Question

6) Salaries and Wages Expense appears on the while Salaries and Wages Payable is a(n): A) Balance sheet: expense on the balance sheet B) Balance sheet: liability on the income statement C) Income statement: liability on the balance sheet D) Income statement: expense on the income statement 7) In addition to requiring that the accounting equation remain in balance, the double-entry system also requires that: A) the total dollar amount of debits must equal the total dollar amount of credits. B) the number of asset accounts must equal the number of liability and stockholder's equity accounts C) for any transaction both sides of the accounting equation are affected. D) for any transaction, only two accounts are affected. 8) The journal entry to record the purchase of supplies on account includes a debit to: A) Supplies and a credit to Cash. B) Supplies and a credit to Accounts Payable. C) Supplies Expense and a credit to Cash. D) Supplies Expense and a credit to Accounts Payable 9) The unadjusted trial balance is a key starting point for the adjustment process. Which of the following accounts is unlikely to be affected by an adjusting entry? A) Cash B) Unearned Revenue C) Interest Payable D) Supplies 10) A company incurred $5,000 in wages for employees for the year. Of these wages, $4,500 was paid by the end of the year. Which of the following statements is correct? A) Salaries and Wages Expense on the income statement will be $500. B) Salaries and Wages Expense on the balance sheet will be $5,000. C) Salaries and Wages Payable on the balance sheet will be $500. D) Salaries and Wages Payable on the income statement will be $4.500. 11) Generally accepted accounting principles (GAAP) were (are) established by: A) the PCAOB B) the FASB on an ongoing basis. C) the U.S. Congress and the SEC. D) an Italian monk in 1494.

Answer 1

6) Ans: ( C) Income statement ; Liability on Balance Sheet

( expense are reported  in income statement, and expense accrued is a liability, which is reported in balance sheet.)

7) Ans: A) the total dollar amount of debits must equal the total dollar amount of credits.

[( b) no of accounts can be unequal so, its wrong choice.

(c) its not necessary , that both side will get affected so its also incorrect.

(d) more than two accounts get affected, so its also incorrect.)]

8) Ans: ( B) Supplies and credits to account payable

( purchase of supplies means purchase of assets, therfore supplies account is debited, its purchased on account so, its creates a liability, therfore account payable is credited.

9) Ans : ( A) Cash

( adjustments does not include receipt or payment of cash, hence its unlikely to be affected by adjusting entry.)

10. Ans: ( C) Salaries and Wages payable on the balance sheet will be $500

( here out of $5000 , $4500 are paid so remaing $500 are liability and would be recorded on balance sheet only.)

11. (B) the FASB on an ongoing basis.