Question 1

A company paid next month's rent in advance. This would be classified as

Accepted Answer

A)  a current asset. 
B)  Other Income. 
C)  Revenue. 
D)  a current liability. 
A)  a current asset. 
B)  Other Income. 
C)  Revenue. 
D)  a current liability.

Question 2

Which of the following transactions could cause the Income Summary to be debited and Capital to be credited?

Accepted Answer

A)  The business earned a net loss for the period. 
B)  The business earned a net income for the period. 
C)  Closed the Owner's Capital account 
D)  None of these are correct. 
A)  The business earned a net loss for the period. 
B)  The business earned a net income for the period. 
C)  Closed the Owner's Capital account 
D)  None of these are correct.

Question 3

What is the name of the revenue account used by merchandise companies?

Accepted Answer

A)  Sales 
B)  Merchandise Fees 
C)  Merchandise Inventory 
D)  Capital 
A)  Sales 
B)  Merchandise Fees 
C)  Merchandise Inventory 
D)  Capital

Question 4

The post-closing trial balance would not include temporary accounts.

Accepted Answer

A) True 
 B)False

Question 5

A classified balance sheet provides more information about the company to

Accepted Answer

A)  owners. 
B)  creditors. 
C)  suppliers. 
D)  All of the above answers are correct. 
A)  owners. 
B)  creditors. 
C)  suppliers. 
D)  All of the above answers are correct.

Question 6

The income statement is prepared from the

Accepted Answer

A)  balance sheet. 
B)  worksheet. 
C)  general journal. 
D)  statement of owner's equity. 
A)  balance sheet. 
B)  worksheet. 
C)  general journal. 
D)  statement of owner's equity.

Question 7

Reversing entries occur at the beginning of the accounting period and

Accepted Answer

A)  help to reduce potential errors. 
B)  simplify the bookkeeping associated with accruals from the prior period. 
C)  reverse the adjusting entries. 
D)  All of the above are correct. 
A)  help to reduce potential errors. 
B)  simplify the bookkeeping associated with accruals from the prior period. 
C)  reverse the adjusting entries. 
D)  All of the above are correct.

Question 8

The Statement of Owner's Equity is the same for a service business as for a merchandise business.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following accounts will NOT appear on the post-closing trial balance?

Accepted Answer

A)  Capital 
B)  Cash 
C)  Accounts Payable 
D)  Withdrawals 
A)  Capital 
B)  Cash 
C)  Accounts Payable 
D)  Withdrawals

Question 10

The following accounts are on the Balance Sheet section of Great Lakes Camping worksheet for the month ended January 31, 2019.
Required: Prepare a classified balance sheet.
 $$\begin{array} { | l | c | c | } 
\hline \text { Account } & \text { Balance Sheet Debit } & \text { Balance Sheet Credit } \
\hline \text { Cash } & 2 & \
\hline \text { Accounts Receivable } & 4 & \
\hline \text { Merchandise Inventory } & 2 & \
\hline \text { Store Equipment } & 6 & \
\hline \text { Accumulated Depreciation - Store Equipment} & &2 \
\hline \text { Accounts Payable } & & 3 \
\hline \text { Mortgage Payable } & & 6 \
\hline \text { Great Lakes, Capital } & &2 \
\hline
\end{array}$$ Additional information: Withdrawals for the period are $2, and Net Income is $3.

Accepted Answer

The answer of The following accounts are on the Balance...

Question 11

Current assets are

Accepted Answer

A)  cash and other assets that will not be used during the year. 
B)  cash and other assets that will be used during the year. 
C)  cash and other assets that will be converted or consumed during the normal operating cycle of the company or one year, whichever is longer. 
D)  cash and assets that will be converted or consumed during the normal operating cycle or one year, whichever is shorter. 
A)  cash and other assets that will not be used during the year. 
B)  cash and other assets that will be used during the year. 
C)  cash and other assets that will be converted or consumed during the normal operating cycle of the company or one year, whichever is longer. 
D)  cash and assets that will be converted or consumed during the normal operating cycle or one year, whichever is shorter.

Question 12

Non-operating expenses are found in the Cost of Goods Sold section of the income statement.

Accepted Answer

A) True 
 B)False

Question 13

To determine how much merchandise was returned from a company's customers, the company should review the

Accepted Answer

A)  Inventory Account. 
B)  Cost of Goods Sold Account. 
C)  Sales Returns and Allowances Account. 
D)  Sales Discounts Account. 
A)  Inventory Account. 
B)  Cost of Goods Sold Account. 
C)  Sales Returns and Allowances Account. 
D)  Sales Discounts Account.

Question 14

Reversing entries are general journal entries that

Accepted Answer

A)  are the same as the adjusting entries. 
B)  are the opposite of adjusting entries. 
C)  only affect income statement accounts. 
D)  only affect balance sheet accounts. 
A)  are the same as the adjusting entries. 
B)  are the opposite of adjusting entries. 
C)  only affect income statement accounts. 
D)  only affect balance sheet accounts.

Question 15

The first step in the closing process is to

Accepted Answer

A)  close all balances on the income statement debit column of the worksheet except Income Summary. 
B)  transfer the balance from the Income Summary Account to the Capital Account. 
C)  close all balances on the income statement credit column of the worksheet except Income Summary. 
D)  transfer the balance of the Owner's Withdrawals Account to Capital. 
A)  close all balances on the income statement debit column of the worksheet except Income Summary. 
B)  transfer the balance from the Income Summary Account to the Capital Account. 
C)  close all balances on the income statement credit column of the worksheet except Income Summary. 
D)  transfer the balance of the Owner's Withdrawals Account to Capital.

Question 16

The entry to close the Withdrawal account was entered in reverse - the Withdrawal account was debited and Capital credited. This error would cause

Accepted Answer

A)  Capital to be understated. 
B)  net income to be overstated. 
C)  net income to be understated. 
D)  Withdrawals to be overstated. 
A)  Capital to be understated. 
B)  net income to be overstated. 
C)  net income to be understated. 
D)  Withdrawals to be overstated.

Question 17

Prepaid Insurance would be classified as a current asset.

Accepted Answer

A) True 
 B)False

Question 18

Weir Company's adjusting entries included the following items:
Interest Expense 200
Interest Payable 200
Depreciation Expense 50
Accumulated Depreciation 50
Interest Receivable 90
Interest Income 90
Required: Prepare the appropriate reversing entries.

Accepted Answer

Interest Payable 200

Question 19

The entry to close the expense account(s) was entered in reverse - Income Summary was credited and the expense account(s) was/were debited. This error would cause

Accepted Answer

A)  assets to be overstated. 
B)  liabilities to be overstated. 
C)  Capital account to be understated. 
D)  Capital account to be overstated. 
A)  assets to be overstated. 
B)  liabilities to be overstated. 
C)  Capital account to be understated. 
D)  Capital account to be overstated.

Question 20

How is Income Summary closed if the company had a net loss?

Accepted Answer

A)  Credit Income Summary; debit Capital 
B)  Debit Income Summary; credit Capital 
C)  Debit Capital; credit Withdrawals 
D)  Debit Withdrawals; credit Capital 
A)  Credit Income Summary; debit Capital 
B)  Debit Income Summary; credit Capital 
C)  Debit Capital; credit Withdrawals 
D)  Debit Withdrawals; credit Capital

A company paid next month's rent in advance. This would be classified as

Which of the following transactions could cause the Income Summary to be debited and Capital to be credited?

What is the name of the revenue account used by merchandise companies?

The post-closing trial balance would not include temporary accounts.

A classified balance sheet provides more information about the company to

The income statement is prepared from the

Reversing entries occur at the beginning of the accounting period and

The Statement of Owner's Equity is the same for a service business as for a merchandise business.

Which of the following accounts will NOT appear on the post-closing trial balance?

Current assets are

Non-operating expenses are found in the Cost of Goods Sold section of the income statement.

To determine how much merchandise was returned from a company's customers, the company should review the

Reversing entries are general journal entries that

The first step in the closing process is to

The entry to close the Withdrawal account was entered in reverse - the Withdrawal account was debited and Capital credited. This error would cause

Prepaid Insurance would be classified as a current asset.

Weir Company's adjusting entries included the following items: Interest Expense 200 Interest Payable 200 Depreciation Expense 50 Accumulated Depreciation 50 Interest Receivable 90 Interest Income 90 Required: Prepare the appropriate reversing entries.

The entry to close the expense account(s) was entered in reverse - Income Summary was credited and the expense account(s) was/were debited. This error would cause

How is Income Summary closed if the company had a net loss?

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Filters

Exam 13: Completion of the Accounting Cycle for a Merchandising Company

A company paid next month's rent in advance. This would be classified as

Which of the following transactions could cause the Income Summary to be debited and Capital to be credited?

What is the name of the revenue account used by merchandise companies?

The post-closing trial balance would not include temporary accounts.

A classified balance sheet provides more information about the company to

The income statement is prepared from the

Reversing entries occur at the beginning of the accounting period and

The Statement of Owner's Equity is the same for a service business as for a merchandise business.

Which of the following accounts will NOT appear on the post-closing trial balance?

Current assets are

Non-operating expenses are found in the Cost of Goods Sold section of the income statement.

To determine how much merchandise was returned from a company's customers, the company should review the

Reversing entries are general journal entries that

The first step in the closing process is to

The entry to close the Withdrawal account was entered in reverse - the Withdrawal account was debited and Capital credited. This error would cause

Prepaid Insurance would be classified as a current asset.

Weir Company's adjusting entries included the following items: Interest Expense 200 Interest Payable 200 Depreciation Expense 50 Accumulated Depreciation 50 Interest Receivable 90 Interest Income 90 Required: Prepare the appropriate reversing entries.

The entry to close the expense account(s) was entered in reverse - Income Summary was credited and the expense account(s) was/were debited. This error would cause

How is Income Summary closed if the company had a net loss?

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Filters