1. Equipment with a cost of $250,000 has an accumulated depreciation of $50,000. What is the book value of the equipment?
A. $250,000
B. $50,000
C. $200,000
D. $100,000
2. Adjusting entries affect:
A. the balance sheet.
B. the income statement.
C. Neither of these answers is correct.
D. both balance sheet and income statement are correct.
3. At the end of its fiscal year, the company had only $450 of office supplies on hand but the supplies account listed $550. What is the year end adjusting journal entry?
A. debit supplies and credit supplies expense for $100
B. debit supplies expense and credit supplies for $100
C. debit supplies and credit supplies expense for $450
D. debit supplies expense and credit supplies for $450
4. Accounts in which the balances are carried over from one accounting period to the next are called:
A. real accounts.
B. nominal accounts.
C. temporary accounts.
D. zero accounts.