MULTIPLE CHOICE With Answers

980 Words Dec 19th, 2014 4 Pages
MULTIPLE CHOICE

1. The balance sheet reports
a.
assets.
b.
revenue.
c.
expenses.
d.
net income.

ANS: A DIF: Easy OBJ: LO 5-1 MSC: AACSB Communication

2. The fourth pair of columns on a 10-column work sheet prepared at the end of the period would be the
a.
Income Statement columns.
b.
Adjustments columns.
c.
Balance Sheet columns.
d.
Adjusted Trial Balance columns.

ANS: A DIF: Easy OBJ: LO 5-2 MSC: AACSB Communication

3. The third pair of columns on a 10-column work sheet prepared at the end of the period would be the
a.
Income Statement columns.
b.
Adjustments columns.
c.
Balance Sheet columns.
d.
Adjusted Trial Balance columns.

ANS: D DIF: Easy OBJ: LO 5-2 MSC: AACSB Communication

4. The second pair of columns on a
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the amount of depreciation taken in the current year

ANS: B DIF: Easy OBJ: LO 5-1 MSC: AACSB Communication

17. The adjusting entry for the depreciation of office equipment for the period includes
a.
debiting Depreciation Expense--Office Equipment and crediting Office Equipment.
b.
debiting Office Equipment and crediting Accumulated Depreciation--Office Equipment.
c.
debiting Depreciation Expense--Office Equipment and crediting Accumulated Depreciation--Office Equipment.
d.
debiting Office Equipment and crediting Depreciation Expense--Office Equipment.

ANS: C DIF: Easy OBJ: LO 5-1 MSC: AACSB Communication

18. The first pair of columns on a 10-column work sheet would be the
a.
Income Statement columns.
b.
Balance Sheet columns.
c.
Adjusted Trial Balance columns.
d.
Trial Balance columns.

ANS: D DIF: Easy OBJ: LO 5-2 MSC: AACSB Communication

19. A typical number for a contra-account would be
a.
185.
b.
185.c.
c.
185.1.
d.
185.contra.

ANS: C DIF: Easy OBJ: LO 5-1 MSC: AACSB Communication

20. When assets are recorded at original value, they are recorded under the
a.
historical cost principle.
b.
original principle.
c.
current principle.
d.
value principle.

ANS: A DIF: Easy OBJ: LO 5-1 MSC: AACSB Communication

21. The matching principle in accounting requires the matching of
a.
revenue earned with the expenses incurred to produce the revenue.
b.
revenue earned with the assets used to produce the revenue.
c.
revenue earned with the
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