1, Which of the following isan example of accrued revenue?

: snow removal services that has been provided and paid on thesame day

: an agreement that has been signed for snow removal servicesfor the next three months

: snow removal services that have been provided but have notbeen billed or paid

: snow removal services that have been paid for three months inadvance

2, The difference betweenthe balance of a fixed asset account and the related accumulateddepreciation account is termed

: contra asset

: book value

: market value

: historical cost

3, What effect will this adjustment have on the accountingrecords?

Unearned Revenue	6,375
Fees Earned		6,375

: decrease liabilities

: increase revenues reported for the period

: increase net income

: All of these choices are true

4, The net income reportedon the income statement is $58,000. However, adjusting entries havenot been made at the end of the period for supplies expense of$2,200 and accrued salaries of $1,300. Net income, as corrected,is

: $55,800

: $54,500

: $56,700

: $58,000

5, For the year endingDecember 31, Orion, Inc. mistakenly omitted adjusting entries for$1,500 of supplies that were used, (2) unearned revenue of $4,200that was earned, and (3) insurance of $5,000 that expired. For theyear ending December 31, what is the effect of these errors onrevenues, expenses, and net income?

: expenses are overstated by $6,500

: net income is overstated by $2,300

: revenues are overstated by $4,200

: expenses are understated by $3,500

6, When preparing thestatement of owner's equity, the beginning capital balance canalways be found

: in the statement of cash flows

: in the general ledger

: in the Income Statement columns of the work sheet

: in the Balance Sheet columns of the work sheet

7, The statement of owner'sequity should be prepared

: after the income statement and before the balance sheet

: before the income statement and after the balance sheet

: before the income statement and balance sheet

: after the income statement and balance sheet

8,

Use the following end-of-period spreadsheet below to answer thequestion that follow.

FinleyCompany End-of-Period Spreadsheet For the Year Ended December 31
	Adjusted Trial Balance		IncomeStatement		BalanceSheet
Account Title	Debit	Credit	Debit	Credit	Debit	Credit
Cash	48,000				48,000
Accounts Receivable	18,000				18,000
Supplies	6,000				6,000
Equipment	57,000				57,000
Accumulated Depreciation		18,000				18,000
Accounts Payable		25,000				25,000
Wages Payable		6,000				6,000
C. Finley, Capital		33,000				33,000
C. Finley, Drawing	3,000				3,000
Fees Earned		155,000		155,000
Wages Expense	63,000		63,000
Rent Expense	27,000		27,000
Depreciation Expense	15,000		15,000
Totals	237,000	237,000	105,000	155,000	132,000	82,000
Net Income (Loss)			50,000			50,000
			155,000	155,000	132,000	132,000

The journal entry to close revenues would be:

: a.debit C. Finley, Capital, $155,000; credit Fees Earned,$155,000

: b.debit Income Summary, $155,000; credit Fees Earned,$155,000

: c.credit Fees Earned, $155,000; credit C. Finley, Capital,$155,000

: d.debit Fees Earned, $155,000; credit Income Summary,$155,000

9,

Which of these accounts would appear in the Balance Sheetcolumns of the end-of-period spreadsheet?

: Consulting Revenue

: Prepaid Insurance

: Rent Expense

: Fees Earned

10,

After all of the account balances have been extended to theBalance Sheet columns of the work sheet, the totals of the debitand credit columns are $36,755 and $32,735, respectively. What isthe amount of net income or net loss for the period?

: $36,755 net loss

: $4,020 net income

: $4,020 net loss

: $32,735 net income