Question 1

Which of the following does NOT require an adjusting entry?

Accepted Answer

A)  Inventory discrepancies 
B)  Expired Insurance 
C)  Collection of money on account 
D)  Depreciation of Equipment 
A)  Inventory discrepancies 
B)  Expired Insurance 
C)  Collection of money on account 
D)  Depreciation of Equipment

Question 2

Purchase Discounts appear under which column of the worksheet, with the following normal balance?

Accepted Answer

A)  Income Statement, CR 
B)  Income Statement, DR 
C)  Balance Sheet, CR 
D)  Balance Sheet, DR 
A)  Income Statement, CR 
B)  Income Statement, DR 
C)  Balance Sheet, CR 
D)  Balance Sheet, DR

Question 3

On the worksheet of Hill Corporation, the income statement debit column equals $78,500 and the income statement credit column equals $69,450. Hill Corporation has a:

Accepted Answer

A)  net loss of $9,050 that is added to the income statement credit column. 
B)  net income of $4,525 that is added to the income statement debit column. 
C)  net loss of $9,050 that is added to the balance sheet credit column. 
D)  net income of $4,525 that is added to the balance sheet debit column. 
E)  net income of $9,050 that is added to the adjusted trial balance credit column. 
A)  net loss of $9,050 that is added to the income statement credit column. 
B)  net income of $4,525 that is added to the income statement debit column. 
C)  net loss of $9,050 that is added to the balance sheet credit column. 
D)  net income of $4,525 that is added to the balance sheet debit column. 
E)  net income of $9,050 that is added to the adjusted trial balance credit column.

Question 4

An actual count of a stock of goods on hand is called a physical inventory.

Accepted Answer

A) True 
 B)False

Question 5

Unearned Subscriptions is classified as a liability account.

Accepted Answer

A) True 
 B)False

Question 6

Match the terms below with the correct definitions.
-Debit Merchandise Inventory; credit Income Summary

Accepted Answer

A) Unearned Revenue 
B) Income Summary 
C) First merchandise inventory adjusting entry (periodic system) 
D) Beginning merchandise inventory 
E) Ending merchandise inventory
F)Periodic inventory system
G)Wages Payable
H)Wages Expense
I)Purchases
J)Second merchandise inventory adjusting entry (periodic system) 
A) Unearned Revenue 
B) Income Summary 
C) First merchandise inventory adjusting entry (periodic system) 
D) Beginning merchandise inventory 
E) Ending merchandise inventory
F)Periodic inventory system
G)Wages Payable
H)Wages Expense
I)Purchases
J)Second merchandise inventory adjusting entry (periodic system)

Question 7

Sales appear under which worksheet column and has the following normal balance:

Accepted Answer

A)  Income Statement, DR 
B)  Income Statement, CR 
C)  Balance Sheet, CR 
D)  Balance Sheet, DR 
A)  Income Statement, DR 
B)  Income Statement, CR 
C)  Balance Sheet, CR 
D)  Balance Sheet, DR

Question 8

On the work sheet, Purchases Discounts appears in the

Accepted Answer

A)  Trial Balance Debit column and the Income Statement Credit column. 
B)  Trial Balance Credit column and the Balance Sheet Credit column. 
C)  Trial Balance Debit column and the Income Statement Debit column. 
D)  Trial Balance Credit column and the Income Statement Credit column. 
E)  Adjustments Debit column and the Income Statement Credit column. 
A)  Trial Balance Debit column and the Income Statement Credit column. 
B)  Trial Balance Credit column and the Balance Sheet Credit column. 
C)  Trial Balance Debit column and the Income Statement Debit column. 
D)  Trial Balance Credit column and the Income Statement Credit column. 
E)  Adjustments Debit column and the Income Statement Credit column.

Question 9

The Prepaid Insurance account has a balance of $200 less in the work sheet's Balance Sheet Debit column than in the work sheet's Trial Balance Debit column. This would be the result of a

Accepted Answer

A)  $200 entry to Prepaid Insurance in the work sheet's Adjustments Credit column. 
B)  $200 entry to Prepaid Insurance in the work sheet's Adjustments Debit column. 
C)  $200 entry to Insurance Expense in the work sheet's Adjustments Credit column. 
D)  $400 entry to Insurance Expense in the work sheet's Adjustments Credit column. 
E)  $400 entry to Prepaid Insurance in the work sheet's Adjustments Credit column. 
A)  $200 entry to Prepaid Insurance in the work sheet's Adjustments Credit column. 
B)  $200 entry to Prepaid Insurance in the work sheet's Adjustments Debit column. 
C)  $200 entry to Insurance Expense in the work sheet's Adjustments Credit column. 
D)  $400 entry to Insurance Expense in the work sheet's Adjustments Credit column. 
E)  $400 entry to Prepaid Insurance in the work sheet's Adjustments Credit column.

Question 10

Unearned Revenue appears in the

Accepted Answer

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

Question 11

If the physical inventory is less than the amount in the accounting inventory records, this is known as

Accepted Answer

A)  Inventory Short/Over 
B)  Inventory Shrinkage 
C)  Inventory Adjustment 
D)  Inventory Discrepancy 
A)  Inventory Short/Over 
B)  Inventory Shrinkage 
C)  Inventory Adjustment 
D)  Inventory Discrepancy

Question 12

Match between columns
                        Premises:  An inventory system that debits Purchases when goods are bought
 Liability account that is credited when cash is received in advance for the delivery of goods or services to be earned in two fiscal periods
 Merchandise Inventory that appears in the Income Statement Debit column of the work sheet
 The credit account of the adjustment for accrued payroll
 Temporary account used for adjusting Merchandise Inventory account
 Debit Income Summary; credit Merchandise Inventory
 An account debited when goods are bought for resale (using the periodic inventory system)
 The debit account of the adjustment for accrued payroll
 Debit Merchandise Inventory; credit Income Summary
 Merchandise Inventory that appears in the Balance Sheet Debit column of the work sheet

Accepted Answer

The Answer of Unearned Revenue and Income Summary and First is...

Question 13

The ending merchandise inventory (using the periodic system) is placed on the books by an adjusting entry

Accepted Answer

A)  debiting Merchandise Inventory and crediting Sales. 
B)  debiting Income Summary and crediting Merchandise Inventory. 
C)  debiting Merchandise Inventory and crediting Income Summary. 
D)  debiting Purchases and crediting Merchandise Inventory. 
E)  debiting Merchandise Inventory and crediting Purchases. 
A)  debiting Merchandise Inventory and crediting Sales. 
B)  debiting Income Summary and crediting Merchandise Inventory. 
C)  debiting Merchandise Inventory and crediting Income Summary. 
D)  debiting Purchases and crediting Merchandise Inventory. 
E)  debiting Merchandise Inventory and crediting Purchases.

Question 14

Online Computer Services follows accrual-based accounting. It receives $7,000 in advance for services to be performed in both the current and following fiscal period. Which of the following entries records this transaction?

Accepted Answer

A)  A debit to Cash and a credit to Service Revenue 
B)  A debit to Cash and a credit to Accounts Payable 
C)  A debit to Cash and a credit to Unearned Service Revenue 
D)  A debit to Unearned Service Revenue and a credit to Service Revenue 
E)  A debit to Service Revenue and a credit to Unearned Service Revenue 
A)  A debit to Cash and a credit to Service Revenue 
B)  A debit to Cash and a credit to Accounts Payable 
C)  A debit to Cash and a credit to Unearned Service Revenue 
D)  A debit to Unearned Service Revenue and a credit to Service Revenue 
E)  A debit to Service Revenue and a credit to Unearned Service Revenue

Question 15

Under a periodic inventory system, entries are recorded in the Merchandise Inventory account at the end of the fiscal period only.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following accounts is located on the income statement columns of a work sheet?

Accepted Answer

A)  Merchandise Inventory 
B)  Sales 
C)  Wages Payable 
D)  Unearned Revenues 
A)  Merchandise Inventory 
B)  Sales 
C)  Wages Payable 
D)  Unearned Revenues

Question 17

If the trial balance amount of Unearned Pest Spray Revenue is $50,000, and $40,000 has been earned by the end of the fiscal period, the adjustment would be

Accepted Answer

A)  debit Accounts Payable; credit Unearned Pest Spray Revenue. 
B)  debit Unearned Pest Spray Revenue; credit Pest Spray Revenue. 
C)  debit Pest Spray Revenue; credit Unearned Pest Spray Revenue. 
D)  debit Unearned Pest Spray Revenue; credit Cash. 
E)  debit Cash; credit Unearned Pest Spray Revenue. 
A)  debit Accounts Payable; credit Unearned Pest Spray Revenue. 
B)  debit Unearned Pest Spray Revenue; credit Pest Spray Revenue. 
C)  debit Pest Spray Revenue; credit Unearned Pest Spray Revenue. 
D)  debit Unearned Pest Spray Revenue; credit Cash. 
E)  debit Cash; credit Unearned Pest Spray Revenue.

Question 18

Match the terms below with the correct definitions.
-Merchandise Inventory that appears in the Income Statement Debit column of the work sheet

Accepted Answer

A) Unearned Revenue 
B) Income Summary 
C) First merchandise inventory adjusting entry (periodic system) 
D) Beginning merchandise inventory 
E) Ending merchandise inventory
F)Periodic inventory system
G)Wages Payable
H)Wages Expense
I)Purchases
J)Second merchandise inventory adjusting entry (periodic system) 
A) Unearned Revenue 
B) Income Summary 
C) First merchandise inventory adjusting entry (periodic system) 
D) Beginning merchandise inventory 
E) Ending merchandise inventory
F)Periodic inventory system
G)Wages Payable
H)Wages Expense
I)Purchases
J)Second merchandise inventory adjusting entry (periodic system)

Question 19

The inventory system that makes an adjustment to the Merchandise Inventory account only when an actual physical inventory is taken

Accepted Answer

A)  Physical Inventory Method 
B)  Periodic Inventory System 
C)  Perpetual Inventory System 
D)  Count of Stock Method 
A)  Physical Inventory Method 
B)  Periodic Inventory System 
C)  Perpetual Inventory System 
D)  Count of Stock Method

Question 20

Wages Payable is an example of

Accepted Answer

A)  Unearned Revenues 
B)  Expense 
C)  Liability 
D)  Prepaid Revenue 
A)  Unearned Revenues 
B)  Expense 
C)  Liability 
D)  Prepaid Revenue

Which of the following does NOT require an adjusting entry?

Purchase Discounts appear under which column of the worksheet, with the following normal balance?

On the worksheet of Hill Corporation, the income statement debit column equals $78,500 and the income statement credit column equals $69,450. Hill Corporation has a:

An actual count of a stock of goods on hand is called a physical inventory.

Unearned Subscriptions is classified as a liability account.

Match the terms below with the correct definitions. -Debit Merchandise Inventory; credit Income Summary

Sales appear under which worksheet column and has the following normal balance:

On the work sheet, Purchases Discounts appears in the

The Prepaid Insurance account has a balance of $200 less in the work sheet's Balance Sheet Debit column than in the work sheet's Trial Balance Debit column. This would be the result of a

Unearned Revenue appears in the

If the physical inventory is less than the amount in the accounting inventory records, this is known as

The ending merchandise inventory (using the periodic system) is placed on the books by an adjusting entry

Online Computer Services follows accrual-based accounting. It receives $7,000 in advance for services to be performed in both the current and following fiscal period. Which of the following entries records this transaction?

Under a periodic inventory system, entries are recorded in the Merchandise Inventory account at the end of the fiscal period only.

Which of the following accounts is located on the income statement columns of a work sheet?

If the trial balance amount of Unearned Pest Spray Revenue is $50,000, and $40,000 has been earned by the end of the fiscal period, the adjustment would be

Match the terms below with the correct definitions. -Merchandise Inventory that appears in the Income Statement Debit column of the work sheet

The inventory system that makes an adjustment to the Merchandise Inventory account only when an actual physical inventory is taken

Wages Payable is an example of

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

Adjusting Entries and the Work Sheet

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

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters

Exam 11: Work Sheet and Adjusting Entries

Which of the following does NOT require an adjusting entry?

Purchase Discounts appear under which column of the worksheet, with the following normal balance?

On the worksheet of Hill Corporation, the income statement debit column equals $78,500 and the income statement credit column equals $69,450. Hill Corporation has a:

An actual count of a stock of goods on hand is called a physical inventory.

Unearned Subscriptions is classified as a liability account.

Match the terms below with the correct definitions. -Debit Merchandise Inventory; credit Income Summary

Sales appear under which worksheet column and has the following normal balance:

On the work sheet, Purchases Discounts appears in the

The Prepaid Insurance account has a balance of $200 less in the work sheet's Balance Sheet Debit column than in the work sheet's Trial Balance Debit column. This would be the result of a

Unearned Revenue appears in the

If the physical inventory is less than the amount in the accounting inventory records, this is known as

The ending merchandise inventory (using the periodic system) is placed on the books by an adjusting entry

Online Computer Services follows accrual-based accounting. It receives $7,000 in advance for services to be performed in both the current and following fiscal period. Which of the following entries records this transaction?

Under a periodic inventory system, entries are recorded in the Merchandise Inventory account at the end of the fiscal period only.

Which of the following accounts is located on the income statement columns of a work sheet?

If the trial balance amount of Unearned Pest Spray Revenue is $50,000, and $40,000 has been earned by the end of the fiscal period, the adjustment would be

Match the terms below with the correct definitions. -Merchandise Inventory that appears in the Income Statement Debit column of the work sheet

The inventory system that makes an adjustment to the Merchandise Inventory account only when an actual physical inventory is taken

Wages Payable is an example of

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

Adjusting Entries and the Work Sheet

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

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters