WorksheetsModule 6- Adjustments and Worksheet (6 and 10)
Total questions: 29
Worksheet time: 15mins
The general ledger account titles are listed and posted in the Trial Balance
True
False
On a worksheet, the balance of the owner’s capital account is extended to the balance sheet credit column.
True
False
The general accounts are listed and posted in the Adjustments section of the worksheet.
True
False
What will happen when total revenue exceeds total expenses?
The business will earn an income
The business will incur net loss
The business will either earn an income or loss
The business will neither earn nor lose an income
Which of the following statements is not true about worksheet preparation?
A credit in the trial balance and a debit in the adjustments columns means that we have to add the columns and place the total in the column with the greater value
If an account is in debit in the adjusted trial balance, extend the figures to the debit side of the income statement/ balance sheet column.
Cash account up to drawing account are extended to the balance sheet column
If it is a revenue or expense, extend to income statement columns, otherwise extend the accounts to balance sheet columns
Which of the following statements is True about worksheet preparation?
If an account is in debit in the adjusted trial balance, extend the figures to the debit side of the income statement/ balance sheet column.
A credit in the trial balance and a debit in the adjustments columns means that we have to add the columns and place the total in the column with the greater value
Cash account up to drawing account are extended to the income statement column
If it is a revenue or expense, extend to balance sheet columns, otherwise extend the accounts to income statement columns
Which accounts should be extended to the Income Statement columns?
The ending balances of the following accounts appeared in the Trial Balance columns of the worksheet.
i. Prepaid Insurance
ii. Office Supplies
iii. Unearned Rent
iv. Fees Earned
v. Supplies Expense
vi. Loan Payable
vii. Salary and Wages
iv, v, vii
ii, v, vii
I, ii, iii
Iv, v, vii
Which accounts should be extended to the Balance Sheet columns?
The ending balances of the following accounts appeared in the Trial Balance columns of the worksheet.
i. Prepaid Insurance
ii. Office Supplies
iii. Unearned Rent
iv. Fees Earned
v. Supplies Expense
vi. Loan Payable
vii. Salary and Wages
i, ii, iii vi
i, ii, iii, vi
i, iv, v,vii
ii, iv, v, vii
A net loss in the worksheet is entered in the debit column of the Income Statement and credit column of the Balance Sheet.
True
False
A net profit in the worksheet is entered in the credit column of the Income Statement and credit column of the Balance Sheet.
True
False
When the Income Statement Credit column total is greater than the Income Statement debit column total on a worksheet, the business has a Net Profit.
True
False
What is this process called?
Adjustments
Deferrals
Extending
Correcting entries
What is this adjustment that refers to the allocation of the cost of the asset over its estimated useful life?
Depreciation
Contra asset
Deterioration
Consumption
What type of adjustment represents revenue or income already collected but not yet earned?
Unearned Revenue
Service Revenue
Sales Revenue
Accrued Income
This refers to the income that has already been received by the company but not yet earned.
Unearned Income
Prepaid Expense
Depreciation expense
Accrued Income
This refers to the postponement of the recognition of and expense already paid but not yet incurred or a revenue already collected but not yet earned.
Deferrals
Accruals
Adjustments
Worksheet
If the accounts listed in the trial Balance are not complete, new accounts will be created below the Trial Balance totals in the preparation of the worksheet.
True
False
What is a draft of paper where you work out your posting of accounts and figures in order to obtain the amounts of trial balance with various adjustment accounts?
Worksheet
Income Statement
Balance Sheet
Adjusted Trial Balance
This refers to the journal entries that update the general ledger accounts at the end of the accounting period.
adjusting entries
deferrals
accruals
worksheet
What are the two general types of adjustments made at the end of the accounting period?
Prepayments and unearned income
Accruals and deferrals
Unadjusted trial balance and adjusted trial balance
Adjusting entries and worksheet
In the worksheet, this section brings accounts up to date for statement preparation.
Adjustments
Adjusted Trial Balance
Income Statement
Balance Sheet
Which of the following entries refer to accruals?
Salary Payable
Prepaid Rent
Prepaid Advertising
Depreciation
What will you prepare to come up with accurate figures on the accounts?
Adjusted Trial Balance
Balance Sheet
Income Statement
Unadjusted Trial Balance
Which of the following entries refer to the deferrals?
Prepaid Insurance
Accrued Expense
Accrued Income
Accrued Salary and Wages
Refer to the following account balances (in Philippine peso) and solve for the net income.
Service Income- 596,500
Interest Income-12,000
Salaries and Wages-258,500
Utilities Expense-125,000
Advertising Expense-50,000
Rent Expense-60,000
115,000
125,000
105,000
155,500
Refer to the following account balances (in Philippine peso) and solve for the net income.
Service Income- 596,500
Interest Income-12,000
Salaries and Wages-258,500
Utilities Expense-125,000
Advertising Expense-50,000
Rent Expense-60,000
493,500
491,500
492,500
493,000
How much is the total assets of the business?
Total Liabilities-412,000
Owner’s Equity-450,000
How much is the total assets of the business?
862,000
125,000
38,000
864,000
The assets, liability and owner’s equity are extended to what worksheet section?
Balance Sheet section
Income Statement section
Trial Balance section
Adjusted Trial Balance section
A _________ results when revenue is less than expenses.
net loss
net income
debit
credit
