Question 1

Prepaid expenses appear in the

Accepted Answer

A)  Operating Expenses section of the income statement. 
B)  Other Expenses section of the income statement. 
C)  Current Assets section of the balance sheet. 
D)  Current Liabilities section of the balance sheet. 
A)  Operating Expenses section of the income statement. 
B)  Other Expenses section of the income statement. 
C)  Current Assets section of the balance sheet. 
D)  Current Liabilities section of the balance sheet.

Question 2

An income statement that has one total for all revenues and one total for all expenses is known as a

Accepted Answer

A)  classified income statement. 
B)  multiple-step income statement. 
C)  single-step income statement. 
D)  categorized income statement. 
A)  classified income statement. 
B)  multiple-step income statement. 
C)  single-step income statement. 
D)  categorized income statement.

Question 3

Current assets provide the funds needed to pay bills and meet expenses.

Accepted Answer

A) True 
 B)False

Question 4

The balance of the Sales Returns and Allowances account is reported as a selling expense in Operating Expenses section of a multiple-step income statement.

Accepted Answer

A) True 
 B)False

Question 5

Use the following account balances from the adjusted trial balance columns of Goody Chocolate's worksheet to answer below question.   Using the adjusted trial balance above,select the correct closing entry that Goody Chocolate would make to close their revenue accounts (and other temporary income statement accounts with credit balances)at the end of the accounting period.

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 6

If the Income Summary account has a credit balance after revenues,and expenses are closed,the firm had a net income for the fiscal period.

Accepted Answer

A) True 
 B)False

Question 7

When a firm experiences a net loss,the owner's capital is decreased.

Accepted Answer

A) True 
 B)False

Question 8

A total of $8,000 in supplies was purchased during the year.By the end of the year,the company had used up $5,300 of the supplies.The adjusting entry needed at the end of the year is:

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 9

The ____________________ of a building is the portion of the original cost that has not yet been depreciated.

Accepted Answer

The answer of The ____________________ of a building is the...

Question 10

Interest on notes payable would be listed in the Other Income section of a classified income statement.

Accepted Answer

A) True 
 B)False

Question 11

Use the following account balances from the adjusted trial balance columns of RB Auto's worksheet to answer below question.   Select the closing entry that RB Auto would make at the end of the accounting period to close their revenue accounts and income statement accounts with credit balances.

Accepted Answer

A)  debit Sales and credit Income Summary for $15,000. 
B)  debit Income Summary for $15,000 and credit Sales for $15,000. 
C)  debit Sales and credit R Holloway,Capital for $15,000. 
D)  debit Sales $15,000;debit Purchase Returns and Allowances $200 and credit Income Summary for $15,200. 
A)  debit Sales and credit Income Summary for $15,000. 
B)  debit Income Summary for $15,000 and credit Sales for $15,000. 
C)  debit Sales and credit R Holloway,Capital for $15,000. 
D)  debit Sales $15,000;debit Purchase Returns and Allowances $200 and credit Income Summary for $15,200.

Question 12

A gross profit percentage of 45 percent means that for every $1 of net sales,gross profit amounts to ___________________.

Accepted Answer

The answer of A gross profit percentage of 45 percent...

Question 13

Use the following account balances from the adjusted trial balance columns of Goody Chocolate's worksheet to answer below question.   Using the adjusted trial balance above,select the correct closing entry that Goody Chocolate would make to close the expense accounts (and cost of goods sold accounts with debit balances)at the end of the accounting period.

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 14

The beginning capital balance shown on a statement of owner's equity is $43,000.Net income for the period is $18,000.The owner withdrew $22,000 cash from the business and made no additional investments during the period.The owner's capital balance at the end of the period is

Accepted Answer

A)  $39,000. 
B)  $47,000. 
C)  $61,000. 
D)  $83,000. 
A)  $39,000. 
B)  $47,000. 
C)  $61,000. 
D)  $83,000.

Question 15

After all adjusting entries are posted,the balances of the general ledger accounts should match the amounts shown in the Adjusted Trial Balance section of the worksheet.

Accepted Answer

A) True 
 B)False

Question 16

The balance of the owner's drawing account is

Accepted Answer

A)  listed in the Other Expenses section of the income statement. 
B)  listed in the Current Assets section of the balance sheet. 
C)  used in the calculation of ending capital on a statement of owner's equity. 
D)  listed in the Operating Expenses section of the income statement. 
A)  listed in the Other Expenses section of the income statement. 
B)  listed in the Current Assets section of the balance sheet. 
C)  used in the calculation of ending capital on a statement of owner's equity. 
D)  listed in the Operating Expenses section of the income statement.

Question 17

The accountant of Randy's Flooring has closed all of the temporary income statement accounts.The accountant is now ready to close the Income Summary account.Using the Income Summary T-account below,determine the correct closing entry the accountant needs to make in order to close the account.

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 18

Use the following account balances from the adjusted trial balance columns of RB Auto's worksheet to answer below question.   Select the correct closing entry that RB Auto would make to close their expense account(s)at the end of the accounting period.

Accepted Answer

A)  debit Salary Expense $4,000;debit Rent Expense $3,000;debit Purchases $2,000 and credit Income Summary $9,000 
B)  debit Income Summary $9,000 and credit Salary Expense $4,000;credit Rent Expense $3,000;credit Purchases $2,000 
C)  debit Income Summary $9,000 and credit R.Holloway,Capital for $9,000 
D)  debit R.Holloway,Capital $9,000 and credit Salary Expense $4,000;credit Rent Expense $3,000;credit Purchases $2,000 
A)  debit Salary Expense $4,000;debit Rent Expense $3,000;debit Purchases $2,000 and credit Income Summary $9,000 
B)  debit Income Summary $9,000 and credit Salary Expense $4,000;credit Rent Expense $3,000;credit Purchases $2,000 
C)  debit Income Summary $9,000 and credit R.Holloway,Capital for $9,000 
D)  debit R.Holloway,Capital $9,000 and credit Salary Expense $4,000;credit Rent Expense $3,000;credit Purchases $2,000

Exam 13: Financial Statements and Closing Procedures

Prepaid expenses appear in the

An income statement that has one total for all revenues and one total for all expenses is known as a

Current assets provide the funds needed to pay bills and meet expenses.

The balance of the Sales Returns and Allowances account is reported as a selling expense in Operating Expenses section of a multiple-step income statement.

If the Income Summary account has a credit balance after revenues,and expenses are closed,the firm had a net income for the fiscal period.

When a firm experiences a net loss,the owner's capital is decreased.

A total of $8,000 in supplies was purchased during the year.By the end of the year,the company had used up $5,300 of the supplies.The adjusting entry needed at the end of the year is:

The ____________________ of a building is the portion of the original cost that has not yet been depreciated.

Interest on notes payable would be listed in the Other Income section of a classified income statement.

Use the following account balances from the adjusted trial balance columns of RB Auto's worksheet to answer below question. Select the closing entry that RB Auto would make at the end of the accounting period to close their revenue accounts and income statement accounts with credit balances.

A gross profit percentage of 45 percent means that for every $1 of net sales,gross profit amounts to ___________________.

The beginning capital balance shown on a statement of owner's equity is $43,000.Net income for the period is $18,000.The owner withdrew $22,000 cash from the business and made no additional investments during the period.The owner's capital balance at the end of the period is

After all adjusting entries are posted,the balances of the general ledger accounts should match the amounts shown in the Adjusted Trial Balance section of the worksheet.

The balance of the owner's drawing account is

The accountant of Randy's Flooring has closed all of the temporary income statement accounts.The accountant is now ready to close the Income Summary account.Using the Income Summary T-account below,determine the correct closing entry the accountant needs to make in order to close the account.

Use the following account balances from the adjusted trial balance columns of RB Auto's worksheet to answer below question. Select the correct closing entry that RB Auto would make to close their expense account(s)at the end of the accounting period.

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analyses

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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