Question : 91. An account linked with another account that has an opposite : 1256792

 

 

91. An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n): 

A. Accrued expense

B. Contra account

C. Accrued revenue

D. Intangible asset

E. Adjunct account

 

 

92. The total amount of depreciation recorded against an asset or group of assets during the entire time the asset or assets have been used in the day-to-day operations of the business: 

A. Is referred to as depreciation expense.

B. Is referred to as accumulated depreciation.

C. Is shown on the income statement of the final period.

D. Is only recorded when the asset is disposed of.

E. Is referred to as an accrued asset.

 

 

93. The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used, representing the expense of using the assets, is called: 

A. Accumulated depreciation

B. A contra account

C. The matching principle

D. Depreciation

E. An accrued account

 

 

94. Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is: 

A. Debit Office Supplies $105 and credit Office Supplies Expense $105.

B. Debit Office Supplies Expense $105 and credit Office Supplies $105.

C. Debit Office Supplies Expense $254 and credit Office Supplies $254.

D. Debit Office Supplies $254 and credit Office Supplies Expense $254.

E. Debit Office Supplies $105 and credit Supplies Expense $254.

 

 

95. Throughout an accounting period, the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees. What is the end-of-period adjusting entry to record the portion of those fees that have been earned? 

A. Debit Cash and credit Legal Fees Earned.

B. Debit Cash and credit Unearned Legal Fees.

C. Debit Unearned Legal Fees and credit Legal Fees Earned.

D. Debit Legal Fees Earned and credit Unearned Legal Fees.

E. Debit Unearned Legal Fees and credit Accounts Receivable.

 

 

96. On April 1, 2014, a company paid $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31, 2014? 

A. $1,350

B. $450

C. $1,012.50

D. $337.50

E. $37.50

 

 

97. A company had no office supplies at the beginning of the year. During the year, the company purchased $250 worth of office supplies. On December 31, $75 worth of office supplies remained. How much should the company report as office supplies expense for the year? 

A. $75

B. $125

C. $175

D. $250

E. $325

 

 

98. On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: 

A. Debit Prepaid Insurance, $1,800; credit Cash, $1,800.

B. Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440.

C. Debit Prepaid Insurance, $360; credit Insurance Expense, $360.

D. Debit Insurance Expense, $360; credit Prepaid Insurance, $360.

E. Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440.

 

 

99. Unearned revenue is reported on the financial statements as: 

A. A revenue on the balance sheet.

B. A liability on the balance sheet.

C. An unearned revenue on the income statement.

D. An asset on the balance sheet.

E. An operating activity on the statement of cash flows.

 

 

100. Which of the following assets is not depreciated? 

A. Store fixtures

B. Computers

C. Land

D. Buildings

E. Vehicles