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WorksheetsAccounting 1 - Ch. 8 Review
Total questions: 20
Worksheet time: 7mins
Name
Class
Date
1.
The journal entry to adjust Supplies is
a)
debit Supplies; credit Supplies Expense
b)
debit Supplies Expense; credit Supplies.
c)
debit Income Summary; credit Supplies.
d)
debit Supplies Expense; credit Income Summary
2.
After the adjusting entry for Supplies, Supplies Expense has an up-to-date balance that is the
a)
same as the beginning balance for Supplies.
b)
same as the ending balance for Supplies.
c)
value of supplies bought during the fiscal period.
d)
value of supplies used during the fiscal period.
3.
Accounts used to accumulate information from one fiscal period to the next are
a)
revenue accounts.
b)
permanent accounts.
c)
temporary accounts.
d)
expense accounts.
4.
Temporary accounts begin each fiscal period with a
a)
debit balance.
b)
credit balance.
c)
zero balance.
d)
balance equal to net income.
5.
When the total expenses are greater than the total revenue,
a)
the income summary account has a credit balance.
b)
the income summary account has a debit balance.
c)
debits equal credits.
d)
none of the other choices.
6.
The journal entry to close Income Summary when there is a net income is
a)
debit Sales; credit Income Summary.
b)
debit owner's capital; credit Income Summary.
c)
debit owner's capital account; credit Sales.
d)
debit Income Summary; credit owner's capital.
7.
Which accounting concept applies when a work sheet is prepared at the end of the fiscal period?
a)
Business Entity
b)
Accounting Period Cycle
c)
Adequate Disclosure
d)
Consistent Reporting
8.
Income Summary is
a)
an asset account.
b)
a liability account.
c)
a temporary account.
d)
a permanent account.
9.
After the closing entries are posted, the owner's capital account balance should be the same as
a)
shown on the balance sheet for the fiscal period.
b)
shown in the work sheet's Balance Sheet Debit column.
c)
shown in the work sheet's Balance Sheet Credit column.
d)
shown in the work sheet's Income Statement Debit column.
10.
Adjustments are analyzed and planned
a)
in the ledgers.
b)
on the financial statement.
c)
on a work sheet.
d)
none of the other options.
11.
The journal entry to adjust Prepaid Insurance is
a)
debit Prepaid Insurance; credit Insurance Expense.
b)
debit Insurance Expense; credit Prepaid Insurance.
c)
debit Income Summary; credit Prepaid Insurance.
d)
debit Insurance Expense; credit Income Summary.
12.
Information needed for closing entries is found in the
a)
Income Statement & Balance Sheet columns of the work sheet.
b)
Income Statement and Adjustments columns of the work sheet.
c)
Trial Balance and Adjustments columns of the work sheet.
d)
Trial Balance and Balance Sheet columns of the work sheet.
13.
The journal entry to close the expense accounts is
a)
debit Income Summary; credit owner's capital.
b)
debit Income Summary; credit each expense account.
c)
debit each expense account; credit Income Summary.
d)
none of the other options.
14.
When expenses are reported in the same period that they are used to produce revenue is the
a)
Business Entity concept.
b)
Going Concern concept.
c)
Matching Expenses with Revenue concept.
d)
the Adequate Disclosure concept.
15.
The last step of the accounting cycle is to
a)
journalize and post the closing entries.
b)
prepare a work sheet and financial statements.
c)
analyze transactions and journalize and post them.
d)
none of the other options.
16.
A source document is prepared for adjusting entries.
a)
True
b)
False
17.
The income summary account has a normal debit balance.
a)
True
b)
False
18.
All accounts in a general ledger are listed on a post-closing trial balance.
a)
True
b)
False
19.
Journal entries used to prepare temporary accounts for a new fiscal period are closing entries.
a)
True
b)
False
20.
Temporary accounts must start each fiscal period with a zero balance.
a)
True
b)
False
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