Unit 4

Satisfactory Essays
Grade Details - All Questions-Unit 6 |

1. | Question : | On March 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the work sheet would | | | Student Answer: | | increase a liability account | | | | decrease an asset account | | | | decrease a revenue account | | | | decrease a liability account | | | | | 2. | Question : | The income statement is prepared from: | | | Student Answer: | | The adjusted trial balance. | | | | The income statement columns of the work sheet. | | | | Either the adjusted trial balance or the income statement columns of the work sheet. | | | | both the adjusted trial balance and the income statement columns of the work sheet. | | | | | 3. | Question : | Use the following worksheet to answer the following questions.

Based on the preceding trial balance, the entry to close expenses would be: | | | Student Answer: | | Debit Wages Expense 63,000
Debit Rent Expense 18,000
Debit Depreciation Expense 15,000
Debit Income Summary 96,000 | | | | Debit Expenses 96,000
Credit Income Summary 96,000 | | | | Debit Wages Expense 63,000
Debit Rent Expense 18,000
Debit Depreciation Expense 15,000
Credit C. Finley, Drawing 96,000 | | | | Debit Income Summary 96,000
Credit Wages Expense 63,000
Credit Rent Expense 18,000
Credit Depreciation Expense 15,000 | | | | | 4. | Question : | A fiscal year | | | Student Answer: | | ordinarily begins on the first day of a month and ends on the last day of the following twelfth month | | | | for a business is determined by the federal government | | | | always begins on January 1 and ends on December 31 of the same year | | | | should end at the height of the business's annual operating cycle | | | | | 5. | Question : | The following are

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