Question 1

Why are adjusting entries necessary to portray a more accurate picture of a company's financial position?

Accepted Answer

Adjusting entries represent the recordin

Question 2

The ending balance in the supplies asset accounts is the amount the company has used during the reporting period.

Accepted Answer

A) True 
 B)False

Question 3

Using the following information, prepare a statement of owner's equity for the month of October for Mathew's Clinic.
​
 $\begin{array}{lr}
\text { H. Mathew, Capital, on October } 1 & \$ 300,000 \
\text { Additional investment by H. Mathew on October } 18 & 20,000 \
\text { Net loss for the month (from income statement) } & 2,000 \
\text { Total withdrawals for the month } & 5,000
\end{array}$

Accepted Answer

The answer of Using the following information, prepare a statement...

Question 4

Assuming a normal balance, which of the following is correct concerning the balance sheet columns of the work sheet?

Accepted Answer

A)  Liabilities are shown as debits. 
B)  The drawing account is shown as a debit. 
C)  Revenues are shown as credits. 
D)  Assets are shown as credits. 
A)  Liabilities are shown as debits. 
B)  The drawing account is shown as a debit. 
C)  Revenues are shown as credits. 
D)  Assets are shown as credits.

Question 5

Match the terms below with the correct definitions.
-Accounts that are partly income statement and partly balance sheet accounts

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

Which of the following principles ensures that the expenses for one time period are matched up with the related revenues for the same time period?

Accepted Answer

A)  The depreciation principle 
B)  The matching principle 
C)  The contra principle 
D)  The mixed account principle 
A)  The depreciation principle 
B)  The matching principle 
C)  The contra principle 
D)  The mixed account principle

Question 7

If the amount of net income for the current period is less than the amount of the owner's withdrawals, there will be a(n)

Accepted Answer

A)  decrease in the Cash account. 
B)  increase in the owner's Capital account. 
C)  decrease in the owner's Capital account. 
D)  increase in the Cash account. 
E)  increase in liabilities on the balance sheet. 
A)  decrease in the Cash account. 
B)  increase in the owner's Capital account. 
C)  decrease in the owner's Capital account. 
D)  increase in the Cash account. 
E)  increase in liabilities on the balance sheet.

Question 8

Drawing is recorded in the Balance Sheet Debit column of a work sheet.

Accepted Answer

A) True 
 B)False

Question 9

If revenue and expenses were equal for an accounting period, the result would be neither a profit nor a loss.

Accepted Answer

A) True 
 B)False

Question 10

The owner's personal withdrawals for the year cause a decrease in net income.

Accepted Answer

A) True 
 B)False

Question 11

If the Income Statement Debit and Credit columns on a work sheet are not equal after adding the respective columns,

Accepted Answer

A)  an error has been made. 
B)  the company generated a net income. 
C)  the company incurred a net loss. 
D)  the liabilities must exceed the assets. 
E)  the company either generated a net income or incurred a net loss. 
A)  an error has been made. 
B)  the company generated a net income. 
C)  the company incurred a net loss. 
D)  the liabilities must exceed the assets. 
E)  the company either generated a net income or incurred a net loss.

Question 12

The adjusting entry to record the accrual of wages would involve a

Accepted Answer

A)  debit to Wages Expense. 
B)  credit to Cash. 
C)  debit to Wages Payable. 
D)  none of the answers listed 
A)  debit to Wages Expense. 
B)  credit to Cash. 
C)  debit to Wages Payable. 
D)  none of the answers listed

Question 13

The owner's Drawing account will not appear on an adjusted trial balance on the work sheet.

Accepted Answer

A) True 
 B)False

Question 14

Assuming a normal balance, which of the following is correct concerning the income statement columns of the work sheet?

Accepted Answer

A)  Assets are shown as debits. 
B)  Liabilities are shown as debits. 
C)  The drawing account is shown as a credit. 
D)  Expenses are shown as debits. 
A)  Assets are shown as debits. 
B)  Liabilities are shown as debits. 
C)  The drawing account is shown as a credit. 
D)  Expenses are shown as debits.

Question 15

Failure to record the adjusting entry for accrued wages results in the current year's net income being overstated.

Accepted Answer

A) True 
 B)False

Question 16

Coffee Co. has a $3,600 balance in Prepaid Insurance that represents the premium paid in advance for a six-month liability insurance policy. Assuming that 4 months of premium is still remaining, the adjustment would be recorded in the work sheet as a:

Accepted Answer

A)  credit to Insurance Expense, $2,400 
B)  debit to Insurance Expense, $2,400 
C)  credit to Prepaid Insurance, $1,200 
D)  debit to Prepaid Insurance, $1,200 
A)  credit to Insurance Expense, $2,400 
B)  debit to Insurance Expense, $2,400 
C)  credit to Prepaid Insurance, $1,200 
D)  debit to Prepaid Insurance, $1,200

Question 17

Match the terms below with the correct definitions.
-Steps in the accounting process, completed during the fiscal year

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 18

Dowdy Co. has equipment with a cost of $30,000 and accumulated depreciation of $22,000. What is the book value of the equipment?

Accepted Answer

A)  $8,000 
B)  $30,000 
C)  $52,000 
D)  $22,000 
A)  $8,000 
B)  $30,000 
C)  $52,000 
D)  $22,000

Question 19

Match the terms below with the correct definitions.
-Allocation of the cost of a plant asset over its estimated life

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 20

After preparing the work sheet, adjusting entries must be recorded in the __________ and then posted to the ______________.

Accepted Answer

A)  general journal; general ledger 
B)  trial balance; financial statements 
C)  general journal; financial statements 
D)  none of the answers listed 
A)  general journal; general ledger 
B)  trial balance; financial statements 
C)  general journal; financial statements 
D)  none of the answers listed

Why are adjusting entries necessary to portray a more accurate picture of a company's financial position?

The ending balance in the supplies asset accounts is the amount the company has used during the reporting period.

Assuming a normal balance, which of the following is correct concerning the balance sheet columns of the work sheet?

Match the terms below with the correct definitions. -Accounts that are partly income statement and partly balance sheet accounts

Which of the following principles ensures that the expenses for one time period are matched up with the related revenues for the same time period?

If the amount of net income for the current period is less than the amount of the owner's withdrawals, there will be a(n)

Drawing is recorded in the Balance Sheet Debit column of a work sheet.

If revenue and expenses were equal for an accounting period, the result would be neither a profit nor a loss.

The owner's personal withdrawals for the year cause a decrease in net income.

If the Income Statement Debit and Credit columns on a work sheet are not equal after adding the respective columns,

The adjusting entry to record the accrual of wages would involve a

The owner's Drawing account will not appear on an adjusted trial balance on the work sheet.

Assuming a normal balance, which of the following is correct concerning the income statement columns of the work sheet?

Failure to record the adjusting entry for accrued wages results in the current year's net income being overstated.

Coffee Co. has a $3,600 balance in Prepaid Insurance that represents the premium paid in advance for a six-month liability insurance policy. Assuming that 4 months of premium is still remaining, the adjustment would be recorded in the work sheet as a:

Match the terms below with the correct definitions. -Steps in the accounting process, completed during the fiscal year

Dowdy Co. has equipment with a cost of $30,000 and accumulated depreciation of $22,000. What is the book value of the equipment?

Match the terms below with the correct definitions. -Allocation of the cost of a plant asset over its estimated life

After preparing the work sheet, adjusting entries must be recorded in the and then posted to the ____.

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

Why are adjusting entries necessary to portray a more accurate picture of a company's financial position?

The ending balance in the supplies asset accounts is the amount the company has used during the reporting period.

Assuming a normal balance, which of the following is correct concerning the balance sheet columns of the work sheet?

Match the terms below with the correct definitions. -Accounts that are partly income statement and partly balance sheet accounts

Which of the following principles ensures that the expenses for one time period are matched up with the related revenues for the same time period?

If the amount of net income for the current period is less than the amount of the owner's withdrawals, there will be a(n)

Drawing is recorded in the Balance Sheet Debit column of a work sheet.

If revenue and expenses were equal for an accounting period, the result would be neither a profit nor a loss.

The owner's personal withdrawals for the year cause a decrease in net income.

If the Income Statement Debit and Credit columns on a work sheet are not equal after adding the respective columns,

The adjusting entry to record the accrual of wages would involve a

The owner's Drawing account will not appear on an adjusted trial balance on the work sheet.

Assuming a normal balance, which of the following is correct concerning the income statement columns of the work sheet?

Failure to record the adjusting entry for accrued wages results in the current year's net income being overstated.

Coffee Co. has a $3,600 balance in Prepaid Insurance that represents the premium paid in advance for a six-month liability insurance policy. Assuming that 4 months of premium is still remaining, the adjustment would be recorded in the work sheet as a:

Match the terms below with the correct definitions. -Steps in the accounting process, completed during the fiscal year

Dowdy Co. has equipment with a cost of $30,000 and accumulated depreciation of $22,000. What is the book value of the equipment?

Match the terms below with the correct definitions. -Allocation of the cost of a plant asset over its estimated life

After preparing the work sheet, adjusting entries must be recorded in the __________ and then posted to the ______________.

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

After preparing the work sheet, adjusting entries must be recorded in the and then posted to the ____.