WorksheetsAcct Ch. 14 Review #3
Total questions: 20
Worksheet time: 12mins
Name
Class
Date
1.
Calculate straight-line depreciation expense based upon the following information: cost of equipment, $7,000; estimated useful life, 10 years; salvage value, $1,000.
a)
$600
b)
$700
c)
$800
d)
$1,000
2.
What is the entry for journalizing the declaration of a dividend?
a)
DR Dividends Payable, CR Dividends
b)
DR Dividends, CR Dividends Payable
c)
DR Dividends, CR Cash
d)
DR Dividends Payable, CR Cass
3.
If the total of the credit column of the Income Statement section is LESS than the debit column, there is a __________ for the period.
a)
credit
b)
debit
c)
net loss
d)
net income
4.
The entry to journalize the adjustments for merchandise inventory when the Merchandise Inventory is $150,000 and ending Merchandise Inventory is $170,000 is
a)
DR Income Summary $20,000, CR Merchandise Inventory $20,000
b)
DR Merchandise Inventory $20,000, CR Income Summary $20,000
c)
DR Income Summary $170,000, CR Merchandise Inventory $170,000
d)
DR Merchandise Inventory $20,000, CR Purchases $20,000
5.
What is the book value of Office Equipment based upon the following information: original cost, $10,000; salvage value, $1,000; accumulated depreciation, $4,000.
a)
$6,000
b)
$10,000
c)
$1,000
d)
$5,000
6.
When a work sheet is completed, a net income will appear in the:
a)
Income Statement Debit and Balance Sheet Credit columns
b)
Income Statement Credit and Balance Sheet Debit columns
c)
Balance Sheet Debit and Balance Sheet Credit columns
d)
Income Statement Debit and Income Statement Credit columns
7.
The adjustment for federal income tax includes
a)
an expense and a liability account
b)
an expense account only
c)
a revenue and an asset account
d)
an expense and an asset account
8.
The book value of accounts receivable
a)
is equal to the balance in the Accounts Receivable controlling account
b)
reflects the amount the business expects to collect in the future
c)
is calculated as Accounts Receivable lass Uncollectible Accounts Expense
d)
can be obtained from a single general ledger account
9.
Depreciation expense is calculated using all of the following except
a)
fair market value
b)
estimated salvage value
c)
estimated useful life
d)
original cost
10.
The total amount of depreciation expense that has been recorded since the purchase of a plant asset is called
a)
book value
b)
accumulated depreciation
c)
net realizable value
d)
salvage value
11.
Every adjustment entry
a)
must include an entry to a Income Statement and a Balance Sheet account
b)
must include an entry to an expense account
c)
must debit a revenue account
d)
must not include any estimated dollar amounts
12.
The amount recorded in Income Summary is extended to the Balance Sheet Debit or Credit account
a)
TRUE
b)
FALSE
13.
Purchases are recorded in the merchandise inventory account
a)
TRUE
b)
FALSE
14.
Recording expenses in the fiscal period in which the expenses contribute to earning revenue is an application of the accounting concept:
a)
Accounting Period Cycle
b)
Matching Expenses with Revenue
c)
Adequate Disclosure
d)
Historical Cost
15.
The federal income tax rate increases as the net income before federal income tax (NIBT) increases.
a)
TRUE
b)
FALSE
16.
The adjustment amount for Prepaid Insurance:
a)
represents the amount of Insurance used during the period
b)
recorded an a debit to Prepaid Insurance
c)
is recorded as a credit to Insurance expense
d)
is calculated by subtracting ending balance from the beginning balance
17.
Account names are listed on the work sheet in alphabetical order.
a)
TRUE
b)
FALSE
18.
Amounts from the Trial Balance section are extended first to the Income Statement sections.
a)
TRUE
b)
FALSE
19.
Which of the following is a contra account?
a)
accumulated depreciation
b)
merchandise inventory
c)
depreciation expense
d)
sales
20.
There will be a net loss if the Income Statement Debit column total is larger than the Income Statement Credit total.
a)
TRUE
b)
FALSE
100 %
