Questions -
Q1. The asset account, Office Supplies had a beginning balance of $5,700. During the accounting period, office supplies were purchased, on account, for $5,100. A physical count, on the last day of the accounting period, shows $2,000 of office supplies on hand. What is the amount of Supplies Expense for the accounting period?
A) $5,100
B) $2,600
C) $8,800
D) $3,700
Q2. The accountant of Reliable Consulting Company failed to make an adjusting entry to record $6,000 for unearned service revenues that were earned before the end of the fiscal year. Assume the company initially recorded a liability. Which of the following statements is TRUE?
A) The total liabilities will be overstated.
B) The total liabilities will be understated.
C) The total assets will be overstated.
D) The total assets will be understated.
Q3. The sum of all the depreciation expense recorded to date for a depreciable asset is called __________.
A) book value
B) residual value
C) depreciation expense
D) accumulated depreciation