At the start of this year 18
months’ rent was paid. At the year’s end, how will this affect the balance
sheet?
A.
Assets will be decreased.
B.
Liabilities will be increased.
C.
Owner’s equity will be increased.
D. This
has no effect on the period end balance sheet.
Question 2 of 40
0.0/ 2.5
Points
If the Supplies account is not adjusted
__________.
A.
assets will be overstated and expenses will be understated
B.
assets will be overstated and expenses will be overstated
C.
assets will be understated and expenses will be overstated
D.
assets will be understated and expenses will be understated
Question 3 of 40
2.5/ 2.5
Points
The adjustment to record supplies
used during the period would be __________.
A. debit
Supplies; credit Supplies Expense
B. debit
Supplies Expense; credit Cash
C. debit
Supplies Expense; credit Supplies
D. debit
Supplies; credit Cash
Question 4 of 40
2.5/ 2.5
Points
It’s the end of the accounting
period and no electric bill has been received (but the expense has been
incurred.; you should record an entry that __________.
A.
increases the total assets and increases the total expenses
B.
decreases the total assets and increases the total expenses
C.
increases the total liabilities and increases the total expenses
D.
decreases the total liabilities and increases the total expenses
Question 5 of 40
2.5/ 2.5
Points
When historical cost is used to
record equipment, it would appear as the __________.
A.
original cost on the balance sheet
B.
residual value on the income statement
C.
residual value on the balance sheet
D.
original cost on the income statement
Question 6 of 40
2.5/ 2.5
Points
The capital balance amount shown
in the balance sheet column of the worksheet represents __________.
A. the
beginning capital plus net income
B. the
beginning capital plus net income less withdrawal
C. the
beginning capital less withdrawals
D. the
beginning capital plus any investments to capital that occurred during the
period
Question 7 of 40
2.5/ 2.5
Points
Which of the following would cause
a liability to be credited and an expense to be debited?
A.
recording the adjustment for the expiration of rent
B.
recording the depreciation of equipment
C.
recording the accrual of salaries incurred
D.
purchasing equipment
Question 8 of 40
2.5/ 2.5
Points
The adjusted trial balance columns
__________.
A. help
to ensure the ledger is still in balance
B. help
to identify any errors that may have been made during adjustment
C. show
updated account balances to aid in preparation of the financial statements
D. All
of the above answers are correct.
Question 9 of 40
2.5/ 2.5
Points
The entry to record the expiration
of part of the prepaid rent will __________.
A.
decrease total assets and increase total expenses at the end of the month
B.
decrease total assets and decrease total expenses at the end of the month
C.
increase total assets and increase total expenses at the end of the month
D.
increase total assets and decrease total expenses at the end of the month
Question 10 of 40
2.5/ 2.5
Points
If Prepaid Rent for the period is
not adjusted __________.
A.
assets will be overstated and expenses will be overstated
B.
assets will be overstated and expenses will be understated
C.
assets will be understated and expenses will be overstated
D.
assets will be understated and expenses will be understated
Question 11 of 40
2.5/ 2.5
Points
An adjustment for Prepaid Rent
would indicate __________.
A. the
amount originally paid
B. the
amount expired
C. the
amount on hand
D. the
amount of the trial balance
Question 12 of 40
2.5/ 2.5
Points
As Prepaid Rent is used, the asset
becomes a(n. __________.
A.
liability
B.
expense
C.
contra-asset
D.
revenue
Question 13 of 40
2.5/ 2.5
Points
The depreciation of equipment will
require an adjustment that results in __________.
A. total
assets increasing and total expenses increasing
B. total
assets increasing and total expenses decreasing
C. total
assets and expenses decreasing
D. total
assets decreasing and total expenses increasing
Question 14 of 40
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Points
The order of the steps to prepare
the worksheet are __________.
A.
prepare the trial balance, complete adjustments, prepare the adjusted trial
balance, extend the respective totals to the Income Statement and Balance
Sheet columns
B.
complete the adjustments, prepare the adjusted trial balance, prepare the
trial balance, extend the respective totals to the Income Statement and
Balance Sheet columns
C.
extend the totals to the Income Statement and Balance Sheet columns,
prepare the trial balance, complete the adjustments, prepare the adjusted
trial balance
D. prepare
the adjusted trial balance, complete the adjustments, prepare the trial
balance, extend the respective totals to the Income Statement and Balance
Sheet columns
Question 15 of 40
2.5/ 2.5
Points
Not recording the Prepaid Rent
used causes __________.
A.
assets to be too high
B.
assets to be too low
C.
expenses to be too high
D.
revenue to be too high
Question 16 of 40
2.5/ 2.5
Points
The cost of an asset less
accumulated depreciation equals __________.
A.
residual value
B. book
value
C.
depreciation expense
D. None
of the above answers are correct.
Question 17 of 40
2.5/ 2.5
Points
If the adjustment for Supplies
used during the period was not made __________.
A.
expenses would be too low
B.
assets would be too low
C.
expenses would be too high
D.
revenue would be too high
Question 18 of 40
2.5/ 2.5
Points
Which of the following would cause
a contra-asset to be credited and an expense debited?
A.
recording an accrued expense
B.
recording the consumption of supplies
C.
recording the building depreciation
D. All
of the above would have that effect.
Question 19 of 40
2.5/ 2.5
Points
Bringing account balances up to
date before preparing financial reports is called __________.
A.
posting
B.
adjusting
C.
journalizing
D.
analyzing
Question 20 of 40
2.5/ 2.5
Points
If the balance of supplies at the
start of the month was $900 and at the end of the month you had $450 on hand,
the adjustment for Supplies would be __________.
A. $450
B. $550
C. $350
D. $900
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