the period when it is earned regardless of when cash related to the transaction is received. 
D)  All of the above statements are correct. 
A)  Income that has been earned but not yet received is called accrued income. 
B)  Unearned Subscription Income is a liability account. 
C)  Under the accrual basis of accounting, revenue is recognized and recorded in the period when it is earned regardless of when cash related to the transaction is received. 
D)  All of the above statements are correct.

Question 20

On November 1, 2013, a firm accepted a 4-month, 10 percent note for $900 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended December 31, 2013, is

Accepted Answer

A)  $90. 
B)  $75. 
C)  $30. 
D)  $15. 
A)  $90. 
B)  $75. 
C)  $30. 
D)  $15.

The net income for an accounting period appears on the worksheet in the

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

Accrued income is income that has been

Rose Bush Nursery purchased a delivery truck for $27,000. The truck is expected to have a useful life of 4 years and a residual value of $1,080. If the truck was purchased on June 1, 2013, what is the amount of depreciation expense for the truck for the year ended December 31, 2013?

Allowance for Doubtful Accounts is reported in the

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

Robin Banks, Inc. owns an armored truck which was purchased for $80,000. The Accumulated Depreci?ation on the truck is $55,000. The book value of the armored truck is

To determine the amount of yearly depreciation, the ____________________ is divided by the number of years in the asset's useful life.

On October 1, 2013, a firm accepted a 4-month, 8% note for $12,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2013, is

After both of the entries for the inventory adjustment have been posted the debit in the Income Summary account represents:

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 $3,900.

A debit to Interest Receivable and a credit to Interest Income are needed to record interest that has been earned but not yet received.

If an account has a debit balance in the Trial Balance section and a debit entry in the Adjustments section, _______________ the two amounts.

Which of the following statements is not correct?

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. The beginning inventory for a merchandising business was $73,000, and the ending inventory is $66,000.

The adjusting entry to record accrued interest on a note payable requires a debit to

Which of the following statements is correct?

On November 1, 2013, a firm accepted a 4-month, 10 percent note for $900 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended December 31, 2013, is

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

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Exam 12: Accruals, Deferrals, and the Worksheet

The net income for an accounting period appears on the worksheet in the

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

Accrued income is income that has been

Rose Bush Nursery purchased a delivery truck for $27,000. The truck is expected to have a useful life of 4 years and a residual value of $1,080. If the truck was purchased on June 1, 2013, what is the amount of depreciation expense for the truck for the year ended December 31, 2013?

Allowance for Doubtful Accounts is reported in the

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

Robin Banks, Inc. owns an armored truck which was purchased for $80,000. The Accumulated Depreci?ation on the truck is $55,000. The book value of the armored truck is

To determine the amount of yearly depreciation, the ____________________ is divided by the number of years in the asset's useful life.

On October 1, 2013, a firm accepted a 4-month, 8% note for $12,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2013, is

After both of the entries for the inventory adjustment have been posted the debit in the Income Summary account represents:

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 $3,900.

A debit to Interest Receivable and a credit to Interest Income are needed to record interest that has been earned but not yet received.

If an account has a debit balance in the Trial Balance section and a debit entry in the Adjustments section, _______________ the two amounts.

Which of the following statements is not correct?

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. The beginning inventory for a merchandising business was $73,000, and the ending inventory is $66,000.

The adjusting entry to record accrued interest on a note payable requires a debit to

Which of the following statements is correct?

On November 1, 2013, a firm accepted a 4-month, 10 percent note for $900 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended December 31, 2013, is

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