Question :
81. Accumulated Depreciation, Accounts Receivable, and Service Fees Earned would be : 1225767
81. Accumulated Depreciation, Accounts Receivable, and Service Fees Earned would be sorted to which respective columns in completing a work sheet?
A. Balance Sheet and Statement of Owner’s Equity-Credit; Balance Sheet and Statement of Owner’s Equity Debit; and Income Statement-Credit.
B. Balance Sheet and Statement of Owner’s Equity-Debit; Balance Sheet and Statement of Owner’s Equity-Credit; and Income Statement-Credit.
C. Income Statement-Debit; Balance Sheet and Statement of Owner’s Equity-Debit; and Income Statement-Credit.
D. Income Statement-Debit; Income Statement-Debit; and Balance Sheet and Statement of Owner’s Equity-Credit.
E. Balance Sheet and Statement of Owner’s Equity-Credit; Income Statement-Debit; and Income Statement-Credit.
82. Which of the following statements is incorrect?
A. Working papers are useful aids in the accounting process.
B. On the work sheet, the effects of the accounting adjustments are shown on the account balances.
C. After the work sheet is completed, it can be used to help prepare the financial statements.
D. On the work sheet, the adjusted amounts are sorted into columns according to whether the accounts are used in preparing the unadjusted trial balance or the adjusted trial balance.
E. A worksheet is not a substitute for financial statements.
83. A company shows a $600 balance in Prepaid Insurance in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired insurance of $200. This adjusting entry results in:
A. $200 decrease in net income.
B. $200 increase in net income.
C. $200 difference between the debit and credit columns of the Unadjusted Trial Balance.
D. $200 of prepaid insurance.
E. An error in the financial statements.
84. Statements that show the effects of proposed transactions as if the transactions had already occurred are called:
A. Pro forma statements.
B. Professional statements.
C. Simplified statements.
D. Temporary statements.
E. Interim statements.
85. If in preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column. The Balance Sheet columns will balance on completing the work sheet but with the wrong net income, if the amount sorted in error is:
A. An expense amount placed in the Balance Sheet Credit column.
B. A revenue amount placed in the Balance Sheet Debit column.
C. A liability amount placed in the Income Statement Credit column.
D. An asset amount placed in the Balance Sheet Credit column.
E. A liability amount placed in the Balance Sheet Debit column.
86. If the Balance Sheet and Statement of Owner’s Equity columns of a work sheet fail to balance when the amount of the net income is added to the Balance Sheet and Statement of Owner’s Equity Credit column, the cause could be:
A. An expense amount entered in the Balance Sheet and Statement of Owner’s Equity Debit column.
B. A revenue amount entered in the Balance Sheet and Statement of Owner’s Equity Credit column.
C. An asset amount entered in the Income Statement and Statement of Owner’s Equity Debit column.
D. A liability amount entered in the Income Statement and Statement of Owner’s Equity Credit column.
E. An expense amount entered in the Balance Sheet and Statement of Owner’s Equity Credit column.
87. The following items appeared on a company’s December 31 work sheet for the current period. Based on the following information, what is the net income for the current period?
A. $1,400.
B. $1,855.
C. $1,905.
D. $2,060.
E. $4,670.
88. Which of the following errors would cause the Balance Sheet and Statement of Owner’s Equity columns of a work sheet to be out of balance?
A. Entering an asset amount in the Income Statement Debit column.
B. Entering a liability amount in the Income Statement Credit column.
C. Entering an expense amount in the Balance Sheet and Statement of Owner’s Equity Debit column.
D. Entering a revenue amount in the Balance Sheet and Statement of Owner’s Equity Debit column.
E. Entering a liability amount in the Balance Sheet and Statement of Owner’s Equity Credit column.
89. The Unadjusted Trial Balance columns of a work sheet total $84,000. The Adjustments columns contain entries for the following:
1. Office supplies used during the period, $1,200.
2. Expiration of prepaid rent, $700.
3. Accrued salaries expense, $500.
4. Depreciation expense, $800.
5. Accrued service fees receivable, $400.
The Adjusted Trial Balance columns total is:
A. $80,400.
B. $84,000.
C. $85,700.
D. $85,900.
E. $87,600.
90. The balances in the unadjusted columns of a work sheet will agree with:
A. the balances reflected in the company’s financial statements.
B. the balances reflected in the company’s unadjusted trial balance.
C. whatever balances management has decided to report.
D. the balances in the company’s post-closing trial balance.
E. the balances management budgeted for the accounting period.
