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