| A | B |
|---|
| A work is used to | plan adjustments and sort financial statement information |
| Preparing a work sheet at the end of each fiscal period is an application of the accounting concept | Accounting Period Cycle |
| The entry to journalize the adjustment for merchandise inventory when beginning Merchandise Inventory is $125,000 and ending Merchandise Inventory is $115,000 is to | debit Income Summary, $10,000 and credit Merchandise Inventory, $10,000 |
| The entry to journalize the adjustment for merchandise inventory when beginning Merchandise Inventory is $125,000 and ending Merchandise Inventory is $135,000 is to | credit Income Summary, $10,000 and debit Merchandise Inventory, $10,000 |
| Recording expenses in the fiscal period in which the expenses contribute to earning revenue is an application of the accounting concept | Marching Expenses with Revenue |
| The adjustment for federal income tax includes both an expense account and a | liability account |
| The total amount of depreciation expense that has been recorded since the purchase of a plant asset is called | accumulated depreciation |
| The account Federal Income Tax Expense is classified as an | expense |
| The liability account to record Federal Income Tax is called | Federal Income Tax Payable |
| The two accounts used in adjusting office supplies are | Supplies--Office and Supplies Expense--Office |
| The difference between an asset's account balance and its related contra account is called | book value |
| All accounts are listed on the work sheet regardless of whether they have a balance or not. (True or False) | True |
| Straight-line depreciation expense is calculated as the original cost of the plant asset divided by the years of estimated useful life. (True or False) | False |
