51) Historical cost is the same as:

A) residual value.

B) original cost.

C) accumulated depreciation.

D) book value.

 

52) The accrual of an expense was not recorded. This would:

A) overstate expenses and overstate liabilities.

B) overstate expenses and understate liabilities.

C) understate expenses and overstate liabilities.

D) understate expenses and understate liabilities.

53) Depreciation of equipment was recorded twice this period. This would:

A) overstate expenses and overstate assets.

B) overstate expenses and understate assets.

C) understate expenses and overstate assets.

D) understate expenses and understate assets.

 

54) Adjusting the supplies account will:

A) decrease the total assets and increase the total expenses.

B) decrease the total assets and decrease the total expenses.

C) increase the total assets and increase the total expenses.

D) increase the total assets and decrease the total expenses.

 

55) It’s the end of the accounting period and no electric bill has been received (but the expense has been incurred); you should record an entry that:

A) increases the total assets and increases the total expenses.

B) decreases the total assets and increases the total expenses.

C) increases the total liabilities and increases the total expenses.

D) decreases the total liabilities and increases the total expenses.

 

56) The entry to record the expiration of part of the prepaid rent will:

A) decrease total assets and increase total expenses at the end of the month.

B) decrease total assets and decrease total expenses at the end of the month.

C) increase total assets and increase total expenses at the end of the month.

D) increase total assets and decrease total expenses at the end of the month.

57) The depreciation of equipment will require an adjustment that results in:

A) total assets increasing and total expenses increasing.

B) total assets increasing and total expenses decreasing.

C) total assets and expenses decreasing.

D) total assets decreasing and total expenses increasing.

 

58) Which of the following would cause a liability to be credited and an expense to be debited?

A) Recording the adjustment for the expiration of rent

B) Recording the depreciation of equipment

C) Recording the accrual of salaries incurred

D) Purchasing equipment

 

59) Which of the following would cause a contra-asset to be credited and an expense debited?

A) Recording an accrued expense

B) Recording the consumption of supplies

C) Recording the building depreciation

D) All of the above would have that effect.

 

60) Which of the following would cause total assets to decrease and total expense to increase?

A) Recording the depreciation of equipment

B) Recording the consumption of supplies

C) Recording the expiration of prepaid rent

D) All of the above would have that effect

 

 



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