美国会计Chapter 3 Practice Materials

130 ??Chapter 3—The Adjusting Process

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c. asset, credit d. asset, debit

ANS: C DIF: Easy OBJ: 03-02 Which of the following is an example of an accrued expense? a. Salary owed but not yet paid b. Fees received but not yet earned c. Supplies on hand

d. A two-year premium paid on a fire insurance policy

ANS: A DIF: Difficult OBJ: 03-02 The net book value of a fixed asset is determined by a. Original cost less accumulated depreciation b. Original cost less depreciation expense

c. Original cost less accumulated depreciation plus depreciation expense d. Original cost plus accumulated depreciation

ANS: A DIF: Moderate OBJ: 03-02

The balance in the supplies account, before adjustment at the end of the year is $625. The proper adjusting entry if the amount of supplies on hand at the end of the year is $325 would be a. debit Cash $325, credit Supplies $325

b. debit Supplies Expense $300, credit Supplies $300 c. debit Supplies Expense$325, credit Supplies $325 d. debit Supplies $300, credit Supplies Expense $300

ANS: B DIF: Moderate OBJ: 03-02

The net income reported on the income statement is $90,000. However, adjusting entries have not been made at the end of the period for supplies expense of $2,700 and accrued salaries of $1,300. Net income, as corrected, is a. $87,300 b. $90,000 c. $88,700 d. $86,000

ANS: D DIF: Moderate OBJ: 03-03

At the end of the fiscal year, the usual adjusting entry to Prepaid Insurance to record expired insurance was omitted. Which of the following statements is true? a. Total assets at the end of the year will be understated. b. Owner's equity at the end of the year will be understated. c. Net income for the year will be overstated. d. Insurance Expense will be overstated.

ANS: C DIF: Difficult OBJ: 03-03

At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following statements is true?

a. Total assets will be understated at the end of the current year.

b. The balance sheet and income statement will be misstated but the statement of owner's

equity will be correct for the current year.

c. Net income will be overstated for the current year. d. Total liabilities and total assets will be understated.

Chapter 3—The Adjusting Process ??131

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ANS: C DIF: Difficult OBJ: 03-03

At the end of the fiscal year, the usual adjusting entry for accrued salaries owed to employees was omitted. Which of the following statements is true? a. Salary Expense for the year was understated.

b. The total of the liabilities at the end of the year was overstated. c. Net income for the year was understated.

d. Owner's equity at the end of the year was understated.

ANS: A DIF: Difficult OBJ: 03-03

The adjusting entry to adjust supplies was omitted at the end of the year. This would effect the income statements by having

a. expenses understated and therefore net income overstated b. revenues understated and therefore net income understated c. expenses understated and therefore net income understated d. expenses overstated and therefore net income understated

ANS: A DIF: Difficult OBJ: 03-03

Which of the accounts below would appear on an adjusted trial balance but probably would not appear on the trial balance? a. Fees Earned

b. Accounts Receivable c. Unearned Fees

d. Depreciation Expense

ANS: D DIF: Moderate OBJ: 03-04

Which of the accounting steps in the accounting process below would be completed last? a. preparing the adjusted trial balance b. posting

c. preparing the financial statements d. journalizing

ANS: C DIF: Moderate OBJ: 03-04 When is the adjusted trial balance prepared? a. Before adjusting journal entries are posted b. After adjusting journal entries are posted.

c. After the adjusting journal entries are journalized d. Before the adjusting journal entries are journalized.

ANS: B DIF: Moderate OBJ: 03-04 What is the purpose of the adjusted trial balance?

a. to verify that all of the adjusting entries have been posted b. to verify that the net income is correctly reported c. to verify that no adjusting journal entry has been omitted. d. to verify that the debits and credits balance

ANS: D DIF: Moderate OBJ: 03-04