Question : 51) Depreciation of equipment was recorded twice this period. would: A) : 1171294

51) Depreciation of equipment was recorded twice this period. This would:

A) overstate expenses and overstate assets.

B) overstate expenses and understate assets.

C) understate expenses and overstate assets.

D) understate assets and understate assets.

52) Adjusting the supplies account will:

A) decrease the total assets and increase the total expenses.

B) decrease the total assets and decrease the total expenses.

C) increase the total assets and increase the total expenses.

D) increase the total assets and decrease the total expenses.

53) It’s the end of the accounting period and no electric bill has been received (but the expense has been incurred); you should record an entry that:

A) increases the total assets and increases the total expenses.

B) decreases the total assets and increases the total expenses.

C) increases the total liabilities and increases the total expenses.

D) decreases the total liabilities and increases the total expenses.

54) The entry to record the expiration of part of the Prepaid Rent Expense will:

A) decrease total liabilities and increase total expenses at the end of the month.

B) decrease total assets and decrease total expenses at the end of the month.

C) increase total assets and increase total expenses at the end of the month.

D) increase total assets and decrease total expenses at the end of the month.

55) The depreciation of equipment will require an adjustment that results in:

A) total assets increasing and total expenses increasing.

B) total assets increasing and total expenses decreasing.

C) total assets and revenue decreasing.

D) total assets decreasing and total expenses increasing.

56) Which of the following would cause a liability to be credited and an expense to be debited?

A) Recording the adjustment for the expiration of rent

B) Recording the depreciation of equipment

C) Recording the accrual of salaries incurred

D) Purchasing equipment

57) Which of the following would cause a contra-asset to be credited and an expense debited?

A) Recording an accrued expense

B) Recording the consumption of supplies

C) Recording the building depreciation

D) All of the above would have that effect.

58) Which of the following would cause total assets to decrease and total expense to increase?

A) Recording the depreciation of equipment

B) Recording the consumption of supplies

C) Recording the expiration of Prepaid Rent Expense

D) All of the above would have that effect

59) It is the year end, but not the pay period end. How will this affect the balance sheet?

A) Assets will be decreased.

B) Liabilities will be increased.

C) Owner’s equity will be increased.

D) This has no effect on the period end balance sheet.

60) At the start of this year 18 months rent was paid. At the year’s end, how will this affect the balance sheet?

A) Assets will be decreased.

B) Liabilities will be increased.

C) Owner’s equity will be increased.

D) This has no effect on the period end balance sheet.