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College Accounting

John Price, University of North Texas
M. David Haddock, Chattanooga State Technical Comm. College
Horace Brock, University of North Texas
Connie Hahn, Southern Alberta Institute of Technology
Traven Reed, Canadore College

Completing the Worksheet for a Merchandising Business

True/False Questions


1	The Uncollectible Accounts Expense account is usually adjusted to reflect the actual amount of loss from uncollectible accounts during the preceding period.
		A)	True
		B)	False


2	Under the accrual basis of accounting, purchases are recorded when the title to the goods passes to the buyer.
		A)	True
		B)	False


3	At the time of receipt, most income from subscriptions is wholly unearned.
		A)	True
		B)	False


4	The Unearned Subscription Income account would appear in the Assets section of the balance sheet.
		A)	True
		B)	False


5	At the end of an accounting period, an adjustment is needed to record as an expense any part of an asset that has been used up or has expired.
		A)	True
		B)	False


6	Worksheet adjustments that have not been entered in the accounts should not be included in financial statements prepared from the worksheet
		A)	True
		B)	False


7	On the trial balance, the Store Supplies account shows a debit balance of $300. A physical count showed supplies on hand of $80. The adjusting entry includes debit of $80 to the Store Supplies Expense account.
		A)	True
		B)	False


8	Office or store supplies that have been paid for in cash do not need any adjusting entries.
		A)	True
		B)	False


9	A basic rule for extending items from the Trial Balance section of the worksheet is that debit balances are always extended to credit columns.
		A)	True
		B)	False


10	The net income for the business is entered as a debit entry in the Balance Sheet section and as a credit entry in the Income Statement section of the worksheet.
		A)	True
		B)	False


11	The amounts entered in the Adjusted Trial Balance columns are determined by combining the adjustment figures (if any) with the original trial balance figures.
		A)	True
		B)	False

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