Unit 4

Topics: Double-entry bookkeeping system, Income statement, Generally Accepted Accounting Principles Pages: 4 (586 words) Published: June 20, 2013
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|
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 | Student Answer:| |  increase a liability account|  | | |  decrease an asset account|
 | | |  decrease a revenue account|
 | | |  decrease a liability account|
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 2.| Question :| The income statement is prepared from:|
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 | 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.| |

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 3.| Question :| Use the following worksheet to answer the following questions.

Based on the preceding trial balance, the entry to close expenses would be:|
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 | 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
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 | | |  Debit Income Summary 96,000
Credit Wages Expense 63,000
Credit Rent Expense 18,000
Credit Depreciation Expense 15,000|
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 4.| Question :| A fiscal year|
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 | 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| |

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 5.| Question :| The following are steps...
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