Chapter 15 - Adjusting Entries

An Unadjusted Trial Balance if prepared after adjusting entries have been made

• True

• False

The amount of inventory on hand at the beginning of a fiscal period

• Beginning inventory

• Ending inventory

• Purchases

• Sales

The original cost of a plant asset minus accumulated depreciation

• Salvage value

• Useful life

• Book value of a plant asset

• Original cost

The amount of the adjustment for Prepaid Insurance represents the value of insurance premium used during the fiscal period

• True

• False

If the ending inventory is less than the account balance of Merchandise Inventory, the inventory adjustment will include a credit to Income Summary

• True

• False

The actual count of merchandise at the end of a fiscal period

• Beginning inventory

• Ending inventory

• Purchases

• Accrued Revenue

Interest earned but not yet received

• Accrued revenue

• Operating revenue

• Accrued interest income

• I don't know

The formula to calculate interest income is stated as

principal * interest rate * number of days to Dec. 31

• True

• False

Accumulated Depreciation-Store Equipment is a contra asset account with a normal debit balance

• True

• False

Functional depreciation occurs when a plant asset becomes inadequate or obsolete

• True

• False