1. If the income statement debit and credit columns are not equal after adding the respective columns, a. an error has been made. b. the company generated a profit. c. the company incurred a loss. d. the liabilities must exceed the assets. e. the company either generated a profit or incurred a loss. 2. The Income Statement Debit column of the worksheet contains a. a. expense account balances. c. asset account balances. b. b. liability account balances. d. revenue account balances. 3. In which columns of a worksheet would the adjusted balance of Accumulated Depreciation appear? a. Adjusted Trial Balance Credit, Balance Sheet Debit b. Trial Balance Credit, Adjustments Credit, Adjusted Trial Balance Credit, and Balance Sheet Credit c. Adjusted Trial Balance Credit, Income Statement Credit d. Adjusted Trial Balance Debit, Balance Sheet Debit e. Trial Balance Debit, Adjusted Trial Balance Debit 4. The owner's Capital account is found on the a. trial balance credit column and income statement debit column of a worksheet. b. trial balance credit column, adjusted trial balance credit column, and balance sheet credit column of a worksheet. c. trial balance credit column, adjustments credit column, adjusted trial balance credit column, and balance sheet credit column of a worksheet. d. trial balance debit column, adjustments debit column, adjusted trial balance credit column, and income statement credit column of a worksheet. 5. The amount of profit will appear on the debit side of the Income Statement columns on a worksheet,

a. if total revenue exceeded total expenses for the period. b. if withdrawals have been made during the period. c. if total assets exceeded total liabilities for the period. d. if total expenses exceeded total revenue for the period. e. if profit exceeds the owner's withdrawals. 6. If total credits exceed total debits in the Balance Sheet columns of a worksheet, a. a mistake has been made. b. a profit has occurred. c. a loss has occurred. d. no conclusion can be drawn until the closing entries have been made. e. assets exceed liabilities. 7. Which situation indicates a loss on the income statement? a. Total debits equal total credits b. Total credits exceeds total debits c. Total debits exceed total credits d. None of the above.

8. Failure to record the entry for accrued salaries results in a. salaries payable being overstated. c. profit being understated. b. salaries expense being understated. d. total assets being understated. e. total assets being overstated. 9. The balance in the Prepaid Insurance account before adjustment at the end of the year is P7,200, which represents twelve months' insurance purchased on December 1. The adjusting entry required on Dec. 31, 2012 is a. debit Insurance Expense, P600; credit Prepaid Insurance, P600. b. debit Insurance Expense, P6,600; credit Prepaid Insurance, P6,600. c. debit Prepaid Insurance, P600; credit Insurance Expense, P600. d. debit Prepaid Insurance, P7,200; credit Insurance Expense, P7,200. 10. A business pays weekly salaries of P200,000 on Friday for a five-day week ending on that day. If the fiscal period ends on Wednesday, the adjusting entry is a. debit Salaries Expense, P120,000; credit Withdrawals, P120,000. b. debit Salaries Expense, P120,000; credit Salaries Payable, P120,000. c. debit Withdrawals, P120,000; credit Salaries Payable, P120,000. d. debit Salaries Payable, P120,000; credit Salaries Expense, P120,000. e. none of these.