Ch 18 Quiz

Every adjustment affects one permanent and one temporary account

• True

• False

It is important to complete each section of the ten-column work sheet before moving on to the next section.

• True

• False

Like the special journals, each section of the work sheet is footed, totaled, proved, and ruled.

• True

• False

The value of merchandise on hand is most accurately determined by a physical inventory.

• True

• False

The value of the ending inventory is always more than the value of the beginning inventory.

• True

• False

If the Merchandise Inventory account is credited in the Adjustments section, it means that the ending inventory is greater than the beginning inventory.

• True

• False

The debit and credit parts of each adjustment are labeled with a small letter in parentheses.

• True

• False

The balance for Supplies in the Trial Balance section of the work sheet represents the beginning Supplies balance minus any supplies used during the period.

• True

• False

In the Adjustments section, Prepaid Insurance will normally be debited.

• True

• False

The Adjustments section of the work sheet contains the adjusted balances of all general ledger accounts.

• True

• False