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ALLEN WRENCH
DAVIS CUP
BARN YARD
MOTHER THERESA
SISTER THERESA
100
The balance sheet reports a. assets. b. revenue. c. expenses. d. net income.
What is: a. assets.
100
The fourth pair of columns on a 10-column work sheet prepared at the end of the period would be the a. Income Statement columns. b. Adjustments columns. c. Balance Sheet columns. d. Adjusted Trial Balance columns.
What is: a. Income Statement columns.
100
The third pair of columns on a 10-column work sheet prepared at the end of the period would be the a. Income Statement columns. b. Adjustments columns. c. Balance Sheet columns. d. Adjusted Trial Balance columns.
What is: d. Adjusted Trial Balance columns.
100
MThe second pair of columns on a 10-column work sheet prepared at the end of the period would be the a. Income Statement columns. b. Trial Balance columns. c. Adjustments columns. d. Adjusted Trial Balance columns.
What is: c. Adjustments columns.
100
The time an asset is expected to last is called its a. depreciation. b. fiscal period. c. net loss value. d. useful life.
What is: d. useful life.
200
If the book value of an asset is $12,500 and the accumulated depreciation is $3,500, the original cost of the asset is a. $16,000. b. $9,500. c. $9,000. d. $7,500.
What is: a. $16,000.
200
When posting an adjusting entry to the general ledger, write a. "adjusting" in the Posting Reference column. b. "adjusting" in the Item column. c. "ledger" in the general ledger. d. "balance" in the work sheet.
What is: b. "adjusting" in the Item column.
200
A net loss is shown on the work sheet as a(n) a. debit in the Balance Sheet columns. b. credit in the Balance Sheet columns. c. debit and a credit in the Balance Sheet columns. d. adjustment to owner's equity.
What is: a. debit in the Balance Sheet columns.
200
The fifth pair of columns on a 10-column work sheet prepared at the end of the period would be the a. Income Statement columns. b. Adjustments columns. c. Balance Sheet columns. d. Adjusted Trial Balance columns.
What is: c. Balance Sheet columns.
200
Supplies originally cost $500, but $150 worth of supplies were used this period. The adjusting entry would be: a. debit Supplies Expense, $150; credit Supplies, $150. b. debit Supplies Expense, $350; credit Supplies, $350. c. debit Supplies, $150; credit Supplies Expense, $150. d. debit Supplies, $350; credit Supplies Expense, $350.
What is: a. debit Supplies Expense, $150; credit Supplies, $150.
300
Net income is shown on the work sheet as a a. debit in the Balance Sheet column. b. credit in the Income Statement column. c. debit in the Income Statement column. d. debit in the Adjustments column.
What is: c. debit in the Income Statement column.
300
Owner's equity at the start of the period is $35,000; net income for the period is $30,000; the total investments by the owner is $15,000; and total withdrawals by the owner is $5,000. The owner's equity at the end of the period is a. $80,000. b. $75,000. c. $85,000. d. $40,000.
What is: b. $75,000.
300
What does the credit balance in the Accumulated Depreciation account represent? a. the cost of additional equipment purchased this year b. the amount of depreciation taken in past years c. the cost of existing equipment sold during the year d. the amount of depreciation taken in the current year
What is: b. the amount of depreciation taken in past years
300
The first pair of columns on a 10-column work sheet would be the a. Income Statement columns. b. Balance Sheet columns. c. Adjusted Trial Balance columns. d. Trial Balance columns.
What is: d. Trial Balance columns.
300
If a business records revenues when earned, regardless of whether cash has been received, and records expenses when they are incurred, the accounting system is a(n) a. accrual basis of accounting. b. cash basis of accounting. c. modified cash basis of accounting. d. revenue basis of accounting.
What is: a. accrual basis of accounting.
400
When assets are recorded at original value, they are recorded under the a. historical cost principle. b. original principle. c. current principle. d. value principle.
What is: a. historical cost principle.
400
The matching principle in accounting requires the matching of a. revenue earned with the expenses incurred to produce the revenue. b. revenue earned with the assets used to produce the revenue. c. revenue earned with the liabilities incurred to produce the revenue. d. revenue earned with the assets used less the liabilities incurred.
What is: a. revenue earned with the expenses incurred to produce the revenue.
400
The depreciation system used by many businesses for tax purposes is the a. Accelerated Cost Recovery System. b. Modified Adjusted Cost Recovery System. c. Modified Actual Cost Recovery System. d. Modified Accelerated Cost Recovery System.
What is: d. Modified Accelerated Cost Recovery System.
400
An asset cost $33,000. It has an expected useful life of 5 years and an expected salvage value of $3,000. Depreciation expense for the first year of the asset's life using the straight line method is a. $6,000. b. $6,600. c. $10,000. d. $13,200.
What is: a. $6,000.
400
An account used with a related account to bring about a decrease in the net amount of the two account balances is called a(n) a. contra-account. b. expense account. c. adjusting account. d. revenue account.
What is: a. contra-account.
500
The ____________________ is a method of accounting that combines aspects of the cash and accrual methods. It uses the cash basis for recording revenues and most expenses. Exceptions are made when cash is paid for assets with useful lives greater than one accounting period.
What is: MODIFIED CASH BASIS
500
The amount an item can be sold for under normal economic conditions is the ____________________.
What is: MARKET VALUE
500
The ____________________ method is a depreciation method in which the depreciable cost is divided by the estimated useful life.
What is: STRAIGHT LINE
500
The period of time that an asset is expected to help produce revenues is called its ____________________.
What is: USEFUL LIFE
500
A method of accounting under which revenues are recorded when cash is received and expenses are recorded when cash is paid is known as ____________________.
What is: CASH BASIS ACCOUNTING