Question 1

The term, accrued wages, means that

Accepted Answer

A)  expenses have not been incurred and not paid. 
B)  expenses have been incurred but not yet been recorded. 
C)  expenses have been incurred and paid. 
D)  none of the answers listed. 
A)  expenses have not been incurred and not paid. 
B)  expenses have been incurred but not yet been recorded. 
C)  expenses have been incurred and paid. 
D)  none of the answers listed.

Question 2

Explain the matching principle and provide two examples of how it is applied in accounting records.

Accepted Answer

The matching principle requires that rec

Question 3

Accumulated Depreciation, Equipment, is shown as a(n)

Accepted Answer

A)  expense on the income statement. 
B)  liability on the balance sheet. 
C)  deduction from net income on the statement of owner's equity. 
D)  contra account on the balance sheet. 
E)  addition to equipment on the balance sheet. 
A)  expense on the income statement. 
B)  liability on the balance sheet. 
C)  deduction from net income on the statement of owner's equity. 
D)  contra account on the balance sheet. 
E)  addition to equipment on the balance sheet.

Question 4

The trial balance of B. C. Towe, Quick Cleaners, for the year ended December 31 is presented below.
Data for the adjustments are as follows:
   
Data for the adjustments are as follows:
a.Depreciation of equipment, $3,010.
b.Depreciation of van, $2,200.
c.Accrued wages, $660.
d.Insurance expired, $450.
e.Supplies remaining, $170.
Instructions:
1.Complete a work sheet for B. C. Towe, Quick Cleaners.
2.Journalize the adjusting entries.
3.Prepare an income statement, a statement of owners equity, and a balance sheet. Assume that no additional investments were made during the year.

Accepted Answer

1.)
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2.)

Question 5

The Income Statement credit column of the work sheet would include which of the following account(s)?

Accepted Answer

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

Question 6

In recording the adjusting entries for depreciation, both accounts involved are increased.

Accepted Answer

A) True 
 B)False

Question 7

The Income Statement Debit column of the work sheet contains

Accepted Answer

A)  expense account balances. 
B)  asset account balances. 
C)  liability account balances. 
D)  revenue account balances. 
E)  contra-asset account balances. 
A)  expense account balances. 
B)  asset account balances. 
C)  liability account balances. 
D)  revenue account balances. 
E)  contra-asset account balances.

Question 8

The amount of net income will appear on the debit side of the Income Statement columns on a work sheet,

Accepted Answer

A)  if total revenue exceeded total expenses for the period. 
B)  if withdrawals have been made during the period. 
C)  if total assets exceeded total liabilities for the period. 
D)  if total expenses exceeded total revenue for the period. 
E)  if net income exceeds the owner's withdrawals. 
A)  if total revenue exceeded total expenses for the period. 
B)  if withdrawals have been made during the period. 
C)  if total assets exceeded total liabilities for the period. 
D)  if total expenses exceeded total revenue for the period. 
E)  if net income exceeds the owner's withdrawals.

Question 9

Which of the following errors occur when an accountant does not record the entry to adjust accrued wages?

Accepted Answer

A)  Understatement of Accounts payable in the balance sheet. 
B)  Overstatement of operating expense in the income statement. 
C)  Understatement of Wages Expense account in the income statement. 
D)  Overstatement of total liabilities in the balance sheet. 
E)  Understatement of total assets in the balance sheet. 
A)  Understatement of Accounts payable in the balance sheet. 
B)  Overstatement of operating expense in the income statement. 
C)  Understatement of Wages Expense account in the income statement. 
D)  Overstatement of total liabilities in the balance sheet. 
E)  Understatement of total assets in the balance sheet.

Question 10

The adjusting entry to record depreciation would involve a

Accepted Answer

A)  debit to Depreciation Expense. 
B)  credit to Equipment. 
C)  credit to Cash. 
D)  debit to Accumulated Depreciation. 
A)  debit to Depreciation Expense. 
B)  credit to Equipment. 
C)  credit to Cash. 
D)  debit to Accumulated Depreciation.

Question 11

Financial statements are prepared by taking the figures directly from the work sheet.

Accepted Answer

A) True 
 B)False

Question 12

Foster Company bought equipment on January 3 of this year for $10,000. At the time of purchase, the equipment was estimated to have a useful life of nine years and a trade-in value of $1,000 at the end of nine years. Using the straight-line method, the amount of one year's depreciation is

Accepted Answer

A)  $1,111. 
B)  $1,222. 
C)  $1,000. 
D)  $9,000. 
E)  $2,000. 
A)  $1,111. 
B)  $1,222. 
C)  $1,000. 
D)  $9,000. 
E)  $2,000.

Question 13

A fiscal period must begin on January 1.

Accepted Answer

A) True 
 B)False

Question 14

In which columns of a work sheet would the adjusted balance of Accumulated Depreciation appear?

Accepted Answer

A)  Adjusted Trial Balance Credit, Balance Sheet Debit 
B)  Adjusted Trial Balance Credit, Balance Sheet Credit 
C)  Adjusted Trial Balance Credit, Income Statement Credit 
D)  Adjusted Trial Balance Debit, Balance Sheet Debit 
E)  Trial Balance Debit, Adjusted Trial Balance Debit 
A)  Adjusted Trial Balance Credit, Balance Sheet Debit 
B)  Adjusted Trial Balance Credit, Balance Sheet Credit 
C)  Adjusted Trial Balance Credit, Income Statement Credit 
D)  Adjusted Trial Balance Debit, Balance Sheet Debit 
E)  Trial Balance Debit, Adjusted Trial Balance Debit

Question 15

Assume that Sophia Co. pays its employees $250 per day and that pay day falls on Friday. Sophia Co. employees work Monday through Friday. Assume the last day of the fiscal period falls on Wednesday, the adjustment for accrued wages would be recorded in the work sheet as a:

Accepted Answer

A)  credit to wages payable, $1,250. 
B)  debit to wages expense, $1,250. 
C)  debit to wages expense, $750. 
D)  credit to cash, $750. 
A)  credit to wages payable, $1,250. 
B)  debit to wages expense, $1,250. 
C)  debit to wages expense, $750. 
D)  credit to cash, $750.

Question 16

Match the terms below with the correct definitions.
-Account that is contrary to or a deduction from another account

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 17

Star Bright Tea Co. purchases equipment with a cost of $54,400 and a trade-in value of $4,000. Star Bright Tea Co. estimates that the equipment will have a useful life of 7 years. What is the amount of depreciation for one month assuming the straight-line method?

Accepted Answer

A)  $600 
B)  $647.62 
C)  $7,200 
D)  $7,771.43 
A)  $600 
B)  $647.62 
C)  $7,200 
D)  $7,771.43

Question 18

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

Accepted Answer

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

Question 19

The sequence of steps in the accounting process completed during the fiscal period is represented by:

Accepted Answer

A)  the accounting cycle. 
B)  the adjustment period. 
C)  the worksheet cycle. 
D)  the accrual period. 
A)  the accounting cycle. 
B)  the adjustment period. 
C)  the worksheet cycle. 
D)  the accrual period.

Question 20

Any additional investments by the owner should be shown as a(n)

Accepted Answer

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

The term, accrued wages, means that

Explain the matching principle and provide two examples of how it is applied in accounting records.

Accumulated Depreciation, Equipment, is shown as a(n)

The Income Statement credit column of the work sheet would include which of the following account(s)?

In recording the adjusting entries for depreciation, both accounts involved are increased.

The Income Statement Debit column of the work sheet contains

The amount of net income will appear on the debit side of the Income Statement columns on a work sheet,

Which of the following errors occur when an accountant does not record the entry to adjust accrued wages?

The adjusting entry to record depreciation would involve a

Financial statements are prepared by taking the figures directly from the work sheet.

Foster Company bought equipment on January 3 of this year for $10,000. At the time of purchase, the equipment was estimated to have a useful life of nine years and a trade-in value of $1,000 at the end of nine years. Using the straight-line method, the amount of one year's depreciation is

A fiscal period must begin on January 1.

In which columns of a work sheet would the adjusted balance of Accumulated Depreciation appear?

Assume that Sophia Co. pays its employees $250 per day and that pay day falls on Friday. Sophia Co. employees work Monday through Friday. Assume the last day of the fiscal period falls on Wednesday, the adjustment for accrued wages would be recorded in the work sheet as a:

Match the terms below with the correct definitions. -Account that is contrary to or a deduction from another account

Star Bright Tea Co. purchases equipment with a cost of $54,400 and a trade-in value of $4,000. Star Bright Tea Co. estimates that the equipment will have a useful life of 7 years. What is the amount of depreciation for one month assuming the straight-line method?

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

The sequence of steps in the accounting process completed during the fiscal period is represented by:

Any additional investments by the owner should be shown as a(n)

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

The term, accrued wages, means that

Explain the matching principle and provide two examples of how it is applied in accounting records.

Accumulated Depreciation, Equipment, is shown as a(n)

The Income Statement credit column of the work sheet would include which of the following account(s)?

In recording the adjusting entries for depreciation, both accounts involved are increased.

The Income Statement Debit column of the work sheet contains

The amount of net income will appear on the debit side of the Income Statement columns on a work sheet,

Which of the following errors occur when an accountant does not record the entry to adjust accrued wages?

The adjusting entry to record depreciation would involve a

Financial statements are prepared by taking the figures directly from the work sheet.

Foster Company bought equipment on January 3 of this year for $10,000. At the time of purchase, the equipment was estimated to have a useful life of nine years and a trade-in value of $1,000 at the end of nine years. Using the straight-line method, the amount of one year's depreciation is

A fiscal period must begin on January 1.

In which columns of a work sheet would the adjusted balance of Accumulated Depreciation appear?

Assume that Sophia Co. pays its employees $250 per day and that pay day falls on Friday. Sophia Co. employees work Monday through Friday. Assume the last day of the fiscal period falls on Wednesday, the adjustment for accrued wages would be recorded in the work sheet as a:

Match the terms below with the correct definitions. -Account that is contrary to or a deduction from another account

Star Bright Tea Co. purchases equipment with a cost of $54,400 and a trade-in value of $4,000. Star Bright Tea Co. estimates that the equipment will have a useful life of 7 years. What is the amount of depreciation for one month assuming the straight-line method?

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

The sequence of steps in the accounting process completed during the fiscal period is represented by:

Any additional investments by the owner should be shown as a(n)

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