Quiz 3&4
Depreciation Expense would be reported on the post-closing trial balance. T/F
F
Office supplies would be reported on the Statement of Owner's Equity. T/F
F
Rent expense would be reported on the post-closing trial balance. T/F
F
The accounts receivable account is closed at the end of the accounting period. T/F
F
Accumulated Depreciation - Machinery would be reported on the post-closing trial balance. T/F
T
Insurance expense is closed at the end of the accounting period. T/F
T
Net loss would be reported on the Statement of Owner's Equity. T/F
T
How would prepaid insurance be classified on the balance sheet? a. current asset b. fixed asset c. current liability d. long term liability
a
On which financial statement is supplies expense presented? a. Income Statement b. Statement of Owner's Equity c. Balance Sheet d. Statement of Cash Flows
a
How would accumulated depreciation be classified on the balance sheet? a. current asset b. fixed asset c. current liability d. long term liability
b
If the adjusting entry for supplies used is not recorded at the end of a year, which of the following is true? a. end of year expenses will be overstated b. end of year expenses will be understated c. assets will be understated d. accumulated depreciation will be understated
b
If the unearned rent account has a balance of $9,000, representing receipt of three months' rent beginning on October 1, the rent revenue for October is a. $9,000 b. $3,000 c. $6,000 d. $0
b
The accounting principle that requires the matching of revenues and expenses is called the: a. business entity concept b. matching principle c. historical cost concept d. periodicity concept
b
The adjusting entry to record the cost of supplies used during the period requires a: a. debit to supplies and credit to supplies expense b. debit to supplies expense and credit to supplies c. debit to depreciation expense and credit to supplies d. debit to supplies and credit to depreciation expense
b
To adjust for tax expense accrued at the end of the year requires a: a. debit to taxes payable and a credit to tax expense b. debit to tax expense and a credit to taxes payable c. debit to tax expense and a credit to cash d. debit to taxes payable and a credit to cash
b
When the drawing account is closed into the capital account, the balance in the capital account is a. increased b. decreased c. not affected
b
Accumulated depreciation accounts that are "offset against" fixed asset accounts are: a. liabilities b. other assets c. contra-assets d. capital
c
Adjusting for depreciation of equipment at the end of the period requires a: a. debit to depreciation expense and a credit to equipment b. debit to depreciation expense and a credit to accumulated depreciation-building c. debit to depreciation expense and a credit to accumulated depreciation-equipment d. debit to accumulated depreciation-equipment and a credit to depreciation expense
c
How would a note payable due in 90 days be classified on the balance sheet? a. current asset b. fixed asset c. current liability d. long term liability
c
If the prepaid insurance account has a debit balance of $17,600 at the end of the month, before adjustment, and if the unexpired insurance at the end of the month was $10,500, the amount of prepaid insurance that would appear on the balance sheet, after adjustment, is: a. $17,600 b. $7,100 c. $10,500 d. none of the above
c
On which financial statement is unearned revenue presented? a. Income Statement b. Statement of Owner's Equity c. Balance Sheet d. Statement of Cash Flows
c
The net income reported on the income statement is $65,000. However, the accountant forgot to make an adjusting entry to record the expired insurance of $10,000. Net income, as corrected, is: a. $75,000 b. $65,000 c. $55,000 d. none of the above
c
The net income reported on the income statement is $65,000. However, the accountant forgot to make the adjusting entry to record depreciation expense of $15,000. Net income, as corrected, is: a. $65,000 b. $80,000 c. $50,000 d. none of the above
c
A ______ is required to close the drawing account. debit/credit
credit
A ______ is required to close the supplies expense account. debit/credit
credit
Adjusting for salaries accrued at the end of the period requires a: a. debit to wages payable and a debit to wage expense b. debit to wage expense and a credit to cash c. debit to salaries payable and a credit to salaries expense d. debit to salaries expense and a credit to salaries payable
d
If the balance in the supplies account on January 1 is $20,500, supplies purchased during the year were $17,500, and the supplies on hand at December 31 were $8,500, the amount for the appropriate adjusting entry at December 31 is: a. $11,500 b. $9,000 c. $14,000 d. $29,500
d
The expense associated with the decrease in economic usefulness of a fixed asset with the passage of time is: a. supplies b. accrued goodwill c. amortization d. depreciation
d
To adjust for fees collected in advance and now earned requires a: a. debit to cash and a credit to accounts receivable b. debit to accounts receivable and a credit to fees earned c. debit to fees earned and a credit to unearned revenue d. debit to unearned revenue and a credit to fees earned
d
Total assets on the balance sheet are reported as $100,000. However, the accountant forgot to make the adjusting entry to record depreciation expense of $15,000. Total assets, as corrected, is: a. $100,000 b. $115,000 c. $130,000 d. $85,000
d
