PRINCIPLES OF ACCOUNTING I
FUN QUIZ FOUR: CHAPTER FOUR
I. Multiple Choice. Select the best lettered answer for the number question or best lettered completion for the numbered partial statement. Record the letter next to the number.
1. _____ The account, Supplies, will appear in the following debit columns of the worksheet.
a. Trial balance
b. Adjusted trial balance
c. Balance sheet
d. All of these answer choices are correct
2. _____ If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a
a. debit to the owner's capital account.
b. debit to the owner's drawings account.
c. credit to the owner's capital account.
d. credit to the owner's drawings account.
3. _____ The Income Summary account is an important account that is used
a. during interim periods.
b. in preparing adjusting entries.
c. annually in preparing closing entries.
d. annually in preparing correcting entries.
4. _____ The income statement for the month of June, 2014 of Camera Obscura Enterprises contains the following information:
Salaries and Wages Expense $3,000 Rent Expense 1,500 Advertising Expense 800 Supplies Expense 300 Insurance Expense 100 Total expenses 5,700
Net income $1,300
After the revenue and expense accounts have been closed, the balance in Income Summary will be
b. a debit balance of $1,300.
c. a credit balance of $1,300.
d. a credit balance of $7,000.
ACCT220 Fun Quiz Four: Chapter Four: Continued: Page 2 of 3
5. _____ The income statement for the year 2014 of Fugazi Co. contains the following information:
Salaries and Wages Expense $45,000 Rent Expense 12,000 Advertising Expense 10,000 Supplies Expense 6,000 Utilities Expense 2,500 Insurance Expense 2,000 Total expenses 77,500
Net income (loss) $ (7,500)
At January 1, 2014,