Accounting Chapter 18

Front

Every adjustment affects one permanent and one temporary account.

Back

True

Front

The value of merchandise on hand is most accurately determined by a physical inventory.

Back

True

Front

If the Merchandise Inventory account is credited in the Adjustments section, it means that the ending inventory is greater than the beginning inventory.

Back

False

Front

The balance for Supplies in the Trial Balance section of the work sheet represents the beginning Supplies balance minus any supplies used during the period.

Back

False

Front

Federal Corporate Income Tax Payable is a liability account.

Back

True

Front

What is an expense paid in advance?

Back

prepaid expense

Front

Which of the following statements is incorrect concerning an adjusted trial balance? an adjusted trial balance shows proper balance sheet and income statement amounts, an adjusted trial balance is prepared before the adjusting entries have been journalized and posted, all of the other statements are true, an adjusted trial balance lists the account balances and their locations in the ledger

Back

an adjusted trial balance lists the account balances and their locations in the ledger

Front

A store purchased a one-year insurance policy for $1,800 on Sept. 1. Its fiscal period ended on Dec. 31. What is the amount of the adjustment and what accounts are debited and credited on Dec. 31?

Back

$600 - insurance expense and prepaid insurance

Front

The Income Summary amount in a worksheet's adjustment Debit column represents the ___________.

Back

decrease in Merchandise Inventory

Front

The ending balance of the Supplies account appears

Back

in the Balance Sheet columns of the worksheet