Question 1

Match the terms with the definitions.
-The amount an item can be sold for under normal economic conditions.

Accepted Answer

Market value refers to the amount an item can be sold for under normal economic conditions.

Question 2

Match the terms with the definitions.
-A depreciation method in which the depreciable cost is divided by the estimated useful life.

Accepted Answer

The straight-line method of depreciation divides the depreciable cost of an asset by its estimated useful life to calculate annual depreciation expense.

Question 3

Match the terms with the definitions.
-A method of matching an asset's original cost against the revenues produced over its useful life.

Accepted Answer

Depreciation is the process of allocating the cost of an asset over its useful life, which matches the asset's cost against the revenues it generates.

Question 4

Match the terms with the definitions.
-The period of time that an asset is expected to help produce revenues.

Accepted Answer

Useful life refers to the duration over which an asset is expected to be useful in generating revenue for a business.

Question 5

Match the terms with the definitions.
-Journal entries made at the end of the accounting period to reflect changes in account balances that are not the direct result of an exchange with an outside party.

Accepted Answer

Adjusting entries are made to update the accounts to their correct balances, reflecting accruals and deferrals that have occurred but are not yet recorded in the accounts due to timing differences, not because of direct transactions with external parties.

Question 6

Match the terms with the definitions.
-The third pair of amount columns on the work sheet.Used to prove the equality of the debits and credits in the general ledger accounts after making all end-of-period adjustments.

Accepted Answer

The correct term for the third pair of amount columns on a work sheet, used to prove the equality of the debits and credits in the general ledger accounts after making all end-of-period adjustments, is "Adjusted Trial Balance columns."

Question 7

Match the terms with the definitions.
-An account with a credit balance that is deducted from the related asset account on the balance sheet.

Accepted Answer

Contra-asset accounts have a credit balance that offsets the balance of a related asset account, which is reflected on the balance sheet.

Question 8

Match the terms with the definitions.
-Assets of a durable nature that will be used for operations over several years.

Accepted Answer

Plant assets are assets of a durable nature that will be used in operations over several years, including items like buildings, machinery, and equipment.

Question 9

Match the terms with the definitions.
-A twelve-month period for which financial reports are prepared.

Accepted Answer

A fiscal year is a twelve-month period that organizations use for accounting purposes and preparing financial reports.

Question 10

Match the terms with the definitions.
-The expected market value of an asset at the end of its useful life.

Accepted Answer

Salvage value is the expected market value of an asset at the end of its useful life.

Question 11

Match the terms with the definitions.
-A form used to pull together all of the information needed to enter adjusting entries and prepare the financial statements.

Accepted Answer

A work sheet is a tool used in accounting to gather all necessary information for adjusting entries and the preparation of financial statements, making choice R the correct match.

Question 12

Match the terms with the definitions.
-The cost of an asset that is subject to depreciation.

Accepted Answer

Depreciable cost refers to the cost of an asset that is subject to depreciation, which is the initial cost of the asset minus its salvage value.

Question 13

Match the terms with the definitions.
-A principle that requires assets to be recorded at their actual cost.

Accepted Answer

The historical cost principle requires assets to be recorded at their actual cost, reflecting the amount of money spent to acquire the asset at the time of purchase.

Quiz 5: Adjusting Entries and the Work Sheet

Match the terms with the definitions. -The amount an item can be sold for under normal economic conditions.

Match the terms with the definitions. -A depreciation method in which the depreciable cost is divided by the estimated useful life.

Match the terms with the definitions. -A method of matching an asset's original cost against the revenues produced over its useful life.

Match the terms with the definitions. -The period of time that an asset is expected to help produce revenues.

Match the terms with the definitions. -Journal entries made at the end of the accounting period to reflect changes in account balances that are not the direct result of an exchange with an outside party.

Match the terms with the definitions. -The third pair of amount columns on the work sheet.Used to prove the equality of the debits and credits in the general ledger accounts after making all end-of-period adjustments.

Match the terms with the definitions. -An account with a credit balance that is deducted from the related asset account on the balance sheet.

Match the terms with the definitions. -Assets of a durable nature that will be used for operations over several years.

Match the terms with the definitions. -A twelve-month period for which financial reports are prepared.

Match the terms with the definitions. -The expected market value of an asset at the end of its useful life.

Match the terms with the definitions. -A form used to pull together all of the information needed to enter adjusting entries and prepare the financial statements.

Match the terms with the definitions. -The cost of an asset that is subject to depreciation.

Match the terms with the definitions. -A principle that requires assets to be recorded at their actual cost.