Have an account?
Skip to Content
Build your own quiz
Suggestions for you
24 questions
Show Answers
See Preview
- 1. Multiple Choice
An adjustment for Prepaid Rent would indicate:
the amount originally paid.
the amount expired.
the amount on hand.
the amount of the trial balance.
- 2. Multiple Choice
If the balance of supplies at the start of the month was $900 and at the end of the month you had $350 on hand, the adjustment for Supplies would be:
$450.
$550.
$350.
$900.
- 3. Multiple Choice
Prepaid Rent is considered to be a(n):
liability.
asset.
contra-asset.
revenue.
- 4. Multiple Choice
As Prepaid Rent is used, the asset becomes a(n):
liability
expense
contra-asset
revenue
- 5. Multiple Choice
When historical cost is used in the accounting records, the book value of the asset is:
the original cost.
the market value.
original cost less accumulated depreciation.
closed out.
- 6. Multiple Choice
The cost of an asset less accumulated depreciation equals:
residual value.
book value.
depreciation expense.
None of these answers are correct.
- 7. Multiple Choice
The adjustment that is made to allocate the cost of a building over its expected life is called:
depreciation
residual value.
accumulated depreciation.
None of these answers are correct.
- 8. Multiple Choice
Accumulated Depreciation is found on which of the following financial statements?
Balance sheet
Income statement
Statement of Owner's Equity
All of these answers are correct.
- 9. Multiple Choice
Depreciation Expense would be found on which of the following financial statements?
Balance sheet
Income statement
Statement of Owner's Equity
Depreciation report
- 10. Multiple Choice
To record accrued salaries, you would:
debit Cash and credit Salaries Payable.
debit Salaries Payable and credit Salaries Expense.
debit Salaries Expense and credit Salaries Payable.
None of these answers are correct.
- 11. Multiple Choice
What type of account is Salaries Payable?
Asset
Expense
Liability
Owner's equity
- 12. Multiple Choice
Unlimited Doors showed supplies available during the year of $1,900. A count of the supplies on hand as of October 31 is $800. The adjusting entry for Store Supplies would include:
a debit to Store Supplies Expense for $800.
a credit to Store Supplies Expense for $800.
a debit to Store Supplies for $1,100.
a debit to Store Supplies Expense for $1,100.
- 13. Multiple Choice
Alcatraz Boat Tours showed store supplies available during the year, $550. If at the end of the month supplies used were $200, the adjusting entry would include a:
debit to Supplies Expense for $200.
debit to Supplies Expense for $350.
credit to Supplies Expense for $200.
credit to Supplies Expense for $350.
- 14. Multiple Choice
Logan's Snowboards estimated depreciation for office equipment at $250. The adjusting entry to record the depreciation would include:
a debit to Accumulated Depreciation for $250.
a credit to Depreciation Expense for $250.
a credit to Accumulated Depreciation for $250.
a credit to Office Equipment for $250.
- 15. Multiple Choice
Sarah's Spices' accrued wages are $1,800. Which of the following is the required adjusting entry?
Debit Salaries Expense, $1,800; credit Salaries Payable, $1,800
Credit Salaries Expense, $1,800; debit Salaries Payable, $1,800
Debit Cash, $1,800; credit Salaries Expense, $1,800
Debit Salaries Payable, $1,800; credit Cash, $1,800
- 16. Multiple Choice
The adjustment for wages earned, but not yet paid is:
Debit Wages Expense, credit Cash.
Debit Wages Payable, credit Wages Expense.
Debit Wages Payable, credit Cash.
Debit Wages Expense, credit Wages Payable.
- 17. Multiple Choice
Adjusting the supplies account will:
decrease the total assets and increase the total expenses.
decrease the total assets and decrease the total expenses.
increase the total assets and increase the total expenses.
increase the total assets and decrease the total expenses.
- 18. Multiple Choice
An important function of the worksheet is for the accountant to find and correct errors before the financial statements are prepared.
True
False
- 19. Multiple Choice
Adjustments are necessary to update account balances for internal transactions.
True
False
- 20. Multiple Choice
Accumulated Depreciation is a contra-asset account found on the balance sheet.
True
False
- 21. Multiple Choice
The amount of supplies used during the period would be shown in the adjustment columns of the worksheet.
True
False
- 22. Multiple Choice
Revenue is recorded when earned, and expenses are recorded only when paid.
True
False
- 23. Multiple Choice
Prepaid Rent is an asset with a normal balance of a debit.
True
False
- 24. Multiple Choice
Depreciation Expense is debited when recording the depreciation for the period.
True
False
- Answer choicesTagsAnswer choicesTags