Question

15) Which account will appear on an After-Closing Trial Balance? A) Prepaid Expenses B) Retained Earnings, at the beginning of the period C) Dividends D) Sales 16) 16) Only two adjustments appear in the adjustments column of a worksheet for Winona Mfg: one to record $8.000 depreciation of factory equipment, and the other to record the use of $1,500 of prepaid insurance. If the Trial Balance column totals are $145,380, what are the totals of the Adjusted Trial Balance columns? A) $154,880 B) $145,380 C) $152,880 D) $153,380 17 B 17) The basic purpose of bookkeeping is to: A) Develop the types of information best-suited to specific managerial decisions. (B) Record the financial transactions of an economic entity. C) Determine the taxable income of individuals and business entities. D) Provide financial information about an economic entity. 18) 18) On the statement of financial position, how are assets and liabilities normally presented? A) Assets are presented in order of profitability: liabilities are presented in order of liquidity. B) Assets are presented in order of liquidity: liabilities are presented in order of profitability C) Assets are presented in their order of permanence; liabilities are presented in the order in which they become due. D) Assets are presented in the order in which they become due; liabilities are presented in their order of permanence. 19) Which of the following accounts normally contain a debit balance? A) Revenue B) Owners' equity D) Liability C) Asset

Answer 1

15	A		Prepaid expeneses will appear after - closing trial balance as it is a balance sheet item. Retained earnings at. Beginning of year will be adjusted. Dividend and sales accounts will be closed.
16	D	$153,380	Depreciation(debit) will be debited by 8000 and accumulated depreciation will be credited. This will increase the trial balance total by 8000. Expense booking from prepaid insurance will not change the trial balance total as expense will increase the debit side by 1500 and decrease in prepaid asset will be from same amount.
17	B	Record the financial transactions of an economic entity.
18	C	Assets are preseneted in their order of permanence; liabilities are presented in the order in which they become due.
19	C	Assets and expenses have debit balance and Libility, income and captial has credit balance generally.