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WorksheetsAccounting Chapter 15
Total questions: 29
Worksheet time: 15mins
Name
Class
Date
1.
Annual straight-line depreciation expense of a plant asset is calculated as the original cost of the plant asset divided by the years of estimated useful life.
a)
True
b)
False
2.
Estimated federal income tax must be paid in monthly installments.
a)
True
b)
False
3.
All accounts are listed on the unadjusted trial balance regardless of whether there is a balance or not.
a)
True
b)
False
4.
Functional depreciation should be considered in estimating the useful life of computer equipment.
a)
True
b)
False
5.
For a business using the periodic inventory method, purchases are recorded in the Merchandise Inventory account.
a)
True
b)
False
6.
The Income Summary account is one of the accounts used to adjust the Merchandise Inventory account at the end of the fiscal period.
a)
True
b)
False
7.
The annual straight-line depreciation of equipment costing $7,000.00 with a salvage value of $1,000.00 and a useful life of 5 years would be $1,400.00.
a)
True
b)
False
8.
The value of the insurance coverage used is recorded as a debit to Insurance Expense.
a)
True
b)
False
9.
The book value of a plant asset is its original cost minus accumulated depreciation.
a)
True
b)
False
10.
For a business using the periodic inventory method, the balance of Merchandise Inventory in the unadjusted trial balance represents the beginning balance plus all purchases of merchandise made in the fiscal period.
a)
True
b)
False
11.
The difference between an asset’s account balance and its related contra account is called book value.
a)
True
b)
False
12.
The tax rate associated with an income tax bracket is called the effective tax rate.
a)
True
b)
False
13.
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.
a)
True
b)
False
14.
A business can use any 12-month period for reporting its financial performance.
a)
True
b)
False
15.
Cash and other assets expected to be exchanged for cash or consumed within a year are called liquid assets.
a)
True
b)
False
16.
Depreciation expense is recorded on all plant assets.
a)
True
b)
False
17.
The marginal tax rate increases as the net income before federal income tax increases.
a)
True
b)
False
18.
The Internal Revenue Service sets the amounts and rates of the tax brackets used to calculate federal income tax expense.
a)
True
b)
False
19.
The total amount of depreciation expense that has been recorded since the purchase of a plant asset is called accumulated depreciation.
a)
True
b)
False
20.
A physical inventory is always conducted at the end of each
a)
a. week.
b)
b. month.
c)
c. fiscal year.
d)
d. none of these.
21.
The amount of the adjustment to Allowance for Uncollectible Accounts when the account balance is a $400.00 debit and $5,000.00 of accounts receivable is estimated to be uncollectible would be
a)
a. $400.00.
b)
b. $4,600.00.
c)
c. $5,000.00.
d)
d. $5,400.00.
22.
Accrued interest income on notes receivable is calculated using all of the following information except the
a)
a. annual interest rate.
b)
b. principal.
c)
c. term of the note.
d)
d. date of the note.
23.
The adjustment unique to merchandising businesses adjusts
a)
a. Accounts Receivable.
b)
b. Accumulated Depreciation
c)
c. Merchandise Inventory.
d)
d. Prepaid Insurance.
24.
The journal entry to adjust Merchandise Inventory when beginning merchandise inventory is $125,000.00 and ending merchandise inventory is $115,000.00 would be
a)
a. debit Merchandise Inventory, $10,000.00 and credit Income Summary, $10,000.00.
b)
b. debit Income Summary, $10,000.00 and credit Merchandise Inventory, $10,000.00.
c)
c. debit Merchandise Inventory, $115,000.00 and credit Income Summary, $115,000.00.
d)
d. debit Income Summary, $115,000.00 and credit Merchandise Inventory, $115,000.00.
25.
Recording depreciation expenses is an application of the accounting concept
a)
a. Accounting Period Cycle.
b)
b. Adequate Disclosure.
c)
c. Matching Expenses with Revenue.
d)
d. Historical Cost.
26.
Depreciation expense is calculated using all of the following amounts except
a)
a. fair market value.
b)
b. estimated salvage value.
c)
c. estimated useful life.
d)
d. original cost.
27.
The total amount of depreciation expense that has been recorded since the purchase of a plant asset is called
a)
a. book value.
b)
b. accumulated depreciation.
c)
c. salvage value.
d)
d. net realizable value.
28.
The adjustment for unpaid federal income tax includes a(n)
a)
a. expense and a liability account.
b)
b. expense account only.
c)
c. expense account and a temporary equity account.
d)
d. liability account only.
29.
Revenue earned in one fiscal period but not received until a later fiscal period is called accrued revenue.
a)
True
b)
False
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