Question 1

The stock of goods that a business has on hand for sale to customers is called ___________________.

Accepted Answer

merchandis...

Question 2

If an account has a debit balance of $700 in the Trial Balance section of a worksheet and there is a debit entry of $200 in the Adjustments section,the account balance in the Adjusted Trial Balance section of the worksheet is a

Accepted Answer

A)   $900 debit.
B)   $500 debit.
C)   $500 credit.
D)   $900 credit.E) All of the above
F) A) and D)

Question 3

On June 1,2016,Mighty Fast Flooring issued a 10-month,9 percent note for $4,000.The note was recorded in the Notes Payable-Trade account.The adjusting entry on December 31 to record the interest accrued (owed) on the note is:

Accepted Answer

A)   a debit to Interest Expense for $210 and a credit to Interest Payable for $210.
B)   a debit to Interest Income for $210 and a credit to Interest Receivable for $210.
C)   a debit to Interest Expense for $360 and a credit to Interest Payable for $360.
D)   a debit to Interest Expense for $210 and a credit to Notes Payable-Trade for $210.E) B) and C)
F) None of the above

Question 4

The beginning merchandise inventory is removed from the books by closing the Merchandise Inventory account into the ____________________ account.

Accepted Answer

The answer of The beginning merchandise inventory is removed from...

Question 5

Which of the following statements is not correct?

Accepted Answer

A)   Uncollectible Accounts Expense is a contra asset account.
B)   The cost less the salvage value equals the depreciable base of a long-term asset.
C)   Each adjustment for an accrued expense includes a credit to a liability account.
D)   If a firm records prepaid expense items in an expense account when they pay for them,their adjustment at the end of the period to record the unexpired portion would include a debit to an asset account and a credit to an expense account.E) B) and D)
F) A) and B)

Question 6

The net income for an accounting period appears on the worksheet in the

Accepted Answer

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

Question 7

The procedure that most nearly attains the objective of matching revenues and expenses to specific accounting periods is called the ____________________ basis of accounting.

Accepted Answer

The answer of The procedure that most nearly attains the...

Question 8

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On October 1,2016,the firm paid a premium of $5,600 in cash for a 1-year insurance policy.On December 31,2016,coverage for a period of three months had expired.

Accepted Answer

Debit Insurance Expe...

Question 9

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.The beginning inventory for a merchandising business was $73,000,and the ending inventory is $66,000.

Accepted Answer

First entry: Debit Income Summ...

Question 10

On April 1,2016,a firm accepted a 3-month,10 percent note for $1,800 from a customer with an overdue balance.The accrued interest recorded for this note for the year ended May 31,2016,is

Accepted Answer

A)   $30.
B)   $60.
C)   $150.
D)   $180.E) A) and B)
F) A) and C)

Question 11

Rose Bush Nursery purchased a delivery truck for $27,000.The truck is expected to have a useful life of 4 years and a residual value of $1,080.If the truck was purchased on June 1,2016,what is the amount of depreciation expense for the truck for the year ended December 31,2016?

Accepted Answer

A)   $3,780
B)   $1,080
C)   $6,480
D)   $3,240E) A) and C)
F) None of the above

Question 12

On January 2,2016,a firm purchased equipment for $8,500.Depreciation expense for the year ending December 31,2016,given the straight-line method,a 5-year useful life,and a salvage value of $1,500,is

Accepted Answer

A)   $1,500.
B)   $1,700.
C)   $1,200.
D)   $1,400.E) All of the above
F) A) and B)

Question 13

Merchandise inventory is adjusted in two steps because both the beginning and ending inventory figures are needed to prepare the income statement.

Accepted Answer

A) True 
 B)False

Question 14

To determine the amount of yearly depreciation,the ____________________ is divided by the number of years in the asset's useful life.

Accepted Answer

The answer of To determine the amount of yearly depreciation,the...

Question 15

Complete the table below in accordance with the rules that must be followed to combine amounts in the Adjusted Trial Balance Section of the worksheet.Enter the new balance and whether it is entered as a debit or a credit.

Accepted Answer

The answer of Complete the table below in accordance with...

Question 16

On May 1,2016,a firm purchased a 1-year insurance policy for $3,600 and paid the full premium in advance.The insurance expense associated with this policy for the year ending December 31,2016,is

Accepted Answer

A)   $3,600.
B)   $2,400.
C)   $2,100.
D)   $1,200.E) A) and B)
F) All of the above

Question 17

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On December 31,2016,the firm owed wages totaling $3,900.

Accepted Answer

Debit Wages Expense,...

Question 18

The adjustment for merchandise inventory is made in ____________________ steps.

Accepted Answer

The answer of The adjustment for merchandise inventory is made...

Question 19

If an account has a debit balance of $700 in the Trial Balance section of a worksheet and there is a credit entry of $200 in the Adjustments section,the account balance in the Adjusted Trial Balance section of the worksheet is a

Accepted Answer

A)   $900 debit.
B)   $500 debit.
C)   $500 credit.
D)   $900 credit.E) A) and D)
F) C) and D)

Question 20

Under the accrual basis of accounting,only income that has been earned appears on the income statement.

Accepted Answer

A) True 
 B)False

Exam 12: Accruals, Deferrals, and the Worksheet

To determine the amount of yearly depreciation,the ____________________ is divided by the number of years in the asset's useful life.

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The adjustment for merchandise inventory is made in ____________________ steps.

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On June 1,2016,Mighty Fast Flooring issued a 10-month,9 percent note for $4,000.The note was recorded in the Notes Payable-Trade account.The adjusting entry on December 31 to record the interest accrued (owed) on the note is:

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

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The procedure that most nearly attains the objective of matching revenues and expenses to specific accounting periods is called the ____________________ basis of accounting.

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Rose Bush Nursery purchased a delivery truck for $27,000.The truck is expected to have a useful life of 4 years and a residual value of $1,080.If the truck was purchased on June 1,2016,what is the amount of depreciation expense for the truck for the year ended December 31,2016?

Correct AnswerverifiedShow Answer

If an account has a debit balance of $700 in the Trial Balance section of a worksheet and there is a debit entry of $200 in the Adjustments section,the account balance in the Adjusted Trial Balance section of the worksheet is a

Correct AnswerverifiedShow Answer

The beginning merchandise inventory is removed from the books by closing the Merchandise Inventory account into the ____________________ account.

Correct AnswerverifiedShow Answer

Under the accrual basis of accounting,only income that has been earned appears on the income statement.

Correct AnswerverifiedShow Answer

Merchandise inventory is adjusted in two steps because both the beginning and ending inventory figures are needed to prepare the income statement.

Correct AnswerverifiedShow Answer

The stock of goods that a business has on hand for sale to customers is called ___________________.

Correct Answerverifiedmerchandis...View AnswerShow Answer

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.The beginning inventory for a merchandising business was $73,000,and the ending inventory is $66,000.

Correct AnswerverifiedFirst entry: Debit Income Summ...View AnswerShow Answer

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On October 1,2016,the firm paid a premium of $5,600 in cash for a 1-year insurance policy.On December 31,2016,coverage for a period of three months had expired.

Correct AnswerverifiedDebit Insurance Expe...View AnswerShow Answer

The net income for an accounting period appears on the worksheet in the

Correct AnswerverifiedShow Answer

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On December 31,2016,the firm owed wages totaling $3,900.

Correct AnswerverifiedDebit Wages Expense,...View AnswerShow Answer

On May 1,2016,a firm purchased a 1-year insurance policy for $3,600 and paid the full premium in advance.The insurance expense associated with this policy for the year ending December 31,2016,is

Correct AnswerverifiedShow Answer

Complete the table below in accordance with the rules that must be followed to combine amounts in the Adjusted Trial Balance Section of the worksheet.Enter the new balance and whether it is entered as a debit or a credit.

Correct AnswerverifiedShow Answer

If an account has a debit balance of $700 in the Trial Balance section of a worksheet and there is a credit entry of $200 in the Adjustments section,the account balance in the Adjusted Trial Balance section of the worksheet is a

Correct AnswerverifiedShow Answer

On January 2,2016,a firm purchased equipment for $8,500.Depreciation expense for the year ending December 31,2016,given the straight-line method,a 5-year useful life,and a salvage value of $1,500,is

Correct AnswerverifiedShow Answer

On April 1,2016,a firm accepted a 3-month,10 percent note for $1,800 from a customer with an overdue balance.The accrued interest recorded for this note for the year ended May 31,2016,is

Correct AnswerverifiedShow Answer

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merchandis...
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First entry: Debit Income Summ...
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Debit Insurance Expe...
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Debit Wages Expense,...
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