1. Which of the following need not be completed separately if a worksheet is prepared? A. A...
Question:
1. Which of the following need not be completed separately if a worksheet is prepared?
A. A trial balance
B. An income statement
C. A balance sheet
D. A statement of owner's equity
2. When a trial balance is in balance,
A. Adjusting entries are not required.
B. The general ledger is free of errors.
C. The debit account balances equal the credit account balances.
D. The company has earned a net income.
3. Equipment cost $36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight-line method, monthly depreciation will be
A. $600.
B. $720.
C. $60.
D. $12.
4. On a worksheet, the adjusting entry to account for depreciation of equipment consists of
A. A debit to Depreciation Expense and a credit to Equipment.
B. A debit to Depreciation Expense and a credit to Accumulated Depreciation.
C. A debit to Equipment and a credit to Accumulated Depreciation.
D. A debit to Accumulated Depreciation and a credit to Equipment.
5. If the prepaid expenses are not adjusted, assets on the balance sheet
A. Will be overstated.
B. Will be understated.
C. Will not be affected.
D. May be either overstated or understated.