Question 1

Which of the following accounts would not be shown on the post-closing trial balance?

Accepted Answer

A)  Rent Expense 
B)  Retained Earnings 
C)  Cash 
D)  Common Stock 
A)  Rent Expense 
B)  Retained Earnings 
C)  Cash 
D)  Common Stock A

Question 2

If a journal entry has not been posted to the general ledger, the unadjusted trial balance will still balance.

Accepted Answer

A) True 
 B)False  True

Question 3

Carroll Company accrued interest of $500 on a $10,000, 10% note payable at December 31. The annual interest payment will be made on July 1. The reversing entry will include a ________.

Accepted Answer

A)  credit to Interest Payable for $500 
B)  debit to Notes Payable for $10,000 
C)  credit to Interest Expense of $500 
D)  debit to Cash for $500 
A)  credit to Interest Payable for $500 
B)  debit to Notes Payable for $10,000 
C)  credit to Interest Expense of $500 
D)  debit to Cash for $500 C

Question 4

Which of the following accounts would not be shown on the post-closing trial balance?

Accepted Answer

A)  Dividends Payable 
B)  Depletion Expense 
C)  Patent 
D)  Investment in Bonds 
A)  Dividends Payable 
B)  Depletion Expense 
C)  Patent 
D)  Investment in Bonds

Question 5

Presented below is an adjusted trial balance for Jackson Services Inc. for December 31 of the current year:
Adjusted Trial Balance
   a. Prepare a single-step income statement for the year.
b. Prepare a statement of stockholders' equity for the year. There were no new issues or retirements of common stock during the year.
c. Prepare a classified balance sheet at year end.

Accepted Answer

a.
Jackson Services, Inc.
Statement of N

Question 6

When a company receives a utility bill for electricity used this past month and payable next month, the entry includes a ________.

Accepted Answer

A)  debit to a liability 
B)  credit to an asset 
C)  debit to an expense 
D)  debit to an asset 
A)  debit to a liability 
B)  credit to an asset 
C)  debit to an expense 
D)  debit to an asset

Question 7

The process of transferring information into individual ledger accounts is called ________.

Accepted Answer

A)  ledgering 
B)  transferring 
C)  journalizing 
D)  posting 
A)  ledgering 
B)  transferring 
C)  journalizing 
D)  posting

Question 8

Which of the following accounts is a temporary account?

Accepted Answer

A)  Supplies 
B)  Interest Expense 
C)  Patents 
D)  Insurance 
A)  Supplies 
B)  Interest Expense 
C)  Patents 
D)  Insurance

Question 9

The White Boar Pub purchased a two-year insurance policy for $1,200 on February 1 and recorded it as an asset. On June 30, the adjusting entry that should be made is ________.

Accepted Answer

A)  $$\begin{array} { l l } 
\text { Prepaid Insurance } & 950 \
\quad \text { Insurance Expense } &&950
\end{array} $$ 
B)  $\begin{array}{lrr}
  \text {  Insurance Expense } &250\
 \text {Prepaid Insurance  } &&250\
\end{array}$ 
C)  $\begin{array}{lrr}
  \text {  Prepaid Insurance} &250\
 \text {Insurance Expense  } &&250\
\end{array}$ 
D)  $$\begin{array} { l l } 
\text { Insurance Expense } & 950 \
\text { Prepaid Insurance } &&950
\end{array} $$ 
A)  $$\begin{array} { l l } 
\text { Prepaid Insurance } & 950 \
\quad \text { Insurance Expense } &&950
\end{array} $$ 
B)  $\begin{array}{lrr}
  \text {  Insurance Expense } &250\
 \text {Prepaid Insurance  } &&250\
\end{array}$ 
C)  $\begin{array}{lrr}
  \text {  Prepaid Insurance} &250\
 \text {Insurance Expense  } &&250\
\end{array}$ 
D)  $$\begin{array} { l l } 
\text { Insurance Expense } & 950 \
\text { Prepaid Insurance } &&950
\end{array} $$

Question 10

Reversing entries change the amounts reported in previously issued financial statements.

Accepted Answer

A) True 
 B)False

Question 11

Financial statements are prepared after the temporary accounts are closed.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following accounts would be shown on the post-closing trial balance?

Accepted Answer

A)  Salaries Payable 
B)  Salaries Expense 
C)  Wage Expense 
D)  Depreciation Expense 
A)  Salaries Payable 
B)  Salaries Expense 
C)  Wage Expense 
D)  Depreciation Expense

Question 13

The final financial statement to be prepared is the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 14

Deferred expenses may be initially recorded as assets or expenses.

Accepted Answer

A) True 
 B)False

Question 15

If a prepaid expense is initially recorded as an expense, the end-of-period adjusting entry records the unexpired portion.

Accepted Answer

A) True 
 B)False

Question 16

Explain why the financial statements must be prepared in the following order: statement of net income, statement of stockholders' equity, balance sheet, statement of cash flows.

Accepted Answer

The amount of net income is needed to co

Question 17

List the steps in the accounting cycle in the correct order.

Accepted Answer

1. Analyze the transactions.
2. Journali

Question 18

List the steps required to close temporary accounts.

Accepted Answer

1. Close out revenue accounts with debit

Question 19

Olympic Equipment borrowed $500,000 on November 1. The note matures in one year and the interest rate is 10%. What amount of interest expense will be accrued on December 31? (Do not round intermediary calculations. Only round your final answer to the nearest dollar.)

Accepted Answer

A)  $25,000 
B)  $100,000 
C)  $8,333 
D)  $50,000 
A)  $25,000 
B)  $100,000 
C)  $8,333 
D)  $50,000

Question 20

Rent expense is normally considered a peripheral transaction of a company.

Accepted Answer

A) True 
 B)False

Exam 4: Review of the Accounting Cycle

Which of the following accounts would not be shown on the post-closing trial balance?

If a journal entry has not been posted to the general ledger, the unadjusted trial balance will still balance.

Carroll Company accrued interest of $500 on a $10,000, 10% note payable at December 31. The annual interest payment will be made on July 1. The reversing entry will include a ________.

Which of the following accounts would not be shown on the post-closing trial balance?

When a company receives a utility bill for electricity used this past month and payable next month, the entry includes a ________.

The process of transferring information into individual ledger accounts is called ________.

Which of the following accounts is a temporary account?

The White Boar Pub purchased a two-year insurance policy for $1,200 on February 1 and recorded it as an asset. On June 30, the adjusting entry that should be made is ________.

Reversing entries change the amounts reported in previously issued financial statements.

Financial statements are prepared after the temporary accounts are closed.

Which of the following accounts would be shown on the post-closing trial balance?

The final financial statement to be prepared is the statement of cash flows.

Deferred expenses may be initially recorded as assets or expenses.

If a prepaid expense is initially recorded as an expense, the end-of-period adjusting entry records the unexpired portion.

Explain why the financial statements must be prepared in the following order: statement of net income, statement of stockholders' equity, balance sheet, statement of cash flows.

List the steps in the accounting cycle in the correct order.

List the steps required to close temporary accounts.

Olympic Equipment borrowed $500,000 on November 1. The note matures in one year and the interest rate is 10%. What amount of interest expense will be accrued on December 31? (Do not round intermediary calculations. Only round your final answer to the nearest dollar.)

Rent expense is normally considered a peripheral transaction of a company.

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

Extenssion: Ol Revenue Recognition Previous Standard

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, Cost Allocation

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Leases

Extension: Ol Accounting for Leases Current Standard

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

The Statement of Cash Flows

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