Question 1

If long-term assets are not adjusted, expenses on the income statement

Accepted Answer

A)   will be overstated.
B)   will be understated.
C)   will not be affected.
D)   may be either overstated or understated.E) C) and D)
F) A) and B)

Question 2

The adjusting entry to account for the expiration of prepaid advertising consists of

Accepted Answer

A)   a debit to Prepaid Advertising and a credit to Advertising Expense.
B)   a debit to Advertising Expense and a credit to Accumulated Depreciation.
C)   a debit to Prepaid Advertising and a credit to Accumulated Depreciation.
D)   a debit to Advertising Expense and a credit to Prepaid Advertising.E) None of the above
F) B) and C)

Question 3

Read the description of following adjustments that are required at the end of the accounting period for Paulo Consulting Services. Record the necessary adjusting entries on page 2 of a general journal. Omit the descriptions.
A. Equipment purchased on January 1, 2013, for $24,000 has an estimated useful life of 5 years with no salvage value. Depreciation is computed using the straight-line method.
B. Signed a 3-month contract for $4,500 of prepaid advertising on January 1, 2013.
C. Prepaid rent for the year on January 1, 2013. Rent expired during the month of January 2013, $1,600.
D. Purchased supplies for $2,000 on January 1, 2013. Inventory of supplies was $1,200 on January 31, 2013.

Accepted Answer

The answer of Read the description of following adjustments that...

Question 4

On a worksheet, the adjusted balance of Depreciation Expense is extended from the Adjusted Trial Balance Debit column to the ____________________ Debit column.

Accepted Answer

The answer of On a worksheet, the adjusted balance of...

Question 5

On a worksheet, the adjusted balance of a contra asset account would be extended to

Accepted Answer

A)   the Balance Sheet Debit column.
B)   the Balance Sheet Credit column.
C)   the Income Statement Debit column.
D)   the Income Statement Credit column.E) A) and D)
F) C) and D)

Question 6

Prepaid expenses, such as prepaid rent and prepaid insurance, represent assets for a business until they are used.

Accepted Answer

A) True 
 B)False

Question 7

A consecutive, twelve-month accounting period is called a(n)

Accepted Answer

A)   accrual year
B)   fiscal year
C)   accounting year
D)   adjusted yearE) A) and D)
F) None of the above

Question 8

On a worksheet, the adjusted balance of the Accumulated Depreciation account is extended to:

Accepted Answer

A)   the Income Statement Debit column.
B)   the Income Statement Credit column.
C)   the Balance Sheet Debit column.
D)   the Balance Sheet Credit column.E) None of the above
F) A) and D)

Question 9

On a worksheet, the adjusted balance of the Supplies account is extended to:

Accepted Answer

A)   the Income Statement Debit column.
B)   the Income Statement Credit column.
C)   the Balance Sheet Debit column.
D)   the Balance Sheet Credit column.E) A) and C)
F) B) and D)

Question 10

Letters are used to label the debit and credit parts of an adjustment on the worksheet.

Accepted Answer

A) True 
 B)False

Question 11

On a worksheet, the adjusted balance of the revenue account Fees Income would be extended to:

Accepted Answer

A)   the Income Statement Debit column.
B)   the Balance Sheet Credit column.
C)   the Balance Sheet Debit column.
D)   the Income Statement Credit column.E) A) and B)
F) None of the above

Question 12

MacGyver Company bought equipment on January 3, 2013, for $34,000. At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. Using the straight-line method, the amount of one year's depreciation is

Accepted Answer

A)   $880
B)   $5,520
C)   $460
D)   $5,667E) A) and C)
F) All of the above

Question 13

When the ____________________ method of depreciation is used, an equal amount of depreciation is charged to each accounting period during the asset's useful life.

Accepted Answer

The answer of When the ____________________ method of depreciation is...

Question 14

Equipment costing $13,500 with an estimated salvage value of $1,020 and an estimated life of 4 years was purchased on November 1, 2013. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2013?

Accepted Answer

A)   $260
B)   $520
C)   $3,120
D)   $1,020E) All of the above
F) A) and C)

Question 15

An accumulated depreciation account is often referred to as a(n) ____________________ asset account.

Accepted Answer

The answer of An accumulated depreciation account is often referred...

Question 16

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance.

Accepted Answer

The answer of For each of the accounts listed below,...

Question 17

The adjusting entry to account for the expiration of prepaid insurance consists of

Accepted Answer

A)   a debit to Insurance Expense and a credit to Prepaid Insurance.
B)   a debit to Insurance Expense and a credit to Accumulated Depreciation.
C)   a debit to Prepaid Insurance and a credit to Accumulated Depreciation.
D)   a debit to Accumulated Depreciation and a credit to Prepaid Insurance.E) B) and D)
F) None of the above

Question 18

The partial worksheet for the Lorado Insurance Agency for the month ended October 31, 2013, is shown below. Using this data, prepare an income statement, a statement of owner's equity, and a balance sheet. The owner made no additional investments during the month.

Accepted Answer

The answer of The partial worksheet for the Lorado Insurance...

Question 19

A total of $3,200 in supplies was purchased during the year. At the end of the year $700 of the supplies were left. The adjusting entry needed at the end of the year is:

Accepted Answer

A)   debit Supplies $2,500; credit Supplies Expense $2,500
B)   debit Supplies Expense $3,200; credit Supplies $3,200
C)   debit Supplies Expense $700; credit Supplies $700
D)   debit Supplies Expense $2,500; credit Supplies $2,500E) A) and B)
F) A) and C)

Question 20

On a worksheet, a net loss is

Accepted Answer

A)   recorded in the Income Statement Debit column.
B)   recorded in the Balance Sheet Debit column.
C)   recorded in the Balance Sheet Credit column.
D)   not recorded.E) B) and C)
F) B) and D)

Exam 5: Adjustments and the Worksheet

When the ____________________ method of depreciation is used, an equal amount of depreciation is charged to each accounting period during the asset's useful life.

Correct Answer
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On a worksheet, the adjusted balance of Depreciation Expense is extended from the Adjusted Trial Balance Debit column to the ____________________ Debit column.

Correct Answer
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Correct Answer
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Prepaid expenses, such as prepaid rent and prepaid insurance, represent assets for a business until they are used.

Correct Answer
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The adjusting entry to account for the expiration of prepaid insurance consists of

Correct Answer
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On a worksheet, the adjusted balance of a contra asset account would be extended to

Correct Answer
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The partial worksheet for the Lorado Insurance Agency for the month ended October 31, 2013, is shown below. Using this data, prepare an income statement, a statement of owner's equity, and a balance sheet. The owner made no additional investments during the month.

Correct Answer
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An accumulated depreciation account is often referred to as a(n) ____________________ asset account.

Correct Answer
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On a worksheet, the adjusted balance of the revenue account Fees Income would be extended to:

Correct Answer
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A total of $3,200 in supplies was purchased during the year. At the end of the year $700 of the supplies were left. The adjusting entry needed at the end of the year is:

Correct Answer
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On a worksheet, the adjusted balance of the Accumulated Depreciation account is extended to:

Correct Answer
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On a worksheet, a net loss is

Correct Answer
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Letters are used to label the debit and credit parts of an adjustment on the worksheet.

Correct Answer
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The adjusting entry to account for the expiration of prepaid advertising consists of

Correct Answer
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On a worksheet, the adjusted balance of the Supplies account is extended to:

Correct Answer
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A consecutive, twelve-month accounting period is called a(n)

Correct Answer
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For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance.

Correct Answer
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MacGyver Company bought equipment on January 3, 2013, for $34,000. At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. Using the straight-line method, the amount of one year's depreciation is

Correct Answer
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Equipment costing $13,500 with an estimated salvage value of $1,020 and an estimated life of 4 years was purchased on November 1, 2013. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2013?

Correct Answer
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If long-term assets are not adjusted, expenses on the income statement

Correct Answer
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Exam 5: Adjustments and the Worksheet

When the ____________________ method of depreciation is used, an equal amount of depreciation is charged to each accounting period during the asset's useful life.

Correct AnswerverifiedShow Answer

On a worksheet, the adjusted balance of Depreciation Expense is extended from the Adjusted Trial Balance Debit column to the ____________________ Debit column.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Prepaid expenses, such as prepaid rent and prepaid insurance, represent assets for a business until they are used.

Correct AnswerverifiedShow Answer

The adjusting entry to account for the expiration of prepaid insurance consists of

Correct AnswerverifiedShow Answer

On a worksheet, the adjusted balance of a contra asset account would be extended to

Correct AnswerverifiedShow Answer

The partial worksheet for the Lorado Insurance Agency for the month ended October 31, 2013, is shown below. Using this data, prepare an income statement, a statement of owner's equity, and a balance sheet. The owner made no additional investments during the month.

Correct AnswerverifiedShow Answer

An accumulated depreciation account is often referred to as a(n) ____________________ asset account.

Correct AnswerverifiedShow Answer

On a worksheet, the adjusted balance of the revenue account Fees Income would be extended to:

Correct AnswerverifiedShow Answer

A total of $3,200 in supplies was purchased during the year. At the end of the year $700 of the supplies were left. The adjusting entry needed at the end of the year is:

Correct AnswerverifiedShow Answer

On a worksheet, the adjusted balance of the Accumulated Depreciation account is extended to:

Correct AnswerverifiedShow Answer

On a worksheet, a net loss is

Correct AnswerverifiedShow Answer

Letters are used to label the debit and credit parts of an adjustment on the worksheet.

Correct AnswerverifiedShow Answer

The adjusting entry to account for the expiration of prepaid advertising consists of

Correct AnswerverifiedShow Answer

On a worksheet, the adjusted balance of the Supplies account is extended to:

Correct AnswerverifiedShow Answer

A consecutive, twelve-month accounting period is called a(n)

Correct AnswerverifiedShow Answer

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance.

Correct AnswerverifiedShow Answer

MacGyver Company bought equipment on January 3, 2013, for $34,000. At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. Using the straight-line method, the amount of one year's depreciation is

Correct AnswerverifiedShow Answer

Equipment costing $13,500 with an estimated salvage value of $1,020 and an estimated life of 4 years was purchased on November 1, 2013. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2013?

Correct AnswerverifiedShow Answer

If long-term assets are not adjusted, expenses on the income statement

Correct AnswerverifiedShow Answer

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