Accounting Adjustments

A contra-asset is:

• in reality a liability
• an asset with a debit balance
• an account with an opposite balance of a normal asset
• an account that increases the asset

A form used to organize and check data before preparing financial reports is known as a(n):

• trial balance
• income statement
• balance sheet
• worksheet

When recording a transaction in a journal, the account listed first is always the:

• increase
• decrease
• debit
• credit

The left side of the any account is the

• debit side
• credit side
• ending balance
• footing

An adjustment for Prepaid Rent would indicate:

• the amount originally paid
• the amount expired
• the amount on hand
• the amount of the trial balance

The adjustment to record supplies used during the period would be:

• debit Supplies; credit Supplies Expense
• debit Supplies Expense; credit Cash
• debit Supplies Expense; credit Supplies
• debit Supplies; credit Cash

Which of the following would be an example of a contra-asset?

• depreciation expense
• residual value
• accumulated depreciation
• none of these answers are correct

Which of the following accounts would not need to be adjusted at the end of the year?

• office supplies
• prepaid rent
• accumulated depreciation
• cash

Which account would appear on the income statement?

• accumulated depreciation
• rent expense
• equipment
• cash

What type of account is Wages Payable?

• asset
• liability
• expense
• owner's equity