Question 1

Which of the following accounts is credited for a direct deduction from Equipment in the asset section of a balance sheet?

Accepted Answer

A)  Sunk Depreciation, Equipment 
B)  Opportunity Cost, Equipment 
C)  Accrued Cost, Equipment 
D)  Accumulated Depreciation, Equipment 
A)  Sunk Depreciation, Equipment 
B)  Opportunity Cost, Equipment 
C)  Accrued Cost, Equipment 
D)  Accumulated Depreciation, Equipment D

Question 2

A net loss occurs when there are more expenses than revenue.

Accepted Answer

A) True 
 B)False  True

Question 3

Sweet Stuff Co. purchases equipment with a cost of $36,400 and a trade-in value of $4,000. Sweet Stuff Co. estimates that the equipment will have a useful life of 9 years. Assuming Sweet Stuff Co. records depreciation for one month using the straight-line method, the adjustment would be recorded in the work sheet as a:

Accepted Answer

A)  credit to depreciation expense, $3,600. 
B)  debit to depreciation expense, $300. 
C)  credit to equipment, $300. 
D)  credit to accumulated depreciation, $3,600. 
A)  credit to depreciation expense, $3,600. 
B)  debit to depreciation expense, $300. 
C)  credit to equipment, $300. 
D)  credit to accumulated depreciation, $3,600. B

Question 4

The entry to record expired insurance is omitted. This error causes

Accepted Answer

A)  assets to be overstated. 
B)  expenses to be overstated. 
C)  liabilities to be overstated. 
D)  liabilities to be understated. 
E)  an increase in liabilities on the balance sheet. 
A)  assets to be overstated. 
B)  expenses to be overstated. 
C)  liabilities to be overstated. 
D)  liabilities to be understated. 
E)  an increase in liabilities on the balance sheet.

Question 5

Match the terms below with the correct definitions.
-Working paper that is used to record adjustments and gather information to prepare the financial statements

Accepted Answer

A) Fiscal year 
B) Trade-in value 
C) Accrued wages 
D) Work sheet 
E) Contra account
F)Accounting cycle
G)Mixed accounts
H)Adjusting
I)Depreciation 
A) Fiscal year 
B) Trade-in value 
C) Accrued wages 
D) Work sheet 
E) Contra account
F)Accounting cycle
G)Mixed accounts
H)Adjusting
I)Depreciation

Question 6

Explain what book value is and provide an example of how it is calculated.

Accepted Answer

Book value is the carrying val

Question 7

Which of the following statements is true?

Accepted Answer

A)  Adjusting entries contain only balance sheet accounts. 
B)  Adjusting entries contains only income statement accounts. 
C)  Adjusting entries contains an income statement account and a balance sheet account. 
D)  none of the answers listed. 
A)  Adjusting entries contain only balance sheet accounts. 
B)  Adjusting entries contains only income statement accounts. 
C)  Adjusting entries contains an income statement account and a balance sheet account. 
D)  none of the answers listed.

Question 8

Which of the following entries contains both a balance sheet account and an income statement account?

Accepted Answer

A)  An accumulated entry 
B)  A matching entry 
C)  An adjusting entry 
D)  A contra entry 
E)  A mixed entry 
A)  An accumulated entry 
B)  A matching entry 
C)  An adjusting entry 
D)  A contra entry 
E)  A mixed entry

Question 9

In recording the adjusting entry for accrued wages, all the accounts involved are decreased.

Accepted Answer

A) True 
 B)False

Question 10

Match between columns
                        Premises:  Amount that one would expect to be the value of an asset when its estimated life is over
 Steps in the accounting process, completed during the fiscal year
 Allocation of the cost of a plant asset over its estimated life
 Twelve consecutive months used by a business as its annual accounting period
 Amount of unpaid wages owed to employees for wages earned between the last pay period end and the end of the fiscal period
 Account that is contrary to or a deduction from another account
 Working paper that is used to record adjustments and gather information to prepare the financial statements
 Accounts that are partly income statement and partly balance sheet accounts
 Process of recording internal transactions at the end of the fiscal period for updating some accounts

Accepted Answer

The Answer of Fiscal year and Trade-in value and Accrued is...

Question 11

Accountants refer to the wages earned by employees but not paid to them at the end of an accounting period as:

Accepted Answer

A)  accrued wages. 
B)  deposited wages. 
C)  carrying wages. 
D)  booked wages. 
E)  deductible wages. 
A)  accrued wages. 
B)  deposited wages. 
C)  carrying wages. 
D)  booked wages. 
E)  deductible wages.

Question 12

Match the terms below with the correct definitions.
-Twelve consecutive months used by a business as its annual accounting period

Accepted Answer

A) Fiscal year 
B) Trade-in value 
C) Accrued wages 
D) Work sheet 
E) Contra account
F)Accounting cycle
G)Mixed accounts
H)Adjusting
I)Depreciation 
A) Fiscal year 
B) Trade-in value 
C) Accrued wages 
D) Work sheet 
E) Contra account
F)Accounting cycle
G)Mixed accounts
H)Adjusting
I)Depreciation

Question 13

Which of the following refers to any period of time covering a complete accounting cycle?

Accepted Answer

A)  A time cycle 
B)  A fiscal period 
C)  A journal period 
D)  A matching cycle 
A)  A time cycle 
B)  A fiscal period 
C)  A journal period 
D)  A matching cycle

Question 14

Failure to record the adjusting entry for depreciation will overstate assets on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 15

If an accountant fails to make an adjusting entry at the end of a fiscal period to record expired insurance, the omission will cause

Accepted Answer

A)  total assets to be understated. 
B)  total expenses to be understated. 
C)  total revenue to be understated. 
D)  liabilities to be overstated. 
E)  liabilities to be understated. 
A)  total assets to be understated. 
B)  total expenses to be understated. 
C)  total revenue to be understated. 
D)  liabilities to be overstated. 
E)  liabilities to be understated.

Question 16

Failure to record the adjusting entry for depreciation results in assets and owner's equity being overstated on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 17

If the adjustment for accrued wages is omitted, liabilities and expenses will be overstated.

Accepted Answer

A) True 
 B)False

Question 18

The adjusted trial balance debit column of the work sheet would include which of the following account(s)?

Accepted Answer

A)  assets, liabilities, expenses 
B)  assets, drawing, expenses 
C)  assets, revenue, accumulated depreciation 
D)  accumulated depreciation, liabilities, capital 
A)  assets, liabilities, expenses 
B)  assets, drawing, expenses 
C)  assets, revenue, accumulated depreciation 
D)  accumulated depreciation, liabilities, capital

Question 19

Sunny Day Company has $740 of supplies reported on its unadjusted trial balance as of July 31. During the month of July Sunny Day Company used $325 worth of supplies. What is the entry to adjust supplies?

Accepted Answer

A)  
$\begin{array} { l r } 
\text { Supplies Expense } & \$ 325 \
\text { Cash } & \$ 325
\end{array}$ 
B)  
$\begin{array} { l } 
\text { Supplies }&\$ 415 \
\text { Supplies Expense }&\$ 415
\end{array} $ 
C)  
Supplies Expense $\quad\$ 415$
Supplies $\quad \$ 415$ 
D)  
Supplies Expense $\quad\$ 325$
Supplies$\quad\$ 325$ 
A)  
$\begin{array} { l r } 
\text { Supplies Expense } & \$ 325 \
\text { Cash } & \$ 325
\end{array}$ 
B)  
$\begin{array} { l } 
\text { Supplies }&\$ 415 \
\text { Supplies Expense }&\$ 415
\end{array} $ 
C)  
Supplies Expense $\quad\$ 415$
Supplies $\quad \$ 415$ 
D)  
Supplies Expense $\quad\$ 325$
Supplies$\quad\$ 325$

Question 20

A company produced a net income of $28,000 but failed to adjust for $1,600 in depreciation of equipment and $1,400 in accrued wages. Explain how these errors have affected net income. What will be the corrected net income?

Accepted Answer

Failing to make adjustments that will in

Which of the following accounts is credited for a direct deduction from Equipment in the asset section of a balance sheet?

A net loss occurs when there are more expenses than revenue.

The entry to record expired insurance is omitted. This error causes

Match the terms below with the correct definitions. -Working paper that is used to record adjustments and gather information to prepare the financial statements

Explain what book value is and provide an example of how it is calculated.

Which of the following statements is true?

Which of the following entries contains both a balance sheet account and an income statement account?

In recording the adjusting entry for accrued wages, all the accounts involved are decreased.

Accountants refer to the wages earned by employees but not paid to them at the end of an accounting period as:

Match the terms below with the correct definitions. -Twelve consecutive months used by a business as its annual accounting period

Which of the following refers to any period of time covering a complete accounting cycle?

Failure to record the adjusting entry for depreciation will overstate assets on the balance sheet.

If an accountant fails to make an adjusting entry at the end of a fiscal period to record expired insurance, the omission will cause

Failure to record the adjusting entry for depreciation results in assets and owner's equity being overstated on the balance sheet.

If the adjustment for accrued wages is omitted, liabilities and expenses will be overstated.

The adjusted trial balance debit column of the work sheet would include which of the following account(s)?

Sunny Day Company has $740 of supplies reported on its unadjusted trial balance as of July 31. During the month of July Sunny Day Company used $325 worth of supplies. What is the entry to adjust supplies?

A company produced a net income of $28,000 but failed to adjust for $1,600 in depreciation of equipment and $1,400 in accrued wages. Explain how these errors have affected net income. What will be the corrected net income?

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters

Exam 4: Adjusting Entries and the Work Sheet

Which of the following accounts is credited for a direct deduction from Equipment in the asset section of a balance sheet?

A net loss occurs when there are more expenses than revenue.

The entry to record expired insurance is omitted. This error causes

Match the terms below with the correct definitions. -Working paper that is used to record adjustments and gather information to prepare the financial statements

Explain what book value is and provide an example of how it is calculated.

Which of the following statements is true?

Which of the following entries contains both a balance sheet account and an income statement account?

In recording the adjusting entry for accrued wages, all the accounts involved are decreased.

Accountants refer to the wages earned by employees but not paid to them at the end of an accounting period as:

Match the terms below with the correct definitions. -Twelve consecutive months used by a business as its annual accounting period

Which of the following refers to any period of time covering a complete accounting cycle?

Failure to record the adjusting entry for depreciation will overstate assets on the balance sheet.

If an accountant fails to make an adjusting entry at the end of a fiscal period to record expired insurance, the omission will cause

Failure to record the adjusting entry for depreciation results in assets and owner's equity being overstated on the balance sheet.

If the adjustment for accrued wages is omitted, liabilities and expenses will be overstated.

The adjusted trial balance debit column of the work sheet would include which of the following account(s)?

Sunny Day Company has $740 of supplies reported on its unadjusted trial balance as of July 31. During the month of July Sunny Day Company used $325 worth of supplies. What is the entry to adjust supplies?

A company produced a net income of $28,000 but failed to adjust for $1,600 in depreciation of equipment and $1,400 in accrued wages. Explain how these errors have affected net income. What will be the corrected net income?

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Closing Entries and the Post-Closing Trial Balance

Bank Accounts, Cash Funds, and Internal Controls

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters