Question 1

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.E) C) and D)
F) B) and D)

Question 2

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.E) A) and C)
F) A) and B)

Question 3

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.F) All of the above
G) A) and B)

Question 4

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 accountF) Accounting cycleG) Mixed accountsH) AdjustingI) DepreciationJ) A) and H)
K) B) and H)

Question 5

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.F) A) and E)
G) A) and B)

Question 6

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.F) All of the above
G) A) and B)

Question 7

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.F) A) and C)
G) B) and C)

Question 8

A fiscal period must begin on January 1.

Accepted Answer

A) True 
 B)False

Question 9

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)   $7,771.43E) A) and D)
F) B) and C)

Question 10

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.E) B) and D)
F) A) and D)

Question 11

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 DebitF) B) and C)
G) B) and E)

Question 12

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 13

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.E) A) and B)
F) B) and C)

Question 14

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.E) A) and C)
F) C) and D)

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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.E) None of the above
F) A) and B)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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.F) C) and D)
G) B) and D)

Question 19

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)   revenueE) None of the above
F) All of the above

Question 20

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

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Exam 4: Adjusting Entries and the Work Sheet

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

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

Correct Answer
verified

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:

Correct Answer
verified

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

Correct Answer
verified

The term, accrued wages, means that

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified
The matching principle requires that rec...
View Answer

Correct Answer
verified
1.)

2.)
...
View Answer

A fiscal period must begin on January 1.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The adjusting entry to record depreciation would involve a

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
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The Income Statement Debit column of the work sheet contains

Correct Answer
verified

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

Correct Answer
verified

Exam 4: Adjusting Entries and the Work Sheet

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The term, accrued wages, means that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedThe matching principle requires that rec...View AnswerShow Answer

Correct Answerverified1.) 2.)...View AnswerShow Answer

A fiscal period must begin on January 1.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The adjusting entry to record depreciation would involve a

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Income Statement Debit column of the work sheet contains

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
The matching principle requires that rec...
View Answer

Correct Answer
verified
1.)

2.)
...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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