Quiz Of The Week: Worksheet Preparation
- 1.
The worksheet is a:
- A.
Formal statement issued to potential investors
- B.
Working paper often used by accountants to summarize adjusting entries
- C.
Replacement for the journal
- D.
Replacement for the formal income statement
Correct Answer
B. Working paper often used by accountants to summarize adjusting entriesExplanation
Working papers are often used by accountants to summarize adjusting entries. This is the longest answer. The worksheet is not a formal statement (A).Rate this question:
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- 2.
A net loss appears on the worksheet:
- A.
When revenue exceeds expenses
- B.
When expenses exceed revenues
- C.
Every time the adjusted trial balance columns do not balance after the initial totaling
- D.
Every time the income statement columns do not balance after the initial totaling
Correct Answer
B. When expenses exceed revenuesExplanation
When revenue exceeds expenses (A), you have a profit. A difference between the credit and debit columns of the adjusted trial balance columns (C) indicates an error in the preparation of the adjustments, not a profit or a loss. When the income statement columns do not balance (C), this indicates either a profit or a loss, depending upon which is higher, revenues or expense.Rate this question:
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- 3.
Which of the following accounts appears in the balance sheet columns of the worksheet:
- A.
Fees earned
- B.
Land
- C.
Supplies expense
- D.
Service revenue
Correct Answer
B. LandExplanation
Land is an asset account and belongs in the balance sheet columns. The other three options are revenue and expense and belong in the income statement.Rate this question:
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- 4.
The salaries payable account appears on the:
- A.
Balance sheet
- B.
Statement of owners’ equity
- C.
Income statement
- D.
Statement of cash flows
Correct Answer
A. Balance sheetExplanation
Salaries payable is a liability and belongs on the balance sheet.Rate this question:
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Current Version
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Oct 19, 2015Quiz Edited by
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Apr 04, 2014Quiz Created by
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