1. .04.004 The type of account and normal balance of Accumulated Depreciation are a. contra asset, credit. b. asset, credit. c. asset, debit. d. liability, credit. e. contra asset, debit. 2. MC.04.013 The amount of net income will appear on the debit side of the Income Statement columns on a work sheet, a. if total assets exceeded total liabilities for the period. b. if total revenue exceeded total expenses for the period. c. if total expenses exceeded total revenue for the period. d. if net income exceeds the owner's withdrawais. e. if withdrawals have been made during the period. 3. MC. 04.018 Which of the following entries contains both a balance sheet account and an income statement account? a. A contra entry b. An adjusting entry c. A mixed entry d. A matching entry e. An accumulated entry 4. MC.04.023 If an accountant fails to make an adjusting entry at the end of a fiscal period to record expired insurance, the omission will cause a. total revenue to be understated. b. liabilities to be understated. c. liabilities to be overstated. d. total expenses to be understated. e. total assets to be understated. 5. MC.04.026 Which of the following would be considered a fiscal year? a. January 1, 20- to March 31,20- b. April 1, 20- to March 31, 20- c. October 1, 20- to May 31, 20- d. None of these listed answers are correct. 6. MC. 04.034 Which of the following is correct concerning the work sheet? a. Liabilities are shown as credits in the income statement columns. b. Capital is shown as a credit in the balance sheet columns. c. Revenues are shown as credits in the balance sheet columns. d. Assets are shown as credits in the adjusted trial balance columns. 7. .04.041 Dowdy Co. has equipment with a cost of $30,000 and accumulated depreciation of $22,000. What is the book value of the equipment? a. $52,000 b. $22,000 c. $30,000 d. $8,000 8. MC. 04,050 After preparing the work sheet, adjusting entries must be recorded in the and then posted to the a. general journal; general ledger b. general journal; financial statements c. trial balance; financial statements d. None of these listed answers are correct. 9. MC.04.051 Which of the following principles ensures that the expenses for one time period are matched up with the related revenues for the same time period? a. The contra principle b. The depreciation principle c. The mixed account principle d. The matching principle 10. MC. 04.058 If a company has more than one revenue account, the company should a. prepare two separate Income Statements. b. show each revenue account separately on the Income Statement. c. combine the revenue accounts on the Income Statement. d. None of these listed answers are correct. 11. MC. 04.059 Any additiona! investments by the owner should be shown as a(n) a. subtraction on the Statement of Owner's Equity. b. subtraction on the Income Statement. c. addition on the Income Statement. d. addition on the Statement of Owner's Equity. 12. MC. 05.001 Which of the following sequences of documents or records describes the proper sequence in the accounting cycle? a. Financial statements, journal, ledger, source documents, work sheet b. Work sheet, source documents, financial statements, ledger, journal c. Source documents, journal, ledger, work sheet, financial statements d. Source documents, ledger, journal, work sheet, financial statements e. Source documents, work sheet, journal, ledger, financial statements 13. MC.05.012 Closing entries are prepared to close the https:liv2. cengagenow. com/ilmicreateAgsignmentprintAssignment.do?dssignmentld=1058.3458answerKsy=false 10152018 CengageNowv2 [ Online teaching and learning resource from Cengage Learning a. owner's Capital account. b. accumulated depreciation accounts. c. temporary accounts. d. wages Payable account. e. payables and receivables. 14. MC. 05.015 The most efficient sources for closing entry information are the a. work sheet and financial statements. b. gencral ledger and general joumat. c. general ledger and work sheet. d. general journal and work sheet. e. balance sheet and income statement. 15. MC.05.019 The post-closing trial balance is best prepared from the a. general ledger. b. financial statements. c. general ledger and the financial statements. d. income statement. e. general journal and the general ledger. 16. MC.05.026 Assume a company has a net income that exceeds the owner's drawing for the current year. The owner's Capital a. will remain the same as the beginning balance. b. will have a zero balance after the closing entries are completed. c. It is impossible to tell with the information provided. d. will decrease. e. will increase. 17. MC. 05.029 The last step in the accounting cycie is to a. journalize and post the adjusting entries. b. complete the work sheet. c. prepare a post-closing trial balance. d. prepare a trial balance. 18. MC.05.032 The Income Summary account would be reported on which financial statement? a. Income Statement b. Balance Sheet c. Statement of Owner's Equity d. None of these choices are correct. The Income Summary account is not reported on a financial statement. 19. MC. 05.048 When using the work sheet to prepare closing entries, which of the following statement is correct? https:I/v2.cengagenow.com/ilrn/createAssignment/printAssignment.do?assignmentld =1058345& answerKey=false 3/4 10/5/2018 CengageNOWv2 | Online teaching and learning resource from Cengage Learning a. You should use all balances listed in the income statement columns. b. You should use all balances listed in the balance sheet columns. c. You should use all balances listed in the balance sheet columns and the income statement columns. d. None of these listed answers are correct. 20. MC.05.054 The they are paid in cash. requires that revenue is recorded when it is received in cash and expenses are recorded when a. hybrid basis of accounting b. accrual basis of accounting c. cash basis of accounting d. GAAP basis of accounting 21. MC.05.056 Yellow Co. makes a sale to a customer in January but does not receive payment until March. Yellow Co. records the sale in January. Which method of accounting is Yellow Co. using? a. hybrid basis of accounting b. consolidated basis of accounting c. accrual basis of accounting d. cash basis of accounting