Question

1) A worksheet is a:
A) formal document shown with a company's annual report.
B) formal document required by the Canada Revenue Agency.
C) formal document required by creditors.
D) multicolumn document used by accountants to aid in the preparation of the financial statements.

2) All of the following are listed on a worksheet except:
A) a debit and credit column for a statement of owner's equity.
B) a debit and credit column for an income statement.
C) a debit and credit column for a balance sheet.
D) a debit and credit column for adjustments.

3) The income statement debit column exceeds the income statement credit column on a worksheet. This indicates:
A) a net income for the company.
B) a net loss for the company.
C) that mistakes were made in the preparation of the worksheet.
D) the owner's capital account increased during the period.

4) Which of the following appears in the balance sheet debit column of a worksheet?
A) service revenue B
B) income summary
C) owner withdrawals
D) accounts payable

5) If the unearned service revenue account had an unadjusted normal balance of $4,800, and an adjustment was made debiting the account for $1,500, the account would appear on the adjusted trial balance of the worksheet as a:
A) $4,800 debit.
B) $6,300 credit.
C) $3,300 credit.
D) $3,300 debit.

6) After all the account balances have been extended to all columns of the worksheet, the totals of the debit and credit columns for the income statement columns are $35,350 and $38,750, respectively. It can be concluded the company has a:
A) net income of $3,400.
B) net loss of $3,400.
C) $74,100 net loss.
D) $74,100 net income.

7) An error has been made on the worksheet if:
A) the trial balance columns and the adjusted trial balance columns are not equal.
B) the income statement columns do not equal the balance sheet columns.
C) the adjusted trial balance debit column and credit column do not equal.
D) the unadjusted trial balance column is in balance.

8) Unearned fees appear on the:
A) adjusted trial balance debit column and income statement credit column of a worksheet.
B) adjusted trial balance debit column and balance sheet credit column of a worksheet.
C) balance sheet credit column and adjusted trial balance credit column of a worksheet.
D) "Unearned fees" does not appear on a worksheet.

9) The owner withdrawals account: C
A) is not closed at the end of the accounting period.
B) is used to record salary paid to the owner.
C) is closed to the income summary account.
D) is closed to the capital account.

10) The income summary account:
A) is a type of temporary account.
B) is a type of revenue account.
C) is a current asset.
D) is a current liability.

11) Adjusting entries are:
A) a key element of accrual accounting.
B) required in both accrual and cash-basis accounting.
C) recorded only on the worksheet.
D) recorded in the general journal but not on the worksheet.

12) Revenues total $20,200, expenses total $17,300, and the owner's withdrawals account has a balance of $12,600. What is the balance in the income summary account prior to closing net income or net loss?
A) $2,900 debit
B) $9,700 debit
C) $2,900 credit
D) $9,700 credit

13) The income summary account is closed to the:
A) cash account.
B) withdrawals account.
C) service revenue account.
D) capital account.

14) The balance in the capital account after all closing entries have been posted is:
A) equal to net income or loss for the period.
B) the same as the balance of the account on the worksheet.
C) always more than the balance of the account on the worksheet.
D) the balance that will appear on the balance sheet.

15) The accounts that appear on a post closing trial balance are:
A) assets, liabilities, withdrawals, and revenues.
B) revenues, expenses, and capital.
C) assets, liabilities, and expenses.
D) assets, liabilities, and capital.

16) Which of the following accounts are closed to the owner's capital account?
A) liabilities and assets
B) the owner's withdrawals account and liabilities
C) income summary and the owner's withdrawals account
D) revenues, expenses, and liabilities

Answer 1

1-D)multicolumn document used by accountants to aid in the preparation of the financial statements.

2-A) a debit and credit column for a statement of owner's equity.

3-B) a net loss for the company.

4-C) owner withdrawals

5-C) $3,300 credit.

6-A) net income of $3,400.

7-C) the adjusted trial balance debit column and credit column do not equal.

8-C) balance sheet credit column and adjusted trial balance credit column of a worksheet.

9-D) is closed to the capital account.

10-A) is a type of temporary account.

11-A) a key element of accrual accounting.

12-C) $2,900 credit

13-D) capital account.

14-D) the balance that will appear on the balance sheet.

15-D) assets, liabilities, and capital.

16-C) income summary and the owner's withdrawals account