Reference no: EM131330393

Question 1
Bringing account balances up to date before preparing financial reports is called

A. posting.
B. adjusting.
C. journalizing.
D. analyzing.

Question 2
The entry to record the expiration of part of the prepaid rent will _______ at the end of the month.

A. decrease total assets and increase total expenses
B. decrease total assets and decrease total expenses
C. increase total assets and increase total expenses
D. increase total assets and decrease total expenses

Question 3
Income Summary

A. is a temporary account.
B. is a permanent account.
C. summarizes revenue and expenses and transfers the balance to Capital.
D. Both A and C

Question 4
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 5
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 6
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 7
As Prepaid Rent is used, the asset becomes a/an

A. liability.
B. expense.
C. contra-asset.
D. revenue.

Question 8
Closing entries are prepared

A. to clear all temporary accounts to zero.
B. to update the Capital balance.
C. at the end of the accounting period.
D. All of the above

Question 9
If the adjustment for Supplies used during the period wasn't 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 10
It is the end of the year but not the end of the pay period. How will this affect the balance sheet?

A. Assets will be increased.
B. Liabilities will be increased.
C. Owner's equity will be increased.
D. This has no effect on the period-end balance sheet.

Question 11
The income statement debit column of the worksheet showed the following expenses:

A.

B.

C.

D.

Question 12
If the balance of supplies at the start of the month was $900 and at the end of the month there was $450 on hand, the adjustment for Supplies would be

A. $450.
B. $550.
C. $350.
D. $900.

Question 13
The adjustment to record supplies used during the period would be which of the following?

A. Debit Supplies; credit Supplies Expense
B. Debit Supplies Expense; credit Cash
C. Debit Supplies Expense; credit Supplies
D. Debit Supplies; credit Cash

Question 14
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

Question 15
Assets that aren't expected to provide benefits for a number of accounting periods are called

A. current assets.
B. fixed assets.
C. long-term assets.
D. property, plant, and equipment.

Question 16
An account in which the balance isn't carried over from one accounting period to the next is called a _______ account.

A. permanent
B. real
C. temporary
D. zero

Question 17
Closing entries

A. need not be journalized since they appear on the worksheet.
B. need not be posted if the financial statements are prepared from the worksheet.
C. aren't needed if adjusting entries are prepared.
D. must be journalized and posted.

Question 18
Which of the following would cause total assets to decrease and total expense to increase?

A. Recording the depreciation of equipment
B. Recording the consumption of supplies
C. Recording the expiration of prepaid rent
D. All of the above

Question 19
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 20
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.