Tessa Paper
Chapter 6
BUSINESS ACCOUNTING CYCLE PART II
Assessment Questions
AS-1 ( 1 )
What is the purpose of a worksheet?
The worksheet is used by accountant to test that accounts will always be in balance during
______________________________________________________________________________
the period end procedures.
______________________________________________________________________________
AS-2 ( 1 )
Why must adjustments be made at the end of the accounting period?
Adjustments are made to ensure that accounts show the proper balance.
______________________________________________________________________________
______________________________________________________________________________
AS-3 ( 1 )
When making an adjustment to record unearned revenue that is now earned, which accounts are used and how are they affected?
Unearned revenue (a liability) will decrease and service revenue (a revenue account) will
______________________________________________________________________________
increase.
______________________________________________________________________________
AS-4 ( 1 )
When making an adjustment to record depreciation on property, plant and equipment, which accounts are used and how are they affected?
Depreciation expense (an expense) will increase and accumulated depreciation (a contra______________________________________________________________________________ asset) will increase
______________________________________________________________________________
139
Chapter 6
Business Accounting Cycle Part II
AS-5 ( 1 )
When making an adjustment to record the used portion of prepaid insurance, which accounts are used and how are they affected?
Prepaid expenses (an asset) will decrease and insurance expense (an expense) will increase.
______________________________________________________________________________
______________________________________________________________________________
AS-6 ( 1 )
When
BUSINESS ACCOUNTING CYCLE PART II
Assessment Questions
AS-1 ( 1 )
What is the purpose of a worksheet?
The worksheet is used by accountant to test that accounts will always be in balance during
______________________________________________________________________________
the period end procedures.
______________________________________________________________________________
AS-2 ( 1 )
Why must adjustments be made at the end of the accounting period?
Adjustments are made to ensure that accounts show the proper balance.
______________________________________________________________________________
______________________________________________________________________________
AS-3 ( 1 )
When making an adjustment to record unearned revenue that is now earned, which accounts are used and how are they affected?
Unearned revenue (a liability) will decrease and service revenue (a revenue account) will
______________________________________________________________________________
increase.
______________________________________________________________________________
AS-4 ( 1 )
When making an adjustment to record depreciation on property, plant and equipment, which accounts are used and how are they affected?
Depreciation expense (an expense) will increase and accumulated depreciation (a contra______________________________________________________________________________ asset) will increase
______________________________________________________________________________
139
Chapter 6
Business Accounting Cycle Part II
AS-5 ( 1 )
When making an adjustment to record the used portion of prepaid insurance, which accounts are used and how are they affected?
Prepaid expenses (an asset) will decrease and insurance expense (an expense) will increase.
______________________________________________________________________________
______________________________________________________________________________
AS-6 ( 1 )
When