Question 1

On a worksheet, the adjusted balance of the revenue account Fees Income would be extended to:

Accepted Answer

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

Question 2

When the ____________________ method of depreciation is used, an equal amount of depreciation is charged to each accounting period during the asset's useful life.

Accepted Answer

The answer of When the ____________________ method of depreciation is...

Question 3

An accumulated depreciation account is often referred to as a(n) ____________________ asset account.

Accepted Answer

The answer of An accumulated depreciation account is often referred...

Question 4

The adjusting entry to account for the expiration of prepaid insurance consists of

Accepted Answer

A)  a debit to Insurance Expense and a credit to Prepaid Insurance. 
B)  a debit to Insurance Expense and a credit to Accumulated Depreciation. 
C)  a debit to Prepaid Insurance and a credit to Accumulated Depreciation. 
D)  a debit to Accumulated Depreciation and a credit to Prepaid Insurance. 
A)  a debit to Insurance Expense and a credit to Prepaid Insurance. 
B)  a debit to Insurance Expense and a credit to Accumulated Depreciation. 
C)  a debit to Prepaid Insurance and a credit to Accumulated Depreciation. 
D)  a debit to Accumulated Depreciation and a credit to Prepaid Insurance.

Question 5

Prepaid expenses, such as prepaid rent and prepaid insurance, represent assets for a business until they are used.

Accepted Answer

A) True 
 B)False

Question 6

The partial worksheet for the Lorado Insurance Agency for the month ended October 31, 2013, is shown below. Using this data, prepare an income statement, a statement of owner's equity, and a balance sheet. The owner made no additional investments during the month.

Accepted Answer

The answer of The partial worksheet for the Lorado Insurance...

Question 7

MacGyver Company bought equipment on January 3, 2013, for $34,000. At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. Using the straight-line method, the amount of one year's depreciation is

Accepted Answer

A)  $880 
B)  $5,520 
C)  $460 
D)  $5,667 
A)  $880 
B)  $5,520 
C)  $460 
D)  $5,667

Question 8

Equipment costing $13,500 with an estimated salvage value of $1,020 and an estimated life of 4 years was purchased on November 1, 2013. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2013?

Accepted Answer

A)  $260 
B)  $520 
C)  $3,120 
D)  $1,020 
A)  $260 
B)  $520 
C)  $3,120 
D)  $1,020

Question 9

Letters are used to label the debit and credit parts of an adjustment on the worksheet.

Accepted Answer

A) True 
 B)False

Question 10

On a worksheet, a net loss is

Accepted Answer

A)  recorded in the Income Statement Debit column. 
B)  recorded in the Balance Sheet Debit column. 
C)  recorded in the Balance Sheet Credit column. 
D)  not recorded. 
A)  recorded in the Income Statement Debit column. 
B)  recorded in the Balance Sheet Debit column. 
C)  recorded in the Balance Sheet Credit column. 
D)  not recorded.

Question 11

On a worksheet, the adjusted balance of a contra asset account would be extended to

Accepted Answer

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

Question 12

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance.

Accepted Answer

The answer of For each of the accounts listed below,...

Question 13

Read the description of following adjustments that are required at the end of the accounting period for Paulo Consulting Services. Record the necessary adjusting entries on page 2 of a general journal. Omit the descriptions.
A. Equipment purchased on January 1, 2013, for $24,000 has an estimated useful life of 5 years with no salvage value. Depreciation is computed using the straight-line method.
B. Signed a 3-month contract for $4,500 of prepaid advertising on January 1, 2013.
C. Prepaid rent for the year on January 1, 2013. Rent expired during the month of January 2013, $1,600.
D. Purchased supplies for $2,000 on January 1, 2013. Inventory of supplies was $1,200 on January 31, 2013.

Accepted Answer

The answer of Read the description of following adjustments that...

Question 14

If long-term assets are not adjusted, expenses on the income statement

Accepted Answer

A)  will be overstated. 
B)  will be understated. 
C)  will not be affected. 
D)  may be either overstated or understated. 
A)  will be overstated. 
B)  will be understated. 
C)  will not be affected. 
D)  may be either overstated or understated.

Question 15

On a worksheet, the adjusted balance of the Supplies account is extended to:

Accepted Answer

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

Question 16

A total of $3,200 in supplies was purchased during the year. At the end of the year $700 of the supplies were left. The adjusting entry needed at the end of the year is:

Accepted Answer

A)  debit Supplies $2,500; credit Supplies Expense $2,500 
B)  debit Supplies Expense $3,200; credit Supplies $3,200 
C)  debit Supplies Expense $700; credit Supplies $700 
D)  debit Supplies Expense $2,500; credit Supplies $2,500 
A)  debit Supplies $2,500; credit Supplies Expense $2,500 
B)  debit Supplies Expense $3,200; credit Supplies $3,200 
C)  debit Supplies Expense $700; credit Supplies $700 
D)  debit Supplies Expense $2,500; credit Supplies $2,500

Question 17

The adjusting entry to account for the expiration of prepaid advertising consists of

Accepted Answer

A)  a debit to Prepaid Advertising and a credit to Advertising Expense. 
B)  a debit to Advertising Expense and a credit to Accumulated Depreciation. 
C)  a debit to Prepaid Advertising and a credit to Accumulated Depreciation. 
D)  a debit to Advertising Expense and a credit to Prepaid Advertising. 
A)  a debit to Prepaid Advertising and a credit to Advertising Expense. 
B)  a debit to Advertising Expense and a credit to Accumulated Depreciation. 
C)  a debit to Prepaid Advertising and a credit to Accumulated Depreciation. 
D)  a debit to Advertising Expense and a credit to Prepaid Advertising.

Question 18

On a worksheet, the adjusted balance of Depreciation Expense is extended from the Adjusted Trial Balance Debit column to the ____________________ Debit column.

Accepted Answer

The answer of On a worksheet, the adjusted balance of...

Question 19

On a worksheet, the adjusted balance of the Accumulated Depreciation account is extended to:

Accepted Answer

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

Question 20

A consecutive, twelve-month accounting period is called a(n)

Accepted Answer

A)  accrual year 
B)  fiscal year 
C)  accounting year 
D)  adjusted year 
A)  accrual year 
B)  fiscal year 
C)  accounting year 
D)  adjusted year

On a worksheet, the adjusted balance of the revenue account Fees Income would be extended to:

When the ____________________ method of depreciation is used, an equal amount of depreciation is charged to each accounting period during the asset's useful life.

An accumulated depreciation account is often referred to as a(n) ____________________ asset account.

The adjusting entry to account for the expiration of prepaid insurance consists of

Prepaid expenses, such as prepaid rent and prepaid insurance, represent assets for a business until they are used.

The partial worksheet for the Lorado Insurance Agency for the month ended October 31, 2013, is shown below. Using this data, prepare an income statement, a statement of owner's equity, and a balance sheet. The owner made no additional investments during the month.

MacGyver Company bought equipment on January 3, 2013, for $34,000. At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. Using the straight-line method, the amount of one year's depreciation is

Equipment costing $13,500 with an estimated salvage value of $1,020 and an estimated life of 4 years was purchased on November 1, 2013. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2013?

Letters are used to label the debit and credit parts of an adjustment on the worksheet.

On a worksheet, a net loss is

On a worksheet, the adjusted balance of a contra asset account would be extended to

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance.

If long-term assets are not adjusted, expenses on the income statement

On a worksheet, the adjusted balance of the Supplies account is extended to:

A total of $3,200 in supplies was purchased during the year. At the end of the year $700 of the supplies were left. The adjusting entry needed at the end of the year is:

The adjusting entry to account for the expiration of prepaid advertising consists of

On a worksheet, the adjusted balance of Depreciation Expense is extended from the Adjusted Trial Balance Debit column to the ____________________ Debit column.

On a worksheet, the adjusted balance of the Accumulated Depreciation account is extended to:

A consecutive, twelve-month accounting period is called a(n)

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

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

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Filters

Exam 5: Adjustments and the Worksheet

On a worksheet, the adjusted balance of the revenue account Fees Income would be extended to:

When the ____________________ method of depreciation is used, an equal amount of depreciation is charged to each accounting period during the asset's useful life.

An accumulated depreciation account is often referred to as a(n) ____________________ asset account.

The adjusting entry to account for the expiration of prepaid insurance consists of

Prepaid expenses, such as prepaid rent and prepaid insurance, represent assets for a business until they are used.

The partial worksheet for the Lorado Insurance Agency for the month ended October 31, 2013, is shown below. Using this data, prepare an income statement, a statement of owner's equity, and a balance sheet. The owner made no additional investments during the month.

MacGyver Company bought equipment on January 3, 2013, for $34,000. At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. Using the straight-line method, the amount of one year's depreciation is

Equipment costing $13,500 with an estimated salvage value of $1,020 and an estimated life of 4 years was purchased on November 1, 2013. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2013?

Letters are used to label the debit and credit parts of an adjustment on the worksheet.

On a worksheet, a net loss is

On a worksheet, the adjusted balance of a contra asset account would be extended to

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance.

If long-term assets are not adjusted, expenses on the income statement

On a worksheet, the adjusted balance of the Supplies account is extended to:

A total of $3,200 in supplies was purchased during the year. At the end of the year $700 of the supplies were left. The adjusting entry needed at the end of the year is:

The adjusting entry to account for the expiration of prepaid advertising consists of

On a worksheet, the adjusted balance of Depreciation Expense is extended from the Adjusted Trial Balance Debit column to the ____________________ Debit column.

On a worksheet, the adjusted balance of the Accumulated Depreciation account is extended to:

A consecutive, twelve-month accounting period is called a(n)

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

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

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Filters