Show:
Earnings & Worksheets
Inventory
Uncollectible Accounts
Depreciation
Income Tax
100
A worksheet is

a. used to plan adjustments and sort financial statement information.
b. prepared only once a year.
c. prepared to aid in the analysis of financial statements.
d. not necessary for small businesses.
a. used to plan adjustments and sort financial statement information.
100
Merchandise Inventory is

a. office supplies that are used in a business.
b. the amount of goods on hand for sale to customers.
c. the cost of goods sold.
d. operational supplies.
b. the amount of goods on hand for sale to customers.
100
The difference between an asset's account balance and its related contra account balance is called

a. net value.
b. whole value.
c. book value.
d. actual value.
c. book value.
100
Depreciation expense is

a. the portion of a plant asset's cost that is transferred to an expense account in each fiscal period during a plant asset's useful life.
b. the original cost of an asset.
c. the amount an owner expects to receive when a plant asset is removed from service.
d. the functional devaluation of an asset.
a. the portion of a plant asset's cost that is transferred to an expense account in each fiscal period during a plant asset's useful life.
100
To record an adjusting entry for federal income tax expense, you debit Federal Income Tax Expense and credit

a. Accumulated Depreciation-Office Equipment.
b. Allowance for Uncollectible Accounts.
c. Federal Income Tax Payable.
d. Income Summary.
c. Federal Income Tax Payable.
200
Preparing a worksheet at the end of each fiscal period is an application of the accounting concept

a. Accounting Period Cycle.
b. Adequate Disclosure.
c. Matching Expenses with Revenue.
d. Historical Cost.
a. Accounting Period Cycle.
200
On December 31st, if the balance of Prepaid Insurance is $5,800, but it should be $2,630 the adjusting entry will result in a debit to insurance expense for what amount?

a. 3,170
b. 8,430
c. 2,630
d. 2,000
a. 3,170
200
Recording an adjustment for uncollectible accounts expense results in a debit to Uncollectible Accounts Expense and a credit to

a. Accounts Receivable.
b. Allowance for Uncollectible Accounts.
c. Cash.
d. Accounts Payable.
b. Allowance for Uncollectible Accounts.
200
Salvage value is

a. the amount spent to buy supplies.
b. the amount an owner expects to receive when a plant asset is removed from use.
c. the residual value of a liability.
d. the cost to buy a new piece of equipment.
b. the amount an owner expects to receive when a plant asset is removed from use.
200
To calculate Income BEFORE Federal Income Tax you must exclude one expense in your calculation, which is

a. depreciation expense.
b. insurance expense.
c. uncollectible accounts expense.
d. federal income tax expense.
d. federal income tax expense.
300
Journalizing the declaring of a dividend results in

a. a debit to Dividends and a credit to Dividends Payable.
b. a debit to Dividends and a credit to Cash.
c. a debit to Dividends Payable and a credit to Dividends.
d. a debit to Dividends Payable and a credit to Cash.
a. a debit to Dividends and a credit to Dividends Payable.
300
The value of office supplies used during the year is

a. The office supplies on hand on December 31.
b. Office supplies on hand at the beginning of the year plus office supplies purchased during the year minus office supplies on hand on December 31.
c. Office supplies purchased during the year minus office supplies on hand on December 31.
d. Office supplies purchased during the year.
b. Office supplies on hand at the beginning of the year plus office supplies purchased during the year minus office supplies on hand on December 31.
300
The method used by many businesses to estimate uncollectible accounts expense is based on

a. a percentage of total sales on account.
b. a percentage of total accounts receivable.
c. an average of total sales on account.
d. an average of total accounts receivable.
a. a percentage of total sales on account.
300
Current assets are

a. cash and long-term assets.
b. assets that will be used for a number of years.
c. cash and other assets expected to be exchanged for cash or consumed within a year.
d. include land and equipment.
c. cash and other assets expected to be exchanged for cash or consumed within a year.
300
Different tax percentages are applied to different portions of the net income to determine the total federal income tax owed.

a. True
b. False
a. True
400
Journalizing the payment of a dividend results in

a. a debit to Dividends Payable and a credit to Cash.
b. a debit to Cash and credit to Dividends Payable.
c. a debit to Dividends Payable and a credit to Dividends.
d. none of the above.
a. a debit to Dividends Payable and a credit to Cash.
400
The general ledger account in which goods on hand for sale to customers are recorded is titled

a. Merchandise Inventory.
b. Inventory.
c. Purchases.
d. Purchases Inventory.
a. Merchandise Inventory.
400
Recording expenses in the fiscal period in which the expenses contribute to earning revenue is an application of the accounting concept

a. Accounting Period Cycle.
b. Adequate Disclosure.
c. Matching Expenses with Revenue.
d. Historical Cost.
c. Matching Expenses with Revenue.
400
The total amount of depreciation expense that has been recorded since the purchase of a plant asset is called

a. book value.
b. accumulated depreciation.
c. salvage value.
d. net realizable value.
b. accumulated depreciation.
400
When a worksheet is completed, a net loss will appear in the

a. Income Statement Debit and Balance Sheet Credit columns.
b. Income Statement Credit and Balance Sheet Debit columns.
c. Income Statement Debit and Income Statement Credit columns.
d. Balance Sheet Debit and Balance Sheet Credit columns.
b. Income Statement Credit and Balance Sheet Debit columns.
500
A business prepares a summary of financial information at least once each fiscal period because financial information

a. is needed to make management decisions.
b. shows whether a profit is being made or a loss is being incurred.
c. is needed to prepare tax reports.
d. all of these.
d. all of these.
500
The entry to journalize the adjustment for merchandise inventory when beginning Merchandise Inventory is $125,000 and ending Merchandise Inventory is $115,000 is

a. debit Merchandise Inventory, $10,000; credit Income Summary, $10,000.
b. debit Income Summary, $10,000; credit Merchandise Inventory, $10,000
c. debit Merchandise Inventory $115,000; credit Income Summary, $115,000.
d. debit Income Summary, $115,000; credit Merchandise Inventory, $115,000.
b. debit Income Summary, $10,000; credit Merchandise Inventory, $10,000
500
The book value of accounts receivable

a. is equal to the balance in the Accounts Receivable controlling account.
b. reflects the amount the business expects to collect in the future.
c. is calculated as Accounts Receivable less Uncollectible Accounts Expense.
d. can be obtained from a single general ledger account.
b. reflects the amount the business expects to collect in the future.
500
Depreciation expense is calculated using all of the following amounts except

a. fair market value.
b. estimated salvage value.
c. estimated useful life.
d. original cost.
a. fair market value.
500
The adjustment for federal income tax includes

a. an expense and a liability account.
b. an expense account only.
c. an expense account and a temporary equity account.
d. a liability account only.
a. an expense and a liability account.