4.3   Learning Objective 4-3

 

1) The capital balance amount shown in the balance sheet column of the worksheet represents:

A) the beginning capital plus net income.

B) the beginning capital plus net income less withdrawal.

C) the beginning capital less withdrawals.

D) the beginning capital plus any investments to capital that occurred during the period.

2) On a worksheet, the income statement debit column totals $10,200 and the credit column totals $10,000. Which of the following statements is correct?

A) The company had a net loss of $200.

B) The company had a net income of $200.

C) The company’s revenues were greater than expenses.

D) None of the above are correct.

 

3) On a worksheet, the balance sheet debit column total is $1,000 and the credit column total is $2,000. Which of the following statements is correct?

A) The company had a net income of $1,000.

B) The company had a loss of $1,000.

C) The company’s expenses were greater than revenues.

D) None of the above are correct.

 

4) Withdrawals would most likely be found in which column of the worksheet?

A) Income statement

B) Balance sheet

C) Adjustments

D) Withdrawals would not appear on the work sheet.

 

5) Which of the following accounts would appear on the balance sheet?

A) Accumulated Depreciation

B) Depreciation Expense

C) Fees Earned

D) None of these are correct.

6) Which of the following accounts would appear on the Income Statement?

A) Accumulated Depreciation

B) Rent Expense

C) Equipment

D) Cash

 

7) The accumulated depreciation will appear in which of the following worksheet statement columns?

A) The Income Statement debit

B) The Income Statement credit

C) The Balance Sheet debit

D) The Balance Sheet credit

 

8) When Income Statement credits exceed the debits on the worksheet:

A) a net loss has occurred.

B) a net income has occurred.

C) an error has been made.

D) Not enough information has been provided.

 

9) All of the following are reasons to adjust the account balances at the end of the period, except:

A) to accurately report the assets on the balance sheet.

B) to report all revenues earned during the period.

C) to report all expenses incurred during the period.

D) to correct any errors made during the period.

 

10) On the worksheet, the difference between the debits and credits in the income statement columns would be the net income or net loss for the period.

 

 



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