Unformatted text preview: Matching principle (p. 3 Natural business year (p. E) Qwﬁng £2618 (13- M) Permanent accounts (p. 106) Plantassets(p. g) Post—closing trial balance (p. 109) WG-ﬁ Proﬁt magg'g (p. m) Pro forma ﬁnancial statements (p. m) Straight-line dgpreciation method (p. E) Temmﬂ accounts (p. 106) Time E'od assumption (p. Q) Unadjusted trial balance (p. 103) Unclassiﬁed balance sheet (p. 110) Unear'ned revenues (p. @ Working m (p. @ Work sheet (1). m) Multiple Choice Quiz: Answers on p. m: mhhe.com/wildFAF2e Additional Quiz Qutstions are available at the book's Website. l. A company forgot to record accrued and unpaid employee wages of $350,” at period—end. This oversight would
a. Understate net income by $350,“.
b. Overstate net income by $350,000.
e. Have no effect on net income.
d. Overstate assets by $350,043).
e. Understate assets by $350,”. 2. Prior to recording adjusting entries, the Supplies account has a $4.50 debit balance. A physical count of supplies shows $125 of unused supplies still available. The required
adjusting entry is 21. Debit Supplies $125; Credit Supplies Expense $125.
b. Debit Supplies $325; Credit Supplies Expense $325.
e. Debit Supplies Expense $325; Credit Supplies $325.
d. Debit Supplies Expense $325; Credit Supplies $125.
e. Debit Supplies Expense $125; Credit Supplies $125. 3. On May 1, 2009, a two—year insurance policy was purchased for $24,000 with coverage to begin immediately. What is the amount ofinsurance expense that appears on the
company's income statement for the year ended December 31, 2009? a. $41”) ...
View Full Document
- Spring '09