Question 1

Which of the following accounts would appear in the Balance Sheet Credit column of a work sheet?

Accepted Answer

A)  Equipment 
B)  Wages Payable 
C)  Cash 
D)  Insurance Expense 
E)  Sales 
A)  Equipment 
B)  Wages Payable 
C)  Cash 
D)  Insurance Expense 
E)  Sales

Question 2

Match the terms below with the correct definitions.
-The credit account of the adjustment for accrued payroll

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 3

The inventory system where a business continually maintains a cost record of each item in stock

Accepted Answer

A)  Periodic Inventory System 
B)  Perpetual Inventory System 
C)  Inventory Cost Control System 
D)  None of the above. 
A)  Periodic Inventory System 
B)  Perpetual Inventory System 
C)  Inventory Cost Control System 
D)  None of the above.

Question 4

An example of unearned revenues

Accepted Answer

A)  Collecting 3 months rent in advance 
B)  Paying 3 months rent in advance 
C)  Collecting the current month's rent 
D)  Paying the current month's rent 
A)  Collecting 3 months rent in advance 
B)  Paying 3 months rent in advance 
C)  Collecting the current month's rent 
D)  Paying the current month's rent

Question 5

Match the terms below with the correct definitions.
-Merchandise Inventory that appears in the Balance Sheet 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 6

The adjusting entry for depreciation will decrease the Accumulated Depreciation account.

Accepted Answer

A) True 
 B)False

Question 7

If Income Summary has a debit of $80,000 and a credit of $85,000 in the Adjustments columns of the work sheet, these will be combined into a debit of $5,000 in the Income Statement Debit or Credit column.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following accounts is adjusted with a credit for the amount of expired insurance at the end of an accounting cycle?

Accepted Answer

A)  Insurance Expense account 
B)  Insurance Payable account 
C)  Prepaid Insurance account 
D)  Insurance Receivable account 
A)  Insurance Expense account 
B)  Insurance Payable account 
C)  Prepaid Insurance account 
D)  Insurance Receivable account

Question 9

The Unearned Revenue account would be used when a company

Accepted Answer

A)  collects cash and earns the revenue in the same fiscal period. 
B)  collects cash and earns the revenue over two fiscal periods. 
C)  pays cash for services not yet earned. 
D)  pays cash for services earned in two fiscal periods. 
E)  does none of these. 
A)  collects cash and earns the revenue in the same fiscal period. 
B)  collects cash and earns the revenue over two fiscal periods. 
C)  pays cash for services not yet earned. 
D)  pays cash for services earned in two fiscal periods. 
E)  does none of these.

Question 10

At the end of the accounting period, the following should occur with supplies.

Accepted Answer

A)  No action is required. 
B)  An adjusting entry should be made to expense the used supplies at the end of the period. 
C)  A physical inventory should be taken. 
D)  Both b and 
A)  No action is required. 
B)  An adjusting entry should be made to expense the used supplies at the end of the period. 
C)  A physical inventory should be taken. 
D)  Both b and

Question 11

In the completed work sheet, which of the following sets of columns would contain the two balances in the Income Summary account representing beginning and ending inventory when using the periodic inventory system?

Accepted Answer

A)  Adjustments and Balance Sheet columns 
B)  Trial Balance and Adjustments columns 
C)  Adjustments and Income Statement columns 
D)  Trial Balance and Income Statement columns 
E)  Trial Balance and Balance Sheet columns 
A)  Adjustments and Balance Sheet columns 
B)  Trial Balance and Adjustments columns 
C)  Adjustments and Income Statement columns 
D)  Trial Balance and Income Statement columns 
E)  Trial Balance and Balance Sheet columns

Question 12

The Unearned Revenue account normally has a debit balance.

Accepted Answer

A) True 
 B)False

Question 13

A baseball team records ticket revenue received in advance as Unearned Revenue. On the team's work sheet, the required adjusting entry is

Accepted Answer

A)  debit Cash; credit Unearned Revenue. 
B)  debit Revenue; credit Unearned Revenue. 
C)  debit Unearned Revenue; credit Cash. 
D)  debit Unearned Revenue; credit Revenue. 
E)  debit Cash; credit Unearned Revenue Income. 
A)  debit Cash; credit Unearned Revenue. 
B)  debit Revenue; credit Unearned Revenue. 
C)  debit Unearned Revenue; credit Cash. 
D)  debit Unearned Revenue; credit Revenue. 
E)  debit Cash; credit Unearned Revenue Income.

Question 14

Wages Expense has a balance of $55,400 in the Trial Balance Debit column of a work sheet. The Adjustments Credit column contains a $500 credit to Wages Payable. The Adjusted Trial Balance columns will show

Accepted Answer

A)  Wages Expense with a debit balance of $54,900. 
B)  Wages Expense with a debit balance of $500. 
C)  Wages Payable with a credit balance of $55,900. 
D)  Wages Expense with a debit balance of $55,900. 
E)  Wages Expense with a credit balance of $55,900. 
A)  Wages Expense with a debit balance of $54,900. 
B)  Wages Expense with a debit balance of $500. 
C)  Wages Payable with a credit balance of $55,900. 
D)  Wages Expense with a debit balance of $55,900. 
E)  Wages Expense with a credit balance of $55,900.

Question 15

For the year ended December 31, Bailey Tool Company uses the periodic inventory system and has the following adjusting entry information:
Instructions:
Journalize in quality format the necessary adjusting entries for Bailey Tool Company.

Accepted Answer

The answer of For the year ended December 31, Bailey...

Question 16

In the Income Statement columns of the work sheet, Income Summary is shown as the net balance of the two amounts in the Adjustments column.

Accepted Answer

A) True 
 B)False

Question 17

The temporary account used when adjusting Merchandise Inventory using the periodic inventory system

Accepted Answer

A)  Inventory Clearing Account 
B)  Inventory Holding Account 
C)  Income Summary Account 
D)  None of the above 
A)  Inventory Clearing Account 
B)  Inventory Holding Account 
C)  Income Summary Account 
D)  None of the above

Question 18

The Income Summary account line on the work sheet

Accepted Answer

A)  has a debit and a credit side. 
B)  relates to adjusting merchandise inventory. 
C)  is the only account in which we don't combine the debit and credit figures. 
D)  is all of these. 
E)  is none of these. 
A)  has a debit and a credit side. 
B)  relates to adjusting merchandise inventory. 
C)  is the only account in which we don't combine the debit and credit figures. 
D)  is all of these. 
E)  is none of these.

Question 19

The first adjusting entry for merchandise inventory causes a zero balance in the Merchandise Inventory account when using the periodic inventory system.

Accepted Answer

A) True 
 B)False

Question 20

The Service Income account is classified as a(n)

Accepted Answer

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

Which of the following accounts would appear in the Balance Sheet Credit column of a work sheet?

Match the terms below with the correct definitions. -The credit account of the adjustment for accrued payroll

The inventory system where a business continually maintains a cost record of each item in stock

An example of unearned revenues

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

The adjusting entry for depreciation will decrease the Accumulated Depreciation account.

If Income Summary has a debit of $80,000 and a credit of $85,000 in the Adjustments columns of the work sheet, these will be combined into a debit of $5,000 in the Income Statement Debit or Credit column.

Which of the following accounts is adjusted with a credit for the amount of expired insurance at the end of an accounting cycle?

The Unearned Revenue account would be used when a company

At the end of the accounting period, the following should occur with supplies.

In the completed work sheet, which of the following sets of columns would contain the two balances in the Income Summary account representing beginning and ending inventory when using the periodic inventory system?

The Unearned Revenue account normally has a debit balance.

A baseball team records ticket revenue received in advance as Unearned Revenue. On the team's work sheet, the required adjusting entry is

Wages Expense has a balance of $55,400 in the Trial Balance Debit column of a work sheet. The Adjustments Credit column contains a $500 credit to Wages Payable. The Adjusted Trial Balance columns will show

For the year ended December 31, Bailey Tool Company uses the periodic inventory system and has the following adjusting entry information: Instructions: Journalize in quality format the necessary adjusting entries for Bailey Tool Company.

In the Income Statement columns of the work sheet, Income Summary is shown as the net balance of the two amounts in the Adjustments column.

The temporary account used when adjusting Merchandise Inventory using the periodic inventory system

The Income Summary account line on the work sheet

The first adjusting entry for merchandise inventory causes a zero balance in the Merchandise Inventory account when using the periodic inventory system.

The Service Income account is classified 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

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 accounts would appear in the Balance Sheet Credit column of a work sheet?

Match the terms below with the correct definitions. -The credit account of the adjustment for accrued payroll

The inventory system where a business continually maintains a cost record of each item in stock

An example of unearned revenues

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

The adjusting entry for depreciation will decrease the Accumulated Depreciation account.

If Income Summary has a debit of $80,000 and a credit of $85,000 in the Adjustments columns of the work sheet, these will be combined into a debit of $5,000 in the Income Statement Debit or Credit column.

Which of the following accounts is adjusted with a credit for the amount of expired insurance at the end of an accounting cycle?

The Unearned Revenue account would be used when a company

At the end of the accounting period, the following should occur with supplies.

In the completed work sheet, which of the following sets of columns would contain the two balances in the Income Summary account representing beginning and ending inventory when using the periodic inventory system?

The Unearned Revenue account normally has a debit balance.

A baseball team records ticket revenue received in advance as Unearned Revenue. On the team's work sheet, the required adjusting entry is

Wages Expense has a balance of $55,400 in the Trial Balance Debit column of a work sheet. The Adjustments Credit column contains a $500 credit to Wages Payable. The Adjusted Trial Balance columns will show

For the year ended December 31, Bailey Tool Company uses the periodic inventory system and has the following adjusting entry information: Instructions: Journalize in quality format the necessary adjusting entries for Bailey Tool Company.

In the Income Statement columns of the work sheet, Income Summary is shown as the net balance of the two amounts in the Adjustments column.

The temporary account used when adjusting Merchandise Inventory using the periodic inventory system

The Income Summary account line on the work sheet

The first adjusting entry for merchandise inventory causes a zero balance in the Merchandise Inventory account when using the periodic inventory system.

The Service Income account is classified 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

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