Question 1

Match the terms below with the correct definitions.
-Amount that one would expect to be the value of an asset when its estimated life is over

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 2

Explain the differences between net income and net loss.

Accepted Answer

Net income or net loss is calc

Question 3

Every Friday, Neil pays weekly wages of $15,000 to his workers for a five-day week which ends on that day. Assuming that the fiscal period ends on a Tuesday, the adjusting entry for accrual of wages recorded by Neil is:

Accepted Answer

A)  debit to Wages Expense for $10,000, credit to Drawing for $10,000. 
B)  debit to Wages Expense for $6,000, credit to Wages Payable for $6,000. 
C)  debit to Drawing for $6,000, credit to Wages Payable for $6,000. 
D)  debit to Wages Payable for $15,000, credit to Wages Expense for $15,000. 
E)  debit to Accrued Wages for $5,000, credit to Wages Payable for $5,000.
​ 
A)  debit to Wages Expense for $10,000, credit to Drawing for $10,000. 
B)  debit to Wages Expense for $6,000, credit to Wages Payable for $6,000. 
C)  debit to Drawing for $6,000, credit to Wages Payable for $6,000. 
D)  debit to Wages Payable for $15,000, credit to Wages Expense for $15,000. 
E)  debit to Accrued Wages for $5,000, credit to Wages Payable for $5,000.
​

Question 4

An asset's book value represents the true market value of the asset.

Accepted Answer

A) True 
 B)False

Question 5

A net loss should be shown as a(n)

Accepted Answer

A)  addition on the Balance Sheet. 
B)  addition on the Income Statement. 
C)  subtraction on the Statement of Owner's Equity. 
D)  addition on the Statement of Owner's Equity. 
A)  addition on the Balance Sheet. 
B)  addition on the Income Statement. 
C)  subtraction on the Statement of Owner's Equity. 
D)  addition on the Statement of Owner's Equity.

Question 6

Which of the following would be considered a fiscal year?

Accepted Answer

A)  April 1, 20- to March 31, 20- 
B)  January 1, 20- to March 31, 20- 
C)  October 1, 20- to May 31, 20- 
D)  None of the answers listed 
A)  April 1, 20- to March 31, 20- 
B)  January 1, 20- to March 31, 20- 
C)  October 1, 20- to May 31, 20- 
D)  None of the answers listed

Question 7

The work sheet is used to pull together up-to-date account balances needed to prepare the financial statements.

Accepted Answer

A) True 
 B)False

Question 8

The balance in the Prepaid Insurance account before adjustment at the end of the year is $720, which represents twelve months' insurance purchased on December 1. The adjusting entry required for the month of December, on December 31, the end of the fiscal year, is

Accepted Answer

A)  debit Insurance Expense, $60; credit Prepaid Insurance, $60. 
B)  debit Insurance Expense, $660; credit Prepaid Insurance, $660. 
C)  debit Prepaid Insurance, $60; credit Insurance Expense, $60. 
D)  debit Prepaid Insurance, $720; credit Insurance Expense, $720. 
E)  debit Insurance Expense, $60; credit Insurance Payable, $60. 
A)  debit Insurance Expense, $60; credit Prepaid Insurance, $60. 
B)  debit Insurance Expense, $660; credit Prepaid Insurance, $660. 
C)  debit Prepaid Insurance, $60; credit Insurance Expense, $60. 
D)  debit Prepaid Insurance, $720; credit Insurance Expense, $720. 
E)  debit Insurance Expense, $60; credit Insurance Payable, $60.

Question 9

Which of the following is correct concerning the work sheet?

Accepted Answer

A)  Assets are shown as credits in the adjusted trial balance columns. 
B)  Capital is shown as a credit in the balance sheet columns. 
C)  Revenues are shown as credits in the balance sheet columns. 
D)  Liabilities are shown as credits in the income statement columns. 
A)  Assets are shown as credits in the adjusted trial balance columns. 
B)  Capital is shown as a credit in the balance sheet columns. 
C)  Revenues are shown as credits in the balance sheet columns. 
D)  Liabilities are shown as credits in the income statement columns.

Question 10

San Antonio Company's accountant just completed the work sheet; however, the Balance Sheet columns are not equal. What step(s) should the accountant perform?

Accepted Answer

A)  Check to see if the amount of net income or loss is recorded in the correct column. 
B)  Verify the addition of all columns. 
C)  Look to see if the appropriate amounts have been recorded in the columns. 
D)  Verify that the amounts have been correctly carried over from the Trial Balance columns. 
E)  All of the answers listed are correct. 
A)  Check to see if the amount of net income or loss is recorded in the correct column. 
B)  Verify the addition of all columns. 
C)  Look to see if the appropriate amounts have been recorded in the columns. 
D)  Verify that the amounts have been correctly carried over from the Trial Balance columns. 
E)  All of the answers listed are correct.

Question 11

The expiration of usefulness of equipment during an accounting period is called depreciation.

Accepted Answer

A) True 
 B)False

Question 12

The owner's Capital account is found on the

Accepted Answer

A)  Trial Balance Credit column and Income Statement Debit column of a work sheet. 
B)  Trial Balance Credit column, Adjusted Trial Balance Credit column, and Balance Sheet Credit column of a work sheet. 
C)  Trial Balance Credit column, Adjustments Credit column, Adjusted Trial Balance Credit column, and Balance Sheet Credit column of a work sheet. 
D)  Trial Balance Debit column, Adjustments Debit column, Adjusted Trial Balance Credit column, and Income Statement Credit column of a work sheet. 
E)  Balance Sheet Debit column and nowhere else. 
A)  Trial Balance Credit column and Income Statement Debit column of a work sheet. 
B)  Trial Balance Credit column, Adjusted Trial Balance Credit column, and Balance Sheet Credit column of a work sheet. 
C)  Trial Balance Credit column, Adjustments Credit column, Adjusted Trial Balance Credit column, and Balance Sheet Credit column of a work sheet. 
D)  Trial Balance Debit column, Adjustments Debit column, Adjusted Trial Balance Credit column, and Income Statement Credit column of a work sheet. 
E)  Balance Sheet Debit column and nowhere else.

Question 13

Which of the following terms refers to the cost of an equipment allocated as an expense over its estimated useful life?

Accepted Answer

A)  Sunk cost 
B)  Depreciation 
C)  Adjustments 
D)  Book value 
E)  Mixed cost 
A)  Sunk cost 
B)  Depreciation 
C)  Adjustments 
D)  Book value 
E)  Mixed cost

Question 14

Burnet Co. has a $4,050 balance in Prepaid Insurance that represents the premium paid in advance for a nine-month liability insurance policy. Assuming that 5 months of premium is still remaining, the adjusting entry would be recorded as:

Accepted Answer

A)  
Insurance Expense $\quad \$ 1,800$
Prepaid Insurance $\quad \$ 1,800$ 
B)  
Insurance Expense $\quad \$ 2,250$
Prepaid Insurance $\quad \$ 2,250$ 
C)  
Insurance Expense $\quad \$ 1,800$
Cash$\quad\$ 1,800$ 
D)  
$\begin{array} { l r } 
\text { Insurance Expense } & \$ 2,250 \
\text { Cash } & \$ 2,250
\end{array}$ 
A)  
Insurance Expense $\quad \$ 1,800$
Prepaid Insurance $\quad \$ 1,800$ 
B)  
Insurance Expense $\quad \$ 2,250$
Prepaid Insurance $\quad \$ 2,250$ 
C)  
Insurance Expense $\quad \$ 1,800$
Cash$\quad\$ 1,800$ 
D)  
$\begin{array} { l r } 
\text { Insurance Expense } & \$ 2,250 \
\text { Cash } & \$ 2,250
\end{array}$

Question 15

Match the terms below with the correct definitions.
-Process of recording internal transactions at the end of the fiscal period for updating some 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 16

If revenues are larger than expenses, the resulting net income would be recorded

Accepted Answer

A)  on the credit side of the income statement columns of the work sheet. 
B)  on the debit side of the balance sheet columns of the work sheet. 
C)  on the debit side of the income statement columns of the work sheet. 
D)  none of the answers listed. 
A)  on the credit side of the income statement columns of the work sheet. 
B)  on the debit side of the balance sheet columns of the work sheet. 
C)  on the debit side of the income statement columns of the work sheet. 
D)  none of the answers listed.

Question 17

Classify each of the following accounts as to whether they would appear on a balance sheet (BS) or income statement (IS).
 ___Accounts Payable
___Accounts Receivable
___Accumulated Depreciation, Equipment
___Advertising Expense
___Cash
___Depreciation Expense, Equipment
___Equipment
___Income from Tours
___Insurance Expense
___Owner, Capital
___Frepaid Insurance
___Rent Expense
___Supplies
___Utilities Expense
___Wages Expense
___Wages Payable

Accepted Answer

The answer of Classify each of the following accounts as...

Question 18

Because adjusting entries are recorded on a work sheet, they do not need to be journalized or posted.

Accepted Answer

A) True 
 B)False

Question 19

Accounts that are partly income statement amounts and partly balance sheet amounts are called mixed accounts.

Accepted Answer

A) True 
 B)False

Question 20

Assuming a normal balance, which of the following is correct concerning the balance sheet 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)  Revenues are shown as credits. 
A)  Assets are shown as debits. 
B)  Liabilities are shown as debits. 
C)  The drawing account is shown as a credit. 
D)  Revenues are shown as credits.

Match the terms below with the correct definitions. -Amount that one would expect to be the value of an asset when its estimated life is over

Explain the differences between net income and net loss.

Every Friday, Neil pays weekly wages of $15,000 to his workers for a five-day week which ends on that day. Assuming that the fiscal period ends on a Tuesday, the adjusting entry for accrual of wages recorded by Neil is:

An asset's book value represents the true market value of the asset.

A net loss should be shown as a(n)

Which of the following would be considered a fiscal year?

The work sheet is used to pull together up-to-date account balances needed to prepare the financial statements.

The balance in the Prepaid Insurance account before adjustment at the end of the year is $720, which represents twelve months' insurance purchased on December 1. The adjusting entry required for the month of December, on December 31, the end of the fiscal year, is

Which of the following is correct concerning the work sheet?

San Antonio Company's accountant just completed the work sheet; however, the Balance Sheet columns are not equal. What step(s) should the accountant perform?

The expiration of usefulness of equipment during an accounting period is called depreciation.

The owner's Capital account is found on the

Which of the following terms refers to the cost of an equipment allocated as an expense over its estimated useful life?

Burnet Co. has a $4,050 balance in Prepaid Insurance that represents the premium paid in advance for a nine-month liability insurance policy. Assuming that 5 months of premium is still remaining, the adjusting entry would be recorded as:

Match the terms below with the correct definitions. -Process of recording internal transactions at the end of the fiscal period for updating some accounts

If revenues are larger than expenses, the resulting net income would be recorded

Because adjusting entries are recorded on a work sheet, they do not need to be journalized or posted.

Accounts that are partly income statement amounts and partly balance sheet amounts are called mixed accounts.

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

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

Match the terms below with the correct definitions. -Amount that one would expect to be the value of an asset when its estimated life is over

Explain the differences between net income and net loss.

Every Friday, Neil pays weekly wages of $15,000 to his workers for a five-day week which ends on that day. Assuming that the fiscal period ends on a Tuesday, the adjusting entry for accrual of wages recorded by Neil is:

An asset's book value represents the true market value of the asset.

A net loss should be shown as a(n)

Which of the following would be considered a fiscal year?

The work sheet is used to pull together up-to-date account balances needed to prepare the financial statements.

The balance in the Prepaid Insurance account before adjustment at the end of the year is $720, which represents twelve months' insurance purchased on December 1. The adjusting entry required for the month of December, on December 31, the end of the fiscal year, is

Which of the following is correct concerning the work sheet?

San Antonio Company's accountant just completed the work sheet; however, the Balance Sheet columns are not equal. What step(s) should the accountant perform?

The expiration of usefulness of equipment during an accounting period is called depreciation.

The owner's Capital account is found on the

Which of the following terms refers to the cost of an equipment allocated as an expense over its estimated useful life?

Burnet Co. has a $4,050 balance in Prepaid Insurance that represents the premium paid in advance for a nine-month liability insurance policy. Assuming that 5 months of premium is still remaining, the adjusting entry would be recorded as:

Match the terms below with the correct definitions. -Process of recording internal transactions at the end of the fiscal period for updating some accounts

If revenues are larger than expenses, the resulting net income would be recorded

Because adjusting entries are recorded on a work sheet, they do not need to be journalized or posted.

Accounts that are partly income statement amounts and partly balance sheet amounts are called mixed accounts.

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

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