Chapter 4 Quiz
Objectives:
1. Adjustments: prepaid rent, office supplies, depreciation on equipment, and accrued
salaries.
2. Preparation of adjusted trial balance on the worksheet.
3. The income statement and balance sheet sections of the worksheet.
4. Preparing financial statements from the worksheet.
1.
2.
3.
4.
5.
TRUE/FALSE
The worksheet is not a formal statement.
Original cost of equipment is not adjusted on the worksheet when the adjusting entries are recorded.
The amount of supplies left (on hand) would be shown in the adjustment columns of the worksheet.
Accumulated depreciation is a liability account.
A worksheet is used to help prepare the financial statements.
MULTIPLE CHOICE
6. A contra-asset is:
a) in reality a liability.
b) an asset with a debit balance.
c) an account with an opposite balance of a normal asset.
d) an account that increases the asset.
7. Which of the following accounts would most likely not need to be adjusted at the end of the year?
a) Office Supplies
b) Prepaid Rent
c) Accumulated Depreciation
d) Cash
8. The first step in preparing the worksheet is to:
a) prepare the trial balance columns.
b) complete the adjustments columns.
c) extend the totals to the Income Statement and Balance Sheet columns.
d) prepare the adjusted trial balance columns.
9. The adjusted trial balance on the worksheet shows Accumulated Depreciation, $5,000, and Depreciation
Expense, $1,500. What was the balance in the Accumulated Depreciation account before the adjustment?
a) $1,500
b) $5,000
c) $3,000
d) $1,000
10. What types of accounts appear in the balance sheet section of the worksheet?
a) Revenues and expenses
b) Assets and liabilities
c) Only contra accounts
d) Assets and revenues
Chapter 4
TRUE/FALSE
1.
2.
3.
4.
5.
ANSWER: True
ANSWER: True
ANSWER: False
ANSWER: False
ANSWER: True
(L.O. 1)
(L.O. 1)
(L.O. 1)
(L.O. 1)
(L.O. 1)
MULTIPLE CHOICE
6.
7.
8.
9.
10.
ANSWER: c
ANSWER: d
ANSWER: a
ANSWER: c
ANSWER: b
(L.O. 1)
(L.O. 1)
(L.O. 2)
(L.O. 1)
(L.O. 1)
Chapter 4