Reference no: EM133173590
Questions -
Q1. Closing entries will affect
A) total Assets.
B) Cash.
C) Owner's Capital.
D) total Liabilities.
Q2. 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 are correct.
Q3. The adjusting entry to record depreciation for the company automobile would be
A) debit Accumulated Depreciation, Automobile; credit Depreciation Expense, Automobile.
B) debit Accumulated Depreciation, Automobile; credit Automobile.
C) debit Depreciation Expense, Automobile; credit Accumulated Depreciation, Automobile.
D) debit Depreciation Expense, Automobile; credit Automobile.
Q4. If the balance of supplies asset account at the end of the period was $800 and you counted $100 on hand, the amount for the adjustment for Supplies expense would be
A) $700 credit.
B) $700 debit.
C) $100 credit.
D) $100 debit.
Q5. On March 1, Rosetti Company paid in advance $7,000 for seven months' rent. The March 31 adjusting entry for rent expense should include
A) debit Rent Expense, $2,500.
B) credit Prepaid Rent, $3,500.
C) debit Rent Expense, $2,000.
D) debit Rent Expense, $1,000.
Q6. Which of the following is most likely to result in an adjusting entry at the end of the period?
A) Payment of two months' insurance in advance
B) Payment of one month's rent
C) Owner's withdrawals
D) Payment for routine maintenance on the company van
Q7. The adjusted trial balance on the worksheet shows Accumulated Depreciation, $1,000, and Depreciation Expense, $700. What was the balance in the Accumulated Depreciation account before the adjustment?
A) $1,700
B) $300
C) $700
D) $1,000
Q8. Marni's Dance Academy estimated depreciation on its building at $400. The adjusting entry for depreciation of the building would include
A) a debit to Accumulated Depreciation for $400.
B) a debit to Depreciation Expense for $400.
C) a credit to Building for $400.
D) a credit to Depreciation Expense for $400.
Q9. Roy's Windows Company showed supplies available during the year of $1,700. A count of the supplies on hand as of October 31 is $600. The adjusting entry for Store Supplies expense would include
A) a debit to Store Supplies Expense for $600.
B) a credit to Store Supplies Expense for $600.
C) a debit to Store Supplies for $1,100.
D) a debit to Store Supplies Expense for $1,100.
Q10. Albert's Bakery purchased an industrial oven for $22,000 with a residual value of $6,000 and a life expectancy of 8 years. Using straight-line depreciation, the amount of the depreciation adjustment for the first year would be
A) $1,000.
B) $8,000.
C) $2,000.
D) $4,000.
Q11. Residual value is the
A) estimated value of the asset when it is purchased.
B) estimated value of the asset at the end of its useful life.
C) cost of the asset.
D) allocation of the cost.
Q12. As Withdrawals increase,
A) Owner's Equity decreases.
B) Owner's Equity increases.
C) Cash increases.
D) Expense increases.
Q13. Reynold journalized and posted an entry for $2,000 debit to Cash; and $2,000 credit to Service Fees. The correct amount on the billing was $200. The entry to correct this error is
A) debit Cash, $1,800; credit Service Fees, $1,800.
B) debit Service Fees, $1,800; credit Cash, $1,800.
C) debit Service Fees, $2,800; credit Cash, $2,000.
D) debit Service Fees, $200; credit Cash, $200.
Q14. A credit to an asset account was posted to a revenue account. This would cause
A) assets to be understated.
B) liabilities to be understated.
C) capital to be understated.
D) revenue to be overstated
Q15. Posting - transferring information from a journal to a ledger, The purpose of posting is to
A) list the transactions in chronological order in the journal.
B) provide an explanation of the transaction
C) update the account balances in the ledger.
D) correct a previous entry.
Q16. Which of the following entries would record the payment of a utility bill?
A) Utilities Expense, debit; Cash, credit.
B) Cash, debit; Utilities Expense, credit.
C) Utilities Expense, debit; Accounts Payable, credit.
D) Accounts Payable, debit; Utilities Expense, credit.