1a. An adjustment for Prepaid Rent Expense would indicate:

A.

the amount originally paid.

B.

the amount of the beginning balance.

C.

the amount expired.

D.

the amount of the ending balance.

1b.The cost of an asset less accumulated depreciation equals:

A.

depreciation expense.

B.

depreciable value.

C.

residual value.

D.

book value.

1c Bob purchased a truck for $53,000 with a residual value of $26,000 and a life expectancy of 5 years; using

straightline

depreciation, the amount of the depreciation adjustment for the first year would be:

A.

$10,600.

B.

$5,300.

C.

$5,200.

D.

$5,400.

1d. Sally's Spices accrued and unpaid wages are $2,000. Which of the following is the required adjusting entry?

A.

Debit Salaries Payable, $2,000; credit Cash, $2,000

B.

Credit Salaries Expense, $2,000; debit Salaries Payable, $2,000

C.

Debit Cash, $2,000; credit Salaries Expense, $2,000

D.

Debit Salaries Expense, $2,000; credit Salaries Payable, $2,000

1e. Equipment with a cost of $152,000 has an accumulated depreciation of $59,000. What is the historical cost of the equipment?

A.

$59,000

B.

$152,000

C.

$93,000

D.

$211,000

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

A.

understate assets and understate assets.

B.

overstate expenses and overstate assets.

C.

understate expenses and overstate assets.

D.

overstate expenses and understate assets

1f. Which of the following would cause total assets to decrease and total expenses to increase?

A.

Recording the consumption of supplies

B.

Recording the expiration of Prepaid Rent Expense

C.

Recording the depreciation of equipment

D.

All of the above would have that effect