Question : 11.2   Learning Objective 11-2 1) When completing a worksheet: A) the ending : 1171000

11.2   Learning Objective 11-2

1) When completing a worksheet:

A) the ending inventory amount appears in the income statement debit column.

B) the beginning inventory amount appears in the adjustment credit column.

C) the ending inventory amount appears in the unadjusted trial balance debit column of the worksheet.

D) the beginning inventory amount appears in the balance sheet debit column of the worksheet.

2) The balance sheet columns on the worksheet prepared for Cleveland Foods had subtotals as follows: debit column, $13,000, and credit column, $10,400. This information indicates that:

A) the company incurred a net income of $2,600.

B) the company incurred a net loss of $2,600.

C) an error was made when preparing the adjustments in the worksheet.

D) the unadjusted trial balance has an error.

3) The income statement columns on a worksheet have subtotals as follows: debit column, $12,000, and credit column, $9,000. This indicates that:

A) the company incurred a net loss of $3,000.

B) the company earned a net income of $1,500.

C) there was an error in the unadjusted trial balance columns.

D) there was an error in the income statement columns.

4) During the preparation of the worksheet, the $1,000 balance of the Sam, Withdrawal account was extended as a debit to the income statement columns. This error will:

A) overstate net income $1000.

B) understate net income $1000.

C) overstate net income $2000.

D) understate net income $2000.

5) Beginning and ending inventories are $900 and $800, respectively. The income statement debit and credit columns of the worksheet total $2,500 and $2,500, respectively, not including the adjustment amounts for beginning and ending inventories. The net income or loss for the period is:

A) $150 net income.

B) $150 net loss.

C) $100 net income.

D) $100 net loss.

6) On the worksheet the beginning Merchandise Inventory account appears in:

A) the adjustment column.

B) the trial balance and the balance sheet columns.

C) the trial balance and adjustment columns.

D) All of these answers are correct.

7) On the worksheet the ending Merchandise Inventory account appears in the:

A) adjusted trial balance and trial balance columns.

B) adjustment column.

C) adjustment, trial balance, and income statement columns.

D) adjustment, adjusted trial balance, and balance sheet columns.

8) The income summary amounts in the income statement columns of the worksheet represent:

A) income for the period.

B) adjustment for unearned revenue.

C) closing of the Capital account.

D) beginning and ending inventory.

9) Beginning and ending inventories for John’s Books are $12,000 and $9,000, respectively. The debit amounts (not including Income Summary) in the income statement columns of the worksheet total $13,000, and the credit amounts (not including Income Summary) total $14,500. The firm has a:

A) net income of $1,500.

B) net loss of $1,500.

C) net loss of $3,000.

D) net income of $3,000.

10) Which of the following items generally has a credit balance in the income statement columns of the worksheet?

A) Purchase Returns and Allowances

B) Purchases

C) Accumulated Depreciation

D) Accounts Payable