Ch#16 Accounting

Front

The Prepaid Insurance account must be adjusted at the end of a fiscal period because the account balance does not reflect the value of the insurance premiums that expired during the period.

Back

True

Front

The annual straight-line depreciation of equipment costing $7,000 with a salvage value of $1,000 and a useful life of 5 years would be? [(7000-1000)/5]

Back

$1,400

Front

The total amount of depreciation expense that has been recorded since the purchase of a plant asset is called

Back

accumulated depreciation

Front

Estimated federal income tax must be paid

Back

quarterly

Front

The Income Summary account is used to help adjust the ________________ account

Back

Merchandise Inventory

Front

Depreciation expense is calculated using all of the following amounts except

Back

fair market value

Front

The adjustment unique to a merchandising business adjusts ____________
[Hint: service businesses would not need this account]

Back

Merchandise Inventory

Front

The journal entry to adjust Merchandise Inventory when beginning merchandise inventory is $125,000 and ending merchandise inventory is $115,000 would be

Back

Income Summary (debit) $10,000 and Merchandise Inventory (credit) $10,000.

Front

Recording depreciation expenses is an application of the accounting concept

Back

Matching Expenses with Revenue

Front

The adjustment for unpaid federal income tax includes a(n)

Back

expense and a liability account