Question

Which of the following is not to be extended to the statement of financial position columns of the worksheet?               

Select one:

a. Accumulated Depreciation         

b. Unearned Income

c. Expired insurance premium

d. Unused Supplies

Which of the following is not an element in the computation of estimated depreciation expense?

Select one:

a. unpaid balance of the acquisition cost

b. Acquisition cost                               

c. Estimated useful life      

d. Scrap value at the end of the useful life

Using the liability method, the adjustment for that portion of revenue received in advance which now has been earned is to debit        

Select one:

a. Unearned Revenues and credit Service Revenues           

b. Unearned Revenues and credit Cash     

c. Service Revenues and credit Unearned Revenues                           

d. Cash and credit Unearned Revenues     

Which of the following transaction will not result in the recognition of an expense?        

Select one:

a. Interest accrued on loan extended to an employee

b. Expiration of prepaid insurance

c. Use of machinery during the period       

d. Interest accrued on a bank loan                       

The statement of changes in equity would not show

Select one:

a. The owner's capital balance at the end of the period

b. Revenues and expenses             

c. The owner's withdrawals during the period

d. The owner's initial capital balance

Worksheet are prepared because they

Select one:

a. Constitute a permanent record of all adjusting entries made for the period        

b. Are necessary for the preparation of financial statements

c. Are required by the generally accepted accounting principles

d. Aid in the preparation of the financial statements, adjusting entries and closing entries

Which of the following statements is correct?

Select one:

a. The difference between the debit and credit total of an account is said to be the                                                              account balance.              

b. When the debit total and the credit total of an account are not equal, the account is said to be an closed account.          

c. When the debit total and the credit total of an account are equal, the account is                                                               said to be an open account.

d. If the debit total of an account is greater than its credit total, the account is said to have a negative balance (deficit).      

Accrued revenues should be reported as

Select one:

a. Asset on the balance sheet        

b. Liabilities on the balance sheet

c. Expenses on the income statement

d. Revenues on the income statement

The owner's capital account is found on the

Select one:

a. Trial balance credit column, adjusted trial balance credit column and balance sheet credit column of a worksheet

b. Trial balance credit column and income statement debit column of a worksheet

c. .Trial balance debit column, adjustments debit column, adjusted trial balance credit        column, and income statement credit column of a worksheet.  

d. Trial balance credit column, adjustments credit column, adjusted trial balance                                                    credit column, and balance sheet credit column of a worksheet     

Accrued expenses should be recorded

Select one:

a. By a seller when a service is rendered before payment of cash

b. When an expense is incurred before cash is paid             

c. When an expense is incurred as cash is paid.      

d. By a buyer when a service is received on payment of cash

An end -of-period adjustment involves

Select one:

a. A recognition of the extra cash flows related to the year-end delivery of goods                                                 and services

b. An exchange of resources between two departments in an organization             

c. An adjustment that results in revenues or expenses being reported in a different                                                            time period from the associated cash flows

d. A change in an account balance that is neither an accrual nor a deferral

The initial sum of the balance sheet credit column on the worksheet is greater than the initial sum of the balance sheet debit column. Which of the following is true?                          

Select one:

a. All of the above.              

b. A loss occurred during the period.

c. An error was made on the worksheet.

d. The sum of the income statement credit column must exceed the sum of the                                                    income statement debit column.   

Answer 1

Answer: