25 At the end of the fiscal year, the usual adjusting entry to prepaid insurance to record expired insurance was omitted Which of the following statements is true a total assets at the end of the year will be understated b insurance expense will be overstated c stockholders' equity at the end of the year will be understated d net income for the year will be overstated 26 An account is said to have a debit balance if a there are more entries on the credit side than on the debit side b there are more entries on the debit side than on the credit side c the first entry of the accounting period was posted on the debit side d the amount of the debits exceeds the amount of the credits 27 The chart of accounts is designed to a summarize the transactions and determine ending account balances b alphabetize the accounts to make reading easier for financial statement users c meet the information needs of a company's managers and other users of its financial statements d organize accounts in order of dollar amount to simplify the accounting information for users Use the adjusted trial balance for Stockton Company below to answer the questions that follow Stockton Company Adjusted Trial Balance December 31 Cash 7,530 Accounts Receivable 2,100 Prepaid Expenses 700 Equipment 13,700 Accumulated Depreciation 1,100 Accounts Payable 1,900 Notes Payable 4,300 Common Stock 1,000 Retained Earnings 12,940 Dividends 790 Fees Earned 9,250 Wages Expense 2,500 Rent Expense 1,960 Utilities Expense 775 Depreciation Expense 250 Miscellaneous Expense 185 Totals 30,490 30,490 28 Determine the total assets a $24,030 b $22,930 c $16,830 d $25,130 29 Prior to the adjusting process, accrued revenue has a been earned and cash received b not been recorded as revenue but cash has been received c been earned and not recorded as revenue d not been earned but recorded as revenue 30 Which of the following accounts is a liability a Accounts Receivable b Accounts Payable c Wages Expense d Service Revenue 31 When the end of period spreadsheet is complete, the adjustment columns should have a total debits greater than total credits if a net loss was incurred b total debits are equal to total credits c total credits greater than total debits if a net income was earned d total debits greater than total credits if a net income was earned

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25. At the end of the fiscal year, the usual adjusting entry to prepaid insurance to record expired insurance was omitted. Which of the following

25. At the end of the fiscal year, the usual adjusting entry to prepaid insurance to record expired insurance was omitted. Which of the following statements is true?

	a.	total assets at the end of the year will be understated.
	b.	insurance expense will be overstated
	c.	stockholders' equity at the end of the year will be understated.
	d.	net income for the year will be overstated.

26. An account is said to have a debit balance if

	a.	there are more entries on the credit side than on the debit side
	b.	there are more entries on the debit side than on the credit side
	c.	the first entry of the accounting period was posted on the debit side
	d.	the amount of the debits exceeds the amount of the credits

27. The chart of accounts is designed to

	a.	summarize the transactions and determine ending account balances
	b.	alphabetize the accounts to make reading easier for financial statement users
	c.	meet the information needs of a company's managers and other users of its financial statements
	d.	organize accounts in order of dollar amount to simplify the accounting information for users

Use the adjusted trial balance for Stockton Company below to answer the questions that follow.

Stockton Company
Adjusted Trial Balance
December 31

Cash	7,530
Accounts Receivable	2,100
Prepaid Expenses	700
Equipment	13,700
Accumulated Depreciation		1,100
Accounts Payable		1,900
Notes Payable		4,300
Common Stock		1,000
Retained Earnings		12,940
Dividends	790
Fees Earned		9,250
Wages Expense	2,500
Rent Expense	1,960
Utilities Expense	775
Depreciation Expense	250
Miscellaneous Expense	185
Totals	30,490	30,490

28. Determine the total assets.

	a.	$24,030
	b.	$22,930
	c.	$16,830
	d.	$25,130

29. Prior to the adjusting process, accrued revenue has

	a.	been earned and cash received
	b.	not been recorded as revenue but cash has been received
	c.	been earned and not recorded as revenue
	d.	not been earned but recorded as revenue

30. Which of the following accounts is a liability?

	a.	Accounts Receivable
	b.	Accounts Payable
	c.	Wages Expense
	d.	Service Revenue

31. When the end-of-period spreadsheet is complete, the adjustment columns should have

	a.	total debits greater than total credits if a net loss was incurred
	b.	total debits are equal to total credits
	c.	total credits greater than total debits if a net income was earned
	d.	total debits greater than total credits if a net income was earned