Question 1 of 20 0.0/ 5.0 points bringing account balances up to date

Question 1 of 20

0.0/ 5.0 Points

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

[removed] A. posting.
[removed] B. adjusting.
[removed] C. journalizing.
[removed] D. analyzing.

Question 2 of 20

0.0/ 5.0 Points

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

[removed] A. decrease total assets and increase total expenses
[removed] B. decrease total assets and decrease total expenses
[removed] C. increase total assets and increase total expenses
[removed] D. increase total assets and decrease total expenses

Question 3 of 20

5.0/ 5.0 Points

Income Summary

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

Question 4 of 20

0.0/ 5.0 Points

At the start of this year, 18 months’ rent was paid. At the year’s end, how will this affect the balance sheet?

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

Question 5 of 20

5.0/ 5.0 Points

Not recording the Prepaid Rent used causes

[removed] A. assets to be too high.
[removed] B. assets to be too low.
[removed] C. expenses to be too high.
[removed] D. revenue to be too high.

Question 6 of 20

0.0/ 5.0 Points

The depreciation of equipment will require an adjustment that results in

[removed] A. total assets increasing and total expenses increasing.
[removed] B. total assets increasing and total expenses decreasing.
[removed] C. total assets and expenses decreasing.
[removed] D. total assets decreasing and total expenses increasing.

Question 7 of 20

0.0/ 5.0 Points

As Prepaid Rent is used, the asset becomes a/an

[removed] A. liability.
[removed] B. expense.
[removed] C. contra-asset.
[removed] D. revenue.

Question 8 of 20

5.0/ 5.0 Points

Closing entries are prepared

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

Question 9 of 20

0.0/ 5.0 Points

If the adjustment for Supplies used during the period wasn’t made,

[removed] A. expenses would be too low.
[removed] B. assets would be too low.
[removed] C. expenses would be too high.
[removed] D. revenue would be too high.

Question 10 of 20

5.0/ 5.0 Points

It is the end of the year but not the end of the pay period. How will this affect the balance sheet?

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

Question 11 of 20

0.0/ 5.0 Points

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

Supplies Expense	$600
Depreciation Expense	400
Salaries Expense	300

[removed]

Income Summary	1,300
Supplies Expense	600
Depreciation Expense	400
Salaries Expense	300

[removed]

Income Summary	1,200
Capital	1,200

[removed]

Supplies Expense	500
Depreciation Expense	400
Salaries Expense	300
Income Summary	1,200

[removed]

Capital	1,200
Income Summary	1,200

Question 12 of 20

0.0/ 5.0 Points

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

[removed] A. $450.
[removed] B. $550.
[removed] C. $350.
[removed] D. $900.

Question 13 of 20

0.0/ 5.0 Points

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

[removed] A. Debit Supplies; credit Supplies Expense
[removed] B. Debit Supplies Expense; credit Cash
[removed] C. Debit Supplies Expense; credit Supplies
[removed] D. Debit Supplies; credit Cash

Question 14 of 20

0.0/ 5.0 Points

Which of the following would cause a contra-asset to be credited and an expense debited?

[removed] A. Recording an accrued expense
[removed] B. Recording the consumption of supplies
[removed] C. Recording the building depreciation
[removed] D. All of the above

Question 15 of 20

5.0/ 5.0 Points

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

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

Question 16 of 20

5.0/ 5.0 Points

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

[removed] A. permanent
[removed] B. real
[removed] C. temporary
[removed] D. zero

Question 17 of 20

0.0/ 5.0 Points

Closing entries

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

Question 18 of 20

5.0/ 5.0 Points

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

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

Question 19 of 20

0.0/ 5.0 Points

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

[removed] A. increases the total assets and increases the total expenses.
[removed] B. decreases the total assets and increases the total expenses.
[removed] C. increases the total liabilities and increases the total expenses.
[removed] D. decreases the total liabilities and increases the total expenses.

Question 20 of 20

0.0/ 5.0 Points

Which of the following would cause a liability to be credited and an expense to be debited?

[removed] A. Recording the adjustment for the expiration of rent
[removed] B. Recording the depreciation of equipment
[removed] C. Recording the accrual of salaries incurred
[removed] D. Purchasing equipment

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