Question 1

Which of the following accounts would appear in the balance sheet debit column?
A) Unearned Revenue
B) Accumulated Depreciation
C) Service Revenue
D) Prepaid Insurance

Accepted Answer

Prepaid Insurance is an asset account and would appear in the debit column of the balance sheet. Unearned Revenue, Service Revenue, and Accumulated Depreciation are all income statement accounts and would not appear in the balance sheet debit column.

Question 2

Which of the following accounts would appear in the balance sheet credit column?
A) Prepaid Insurance
B) Buildings
C) Unearned Revenue
D) Service Revenue

Accepted Answer

The answer of Which of the following accounts would appear...

Question 3

Where does net income appear on a worksheet?
A) Net income appears only in the income statement debit column.
B) Net income appears in the balance sheet credit column and in the income statement debit column.
C) Net income appears in the income statement credit column and in the balance sheet debit column.
D) Net income appears only in the balance sheet credit column.

Accepted Answer

The answer of Where does net income appear on a...

Question 4

Which of the following accounts would appear in the income statement debit column?
A) Unearned Revenue
B) Service Revenue
C) Depreciation Expense
D) Prepaid Insurance

Accepted Answer

The answer of Which of the following accounts would appear...

Question 5

Which of the following is true of a completed worksheet?
A) The total debits in the unadjusted trial balance column equal the total debits in the adjusted trial balance column.
B) The total debits in the income statement column equal the total credits in the balance sheet column.
C) The total debits in the income statement column equal the total debits in the balance sheet column.
D) The total of all the debit columns is equal to the total of all the credit columns.

Accepted Answer

A completed worksheet must have all debit and credit columns totaled, and these totals must be equal. Therefore, the total of all debit columns must be equal to the total of all credit columns.

Question 6

Prepaid Rent in the worksheet's unadjusted trial balance column is $6,000. Prepaid Rent in the balance sheet column is $5,000. Which of the following entries would have caused this difference?
A) a $1,000 debit entry to Prepaid Rent in the worksheet's adjustments column
B) a $1,000 credit entry to Rent Expense in the worksheet's adjustments column
C) a $1,000 credit entry to Prepaid Rent in the worksheet's adjustments column
D) a $1,000 credit entry to Rental Revenue in the worksheet's adjustments column

Accepted Answer

The difference between the unadjusted trial balance and the balance sheet column is $1,000 ($6,000 - $5,000 = $1,000), which indicates that $1,000 of the prepaid rent has been used/expensed. Therefore, a credit entry of $1,000 to Prepaid Rent in the adjustments column (choice C) would decrease the prepaid rent account to its correct balance and increase Rent Expense by $1,000. A debit entry to Prepaid Rent (choice A) would increase the account balance, which is not consistent with the difference observed, while a credit entry to Rent Expense (choice B) would decrease Rent Expense instead of increasing it. A credit entry to Rental Revenue (choice D) is unrelated and would not affect the Prepaid Rent account.

Question 7

Which of the following statements is true if the income statement credit column exceeds the income statement debit column on a worksheet?
A) The company made a net profit.
B) The company incurred a net loss.
C) The owner's capital account decreased during the period.
D) An error was made.

Accepted Answer

If the credit column (revenue and gains) exceeds the debit column (expenses and losses) on the income statement, it means the company made a net profit.

Question 8

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?
A) Rent Revenue
B) Insurance Expense
C) Salaries Payable
D) Equipment

Accepted Answer

Salaries Payable is a liability account that represents the amount of money the company owes to its employees for work already performed. This balance would appear in the credit column of the balance sheet as it represents a liability, or money owed by the company. The other accounts listed are all either revenues or assets, which would appear in the debit column of the balance sheet.

Question 9

Net income is entered as the balancing amount on the debit side of the income statement columns and the credit side of the balance sheet columns of the worksheet.

Accepted Answer

The answer of Net income is entered as the balancing...

Question 10

Which of the following statements is true of the worksheet?
A) Net income is recorded in the income statement credit column.
B) Net income is recorded in the adjusted trial balance debit column.
C) Net income is recorded in the income statement debit column.
D) Net income is recorded in the balance sheet debit column.

Accepted Answer

Net income is recorded in the income statement debit column because it is considered a revenue for the company. The income statement is used to calculate the net income or loss for the period, and net income is recorded in the debit column of the income statement.

Question 11

Which of the following accounts would appear in the income statement credit column?
A) Service Revenue
B) Prepaid Insurance
C) Unearned Revenue
D) Depreciation Expense

Accepted Answer

Service Revenue is a revenue account, which means it represents money earned by the company. Revenue accounts appear in the credit column of an income statement to show the total amount of money generated by the company during a period. The other choices are not revenue accounts and wouldn't appear in the income statement credit column.

Question 12

The Interest Expense in the worksheet's unadjusted trial balance column is $3,500. Interest Expense in the income statement column is $14,000. Which of the following entries would have caused this difference?
A) a $14,000 credit to Interest Expense in the worksheet's adjustments column
B) a $14,000 credit to Interest Payable in the worksheet's adjustments column
C) a $10,500 debit to Interest Expense in the worksheet's adjustments column
D) a $10,500 credit to Interest Expense in the worksheet's adjustments column

Accepted Answer

The difference between the unadjusted trial balance column and the income statement column indicates that $10,500 of interest expense was not recorded in the unadjusted trial balance. This could be because an interest expense was incurred during the period, but not yet recorded. Therefore, a $10,500 debit to Interest Expense in the worksheet's adjustments column would be required to bring the unadjusted trial balance column balance up to the income statement column balance ($14,000). Option A and B do not address the missing $10,500, and Option D would increase the difference rather than decrease it.

Question 13

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts.

Accepted Answer

Revenues and expenses are not included.

Question 14

The ending balances in the Owner, Capital and Owner, Withdrawals accounts are shown on the income statement columns of the worksheet.

Accepted Answer

The ending balances in the Owner, Capital and Owner, Withdrawals accounts are shown on the Balance Sheet columns of the worksheet, not the Income Statement columns.

Question 15

Which of the following statements is true if the income statement debit column exceeds the income statement credit column of a worksheet?
A) The company incurred a net loss.
B) The owner's capital account increased during the period.
C) The company made a net profit.
D) An error was made.

Accepted Answer

If the income statement debit column exceeds the income statement credit column, it means that total expenses exceed total revenues for the period, resulting in a net loss.

Question 16

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts except revenues and expenses.

Accepted Answer

The balance sheet section of the worksheet includes all asset and liability accounts, as well as equity accounts such as owners' equity and retained earnings, but not revenue and expense accounts, which are included in the income statement section.

Question 17

An income statement includes ________.
A) Land and Salaries Payable
B) Owner's Capital and Owner's Withdrawals
C) Furniture and Cash
D) Service Revenue and Utilities Expense

Accepted Answer

An income statement shows a company's revenue and expenses over a specific period of time, and is used to determine the company's net income or net loss. The items listed in option D (Service Revenue and Utilities Expense) are examples of revenue and expenses that would appear on an income statement. Options A, B, and C include items that would typically appear on other types of financial statements (such as the balance sheet), but not on an income statement.

Question 18

The following is the adjusted trial balance from the worksheet for Tuttle Photography.  Using the information provided in the worksheet above, prepare an income statement for Tuttle Photography.

Accepted Answer

The answer of The following is the adjusted trial balance...

Question 19

Which of the following statements is true of the worksheet?
A) The worksheet is a ledger.
B) The worksheet is a document used to summarize data to prepare financial statements.
C) The worksheet is a financial statement issued to the public to communicate the financial results of a company.
D) The worksheet is a journal.

Accepted Answer

The worksheet is a document used to summarize data and adjust accounts in preparation for financial statements. It is not a ledger or a financial statement issued to the public, nor is it a journal.

Question 20

In the worksheet, the adjusted balance of the Service Revenue account appears in the credit column of the income statement.

Accepted Answer

The adjusted balance of the Service Revenue account represents revenue that has been earned but not yet received or recorded, therefore it appears as a credit in the income statement.

Quiz 4: Completing the Accounting Cycle

Which of the following accounts would appear in the balance sheet debit column?

Which of the following accounts would appear in the balance sheet credit column?

Where does net income appear on a worksheet?

Which of the following accounts would appear in the income statement debit column?

Which of the following is true of a completed worksheet?

Prepaid Rent in the worksheet's unadjusted trial balance column is $6,000. Prepaid Rent in the balance sheet column is $5,000. Which of the following entries would have caused this difference?

Which of the following statements is true if the income statement credit column exceeds the income statement debit column on a worksheet?

Which of the following adjusted balances would appear in the balance sheet credit column of a worksheet?

Net income is entered as the balancing amount on the debit side of the income statement columns and the credit side of the balance sheet columns of the worksheet.

Which of the following statements is true of the worksheet?

Which of the following accounts would appear in the income statement credit column?

The Interest Expense in the worksheet's unadjusted trial balance column is $3,500. Interest Expense in the income statement column is $14,000. Which of the following entries would have caused this difference?

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts.

The ending balances in the Owner, Capital and Owner, Withdrawals accounts are shown on the income statement columns of the worksheet.

Which of the following statements is true if the income statement debit column exceeds the income statement credit column of a worksheet?

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts except revenues and expenses.

An income statement includes ________.

The following is the adjusted trial balance from the worksheet for Tuttle Photography. Using the information provided in the worksheet above, prepare an income statement for Tuttle Photography.

Which of the following statements is true of the worksheet?

In the worksheet, the adjusted balance of the Service Revenue account appears in the credit column of the income statement.