The periodic expense created by allocating the cost of plant and equipment to the periods in which

they are used, representing the expense of using the assets, is called:

Accumulated depreciation.
The matching principle.
An accrued account.
Depreciation expense.
A contra account.

The broad principle that requires expenses to be reported in the same period as the revenues that
were earned as a result of the expenses is the:

Time period principle.

Cash basis of accounting.
Cost principle.
Expense recognition (Matching) principle.
Recognition principle.

A company had $7,000,000 in net income for the year. Its net sales were $15,200,000 for the same
period. Calculate its profit margin.

85.4%.
46.1%.
53.9%.
217.1%.
117.1%.

The adjusting entry at the end of an accounting period to record the unpaid salaries of employees for
work provided is:

Debit Unpaid Salaries and credit Salaries Payable.

Debit Salaries Payable and credit Salaries Expense.
Debit Cash and credit Salaries Expense.
Debit Salaries Expense and credit Salaries Payable.
Debit Salaries Expense and credit Cash.

Unearned revenue is reported in the financial statements as:

A liability on the balance sheet.

An asset on the balance sheet.
An unearned revenue on the income statement.
A revenue on the balance sheet.

This study source was downloaded by 100000811406039 from CourseHero.com on 12-14-2021 22:24:02 GMT -06:00

https://www.coursehero.com/file/26844585/Bus-1A-Test-ch3-Hensleydocx/
 A financing activity on the statement of cash flows.

Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are
all examples of:

Asset accounts.
Items that require adjusting entries.
Income statement accounts.
Asset and equity.
Items that require contra accounts.

Profit margin is defined as:

Net sales divided by net income.

Net income divided by assets.
Net sales divided by assets.
Net income divided by net sales.
Revenues divided by net sales.

Incurred but unpaid expenses that are recorded during the adjusting process with a debit to an
expense and a credit to a liability are:

Prepaid expenses.
Unearned expenses.
Net expenses.
Intangible expenses.
Accrued expenses.

The total amount of depreciation recorded against an asset over the entire time the asset has been
owned:

Is shown on the income statement of the final period.

Is only recorded when the asset is disposed of.
Is referred to as an accrued asset.
Is referred to as depreciation expense.
Is referred to as accumulated depreciation.

A company purchased a new delivery van at a cost of $45,000 on July 1. The truck is estimated to
have a useful life of 6 years and a salvage value of $3,000. The company uses the straight-line
method of depreciation. How much depreciation expense will be recorded for the van during the first
year ended December 31?

This study source was downloaded by 100000811406039 from CourseHero.com on 12-14-2021 22:24:02 GMT -06:00

https://www.coursehero.com/file/26844585/Bus-1A-Test-ch3-Hensleydocx/
 $7,000.
$4,000.
$6,500.
$3,500.
$3,250.

An account linked with another account that has an opposite normal balance and is subtracted from
the balance of the related account is a(n):

Accrued revenue.
Accrued expense.
Contra account.
Adjunct account.
Intangible asset.

On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin
immediately. What is the amount of insurance expense that would appear on the company's income
statement for the first year ended December 31?

rev: 02_24_2015_QC_CS-8932

$18,000.
$5,270.
$750.
$6,000.
$6,750.

The difference between the cost of an asset and the accumulated depreciation for that asset is
called

Depreciation Value.
Prepaid Depreciation.
Book Value.
Unearned Depreciation.
Depreciation Expense.

Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical
count of the supplies showed $105 of unused supplies available. The required adjusting entry is:

Debit Office Supplies $254 and credit Office Supplies Expense $254.
Debit Office Supplies Expense $105 and credit Office Supplies $105.

This study source was downloaded by 100000811406039 from CourseHero.com on 12-14-2021 22:24:02 GMT -06:00

https://www.coursehero.com/file/26844585/Bus-1A-Test-ch3-Hensleydocx/
 Debit Office Supplies $105 and credit Office Supplies Expense $105.
Debit Office Supplies Expense $254 and credit Office Supplies $254.
Debit Office Supplies $105 and credit Supplies Expense $254.

Adjusting entries:

Affect cash accounts.

Affect only income statement accounts.
Affect only equity accounts.
Affect only balance sheet accounts.
Affect both income statement and balance sheet accounts.

https://quizlet.com/144033254/acc-201-ch-3-practice-questions-flash-cards/

This study source was downloaded by 100000811406039 from CourseHero.com on 12-14-2021 22:24:02 GMT -06:00

https://www.coursehero.com/file/26844585/Bus-1A-Test-ch3-Hensleydocx/
Powered by TCPDF (www.tcpdf.org)