Question 1

Cash received in advance for goods to be delivered or services to be provided later

Accepted Answer

A)  Revenues 
B)  Sales 
C)  Unearned Revenues 
D)  Prepaid Revenues 
A)  Revenues 
B)  Sales 
C)  Unearned Revenues 
D)  Prepaid Revenues

Question 2

The appropriate journal for recording the adjusting entry for Merchandise Inventory is

Accepted Answer

A)  the cash payments journal. 
B)  the purchases journal. 
C)  the sales journal. 
D)  the general journal. 
E)  either the cash payments journal or the purchases journal. 
A)  the cash payments journal. 
B)  the purchases journal. 
C)  the sales journal. 
D)  the general journal. 
E)  either the cash payments journal or the purchases journal.

Question 3

Cash appears in which worksheet column and has the following normal balance:

Accepted Answer

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

Question 4

The adjusting entry for expired or used insurance will increase the Insurance Expense account.

Accepted Answer

A) True 
 B)False

Question 5

Royal Theater credited Unearned Revenue of $35,000 for tickets sold for its season of four plays, which will be presented at the end of one fiscal period and the beginning of the next. As of December 31, the end of their fiscal period, Royal Theater had earned $16,000. The adjusting entry is

Accepted Answer

A)  debit Cash, $16,000; credit Ticket Income, $16,000. 
B)  debit Unearned Revenue, $19,000; credit Ticket Income, $19,000. 
C)  debit Unearned Revenue, $16,000; credit Ticket Income, $16,000. 
D)  debit Ticket Income, $19,000; credit Unearned Ticket Revenue, $19,000. 
E)  debit Cash, $16,000; credit Unearned Ticket Revenue, $16,000. 
A)  debit Cash, $16,000; credit Ticket Income, $16,000. 
B)  debit Unearned Revenue, $19,000; credit Ticket Income, $19,000. 
C)  debit Unearned Revenue, $16,000; credit Ticket Income, $16,000. 
D)  debit Ticket Income, $19,000; credit Unearned Ticket Revenue, $19,000. 
E)  debit Cash, $16,000; credit Unearned Ticket Revenue, $16,000.

Question 6

Using T accounts, record the required adjusting entries for the year ended December 31 for Manning Equipment. Manning Equipment uses the periodic inventory system.

Accepted Answer

The answer of Using T accounts, record the required adjusting...

Question 7

Rent received in advance by a landlord is called unearned revenue if the rental income will be earned in more than one fiscal period.

Accepted Answer

A) True 
 B)False

Question 8

Inventory shortages are debited to

Accepted Answer

A)  Merchandise Inventory 
B)  Cost of Goods Sold 
C)  Inventory Short/Over 
D)  Sales 
A)  Merchandise Inventory 
B)  Cost of Goods Sold 
C)  Inventory Short/Over 
D)  Sales

Question 9

Under a perpetual inventory system, a shortage in inventory requires an adjusting entry that

Accepted Answer

A)  debits Cost of Goods Sold and credits Accounts Payable. 
B)  debits Merchandise Inventory and credits Cost of Goods Sold. 
C)  debits Cost of Goods Sold and credits Merchandise Inventory. 
D)  debits Accounts Payable and credits Merchandise Inventory. 
E)  debits Accounts Payable and credits Cost of Goods Sold. 
A)  debits Cost of Goods Sold and credits Accounts Payable. 
B)  debits Merchandise Inventory and credits Cost of Goods Sold. 
C)  debits Cost of Goods Sold and credits Merchandise Inventory. 
D)  debits Accounts Payable and credits Merchandise Inventory. 
E)  debits Accounts Payable and credits Cost of Goods Sold.

Question 10

When goods are bought under the periodic inventory system, Merchandise Inventory is debited.

Accepted Answer

A) True 
 B)False

Question 11

Identify the account to be debited under the perpetual inventory system if the amount shown by the physical count of inventory is less than the computer record.

Accepted Answer

A)  Merchandise Inventory 
B)  Cost of Goods Sold 
C)  Purchase Returns 
D)  Miscellaneous Expense 
A)  Merchandise Inventory 
B)  Cost of Goods Sold 
C)  Purchase Returns 
D)  Miscellaneous Expense

Question 12

On the work sheet, the adjusted balance of Unearned Revenue appears in the

Accepted Answer

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

Question 13

Match the terms below with the correct definitions.
-An account debited when goods are bought for resale (using the periodic inventory system)

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 14

On the work sheet, the amount of the beginning merchandise inventory appears in the

Accepted Answer

A)  Balance Sheet Credit column. 
B)  Adjustments Credit column. 
C)  Balance Sheet Debit column. 
D)  Trial Balance Credit column. 
E)  Adjustments Debit column. 
A)  Balance Sheet Credit column. 
B)  Adjustments Credit column. 
C)  Balance Sheet Debit column. 
D)  Trial Balance Credit column. 
E)  Adjustments Debit column.

Question 15

Taking a physical count of the merchandise is optional under a periodic inventory system.

Accepted Answer

A) True 
 B)False

Question 16

Adjusting entries are journalized and posted in a noncomputerized system

Accepted Answer

A)  after the closing entries have been journalized. 
B)  after the trial balance is prepared but before the work sheet is completed. 
C)  after the worksheet is completed but before the financial statements are prepared. 
D)  after the adjustments are entered in the work sheet but before the work sheet is completed. 
E)  at none of these times. 
A)  after the closing entries have been journalized. 
B)  after the trial balance is prepared but before the work sheet is completed. 
C)  after the worksheet is completed but before the financial statements are prepared. 
D)  after the adjustments are entered in the work sheet but before the work sheet is completed. 
E)  at none of these times.

Question 17

In the Adjustments columns of the work sheet, the credit to the Merchandise Inventory account (using the periodic system) represents

Accepted Answer

A)  beginning inventory. 
B)  ending inventory. 
C)  the difference between the beginning and the ending inventory. 
D)  the balance owed to creditors for inventory. 
E)  net income. 
A)  beginning inventory. 
B)  ending inventory. 
C)  the difference between the beginning and the ending inventory. 
D)  the balance owed to creditors for inventory. 
E)  net income.

Question 18

Prepaid Insurance appears in which column of the worksheet and has the following normal balance:

Accepted Answer

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

Question 19

Match the terms below with the correct definitions.
-The debit 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 20

Interest Income would appear under which column of the worksheet

Accepted Answer

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

Cash received in advance for goods to be delivered or services to be provided later

The appropriate journal for recording the adjusting entry for Merchandise Inventory is

Cash appears in which worksheet column and has the following normal balance:

The adjusting entry for expired or used insurance will increase the Insurance Expense account.

Royal Theater credited Unearned Revenue of $35,000 for tickets sold for its season of four plays, which will be presented at the end of one fiscal period and the beginning of the next. As of December 31, the end of their fiscal period, Royal Theater had earned $16,000. The adjusting entry is

Using T accounts, record the required adjusting entries for the year ended December 31 for Manning Equipment. Manning Equipment uses the periodic inventory system.

Rent received in advance by a landlord is called unearned revenue if the rental income will be earned in more than one fiscal period.

Inventory shortages are debited to

Under a perpetual inventory system, a shortage in inventory requires an adjusting entry that

When goods are bought under the periodic inventory system, Merchandise Inventory is debited.

Identify the account to be debited under the perpetual inventory system if the amount shown by the physical count of inventory is less than the computer record.

On the work sheet, the adjusted balance of Unearned Revenue appears in the

Match the terms below with the correct definitions. -An account debited when goods are bought for resale (using the periodic inventory system)

On the work sheet, the amount of the beginning merchandise inventory appears in the

Taking a physical count of the merchandise is optional under a periodic inventory system.

Adjusting entries are journalized and posted in a noncomputerized system

In the Adjustments columns of the work sheet, the credit to the Merchandise Inventory account (using the periodic system) represents

Prepaid Insurance appears in which column of the worksheet and has the following normal balance:

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

Interest Income would appear under which column of the worksheet

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

Cash received in advance for goods to be delivered or services to be provided later

The appropriate journal for recording the adjusting entry for Merchandise Inventory is

Cash appears in which worksheet column and has the following normal balance:

The adjusting entry for expired or used insurance will increase the Insurance Expense account.

Royal Theater credited Unearned Revenue of $35,000 for tickets sold for its season of four plays, which will be presented at the end of one fiscal period and the beginning of the next. As of December 31, the end of their fiscal period, Royal Theater had earned $16,000. The adjusting entry is

Using T accounts, record the required adjusting entries for the year ended December 31 for Manning Equipment. Manning Equipment uses the periodic inventory system.

Rent received in advance by a landlord is called unearned revenue if the rental income will be earned in more than one fiscal period.

Inventory shortages are debited to

Under a perpetual inventory system, a shortage in inventory requires an adjusting entry that

When goods are bought under the periodic inventory system, Merchandise Inventory is debited.

Identify the account to be debited under the perpetual inventory system if the amount shown by the physical count of inventory is less than the computer record.

On the work sheet, the adjusted balance of Unearned Revenue appears in the

Match the terms below with the correct definitions. -An account debited when goods are bought for resale (using the periodic inventory system)

On the work sheet, the amount of the beginning merchandise inventory appears in the

Taking a physical count of the merchandise is optional under a periodic inventory system.

Adjusting entries are journalized and posted in a noncomputerized system

In the Adjustments columns of the work sheet, the credit to the Merchandise Inventory account (using the periodic system) represents

Prepaid Insurance appears in which column of the worksheet and has the following normal balance:

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

Interest Income would appear under which column of the worksheet

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