Business Accounting Final Exams Questions and Complete solutionDenning [Date] [Course title] The balance sheet reports - Correct Answer: Liabilities
The adjusting entry for the depreciation of office equipment for the period includes - Correct Answer: debiting Depreciation Expense-Office Equipment and crediting Accumulated Depreciation-Office Equipment
The third pair of columns on a 10-column work sheet prepared at the end of the period would be the - Correct Answer: Adjusted Trial Balance columns
Supplies originally cost $600, but only $150 worth of supplies were used this period. The adjusting entry would be - Correct Answer: debit supplies expense, $150; credit Supplies, $150.
When assets are recorded at original value, they are recorded under the - Correct Answer: historical cost
principle
The owner's capital account in the last two columns of the work sheet is not up-to-date because it does not yet include net income and withdrawals of the current period. - Correct Answer: True
The depreciation system used by many businesses for tax purposes is the - Correct Answer: Modified Accelerated Cost Recovery System
If a business records revenue when it is received and records the purchase of a building as an asset and makes adjustments to allocate the cost of the building over many accounting periods, the business accounting system is a (n) - Correct Answer: modified cash basis of accounting
The historical cost principle allows for assets to be recorded at actual cost. - Correct Answer: True
Plant assets provide benefits over a long period of time - Correct Answer: True
The second pair of columns on a 10-column work sheet prepared at the end of the period would be the -
Correct Answer: Adjustments columns
The adjusting entry for the depreciation of office equipment for the period includes - Correct Answer: debiting Depreciation Expense-Office Equipment and crediting Accumulated Depreciation-Office Equipment
The third pair of columns on a 10-column work sheet prepared at the end of the period would be the - Correct Answer: Adjusted Trial Balance columns
Supplies originally cost $600, but only $150 worth of supplies were used this period. The adjusting entry would be - Correct Answer: debit supplies expense, $150; credit Supplies, $150.
When assets are recorded at original value, they are recorded under the - Correct Answer: historical cost
principle
The owner's capital account in the last two columns of the work sheet is not up-to-date because it does not yet include net income and withdrawals of the current period. - Correct Answer: True
The depreciation system used by many businesses for tax purposes is the - Correct Answer: Modified Accelerated Cost Recovery System
If a business records revenue when it is received and records the purchase of a building as an asset and makes adjustments to allocate the cost of the building over many accounting periods, the business accounting system is a (n) - Correct Answer: modified cash basis of accounting
The historical cost principle allows for assets to be recorded at actual cost. - Correct Answer: True
Plant assets provide benefits over a long period of time - Correct Answer: True
The second pair of columns on a 10-column work sheet prepared at the end of the period would be the -
Correct Answer: Adjustments columns
