111. What effect will this adjustment have on the accounting records?
112. What effect will this adjusting journal entry have on the accounting records?
113. What effect will the following adjusting journal entry have on the accounting records?
114. How will the following adjusting journal entry affect the accounting equation?
115. Which of the following is not true regarding depreciation?
A. Depreciation allocates the cost of a fixed asset over its estimated life.
B. Depreciation expense reflects the decrease in market value each year.
C. Depreciation is an allocation not a valuation method.
D. Depreciation expense does not measure changes in market value.
116. The account type and normal balance of Prepaid Expense is
A. revenue, credit
B. expense, debit
C. liability, credit
D. asset, debit
117. The account type and normal balance of Unearned Revenue is
A. revenue, credit
B. expense, debit
C. liability, credit
D. asset, debit
118. Which of the following is an example of an accrued expense?
A. Salary owed but not yet paid
B. Fees received but not yet earned
C. Supplies on hand
D. A two-year premium paid on a fire insurance policy
119. The net book value of a fixed asset is determined by
A. original cost less accumulated depreciation
B. original cost less depreciation expense
C. original cost less accumulated depreciation plus depreciation expense
D. original cost plus accumulated depreciation
120. The balance in the supplies account, before adjustment at the end of the year is $725. The proper adjusting entry if the amount of supplies on hand at the end of the year is $300 would be
A. debit Supplies, $300; credit Supplies Expense, $300
B. debit Supplies Expense, $425; credit Supplies, $425
C. debit Supplies Expense, $300; credit Supplies, $300
D. debit Supplies, $425; credit Supplies Expense, $425