Question 1

Assuming that there is a net loss for the period, debits equal credits in all but which section of the worksheet?

Accepted Answer

A)  Income statement columns 
B)  Adjustments columns 
C)  Trial balance columns 
D)  Adjusted trial balance columns 
A)  Income statement columns 
B)  Adjustments columns 
C)  Trial balance columns 
D)  Adjusted trial balance columns

Question 2

Compute the dollar amount of current assets based on the following account balances. $$\begin{array} { l r } 
\text { Accounts Receivable } & \$ 22,000 \
\text { Accumulated Depreciation-Equipment } & 27,000 \
\text { Cash } & 8,400 \
\text { Equipment } & 93,000 \
\text { Prepaid Rent } & 7,000 \
\text { Short-term Investments } & 15,000
\end{array}$$

Accepted Answer

Current assets amoun

Question 3

The post-closing trial balance is entered in the first two columns of a worksheet.

Accepted Answer

A) True 
 B)False

Question 4

The post-closing trial balance contains only

Accepted Answer

A)  income statement accounts. 
B)  balance sheet accounts. 
C)  balance sheet and income statement accounts. 
D)  income statement, balance sheet, and retained earnings statement accounts. 
A)  income statement accounts. 
B)  balance sheet accounts. 
C)  balance sheet and income statement accounts. 
D)  income statement, balance sheet, and retained earnings statement accounts.

Question 5

The income summary account

Accepted Answer

A)  is a permanent account. 
B)  appears on the balance sheet. 
C)  appears on the income statement. 
D)  is a temporary account. 
A)  is a permanent account. 
B)  appears on the balance sheet. 
C)  appears on the income statement. 
D)  is a temporary account.

Question 6

The following information is for Bright Eyes Auto Supplies:   The total dollar amount of assets to be classified as current assets is

Accepted Answer

A)  $140,000. 
B)  $220,000. 
C)  $360,000. 
D)  $500,000. 
A)  $140,000. 
B)  $220,000. 
C)  $360,000. 
D)  $500,000.

Question 7

Give the definition of current assets and current liabilities and provide two examples of each.

Accepted Answer

Current assets are assets that a company

Question 8

The closing entry process consists of closing

Accepted Answer

A)  all asset and liability accounts. 
B)  out the retained earnings account. 
C)  all permanent accounts. 
D)  all temporary accounts. 
A)  all asset and liability accounts. 
B)  out the retained earnings account. 
C)  all permanent accounts. 
D)  all temporary accounts.

Question 9

Which of the following would not be classified a long-term liability?

Accepted Answer

A)  Current maturities of long-term debt 
B)  Bonds payable 
C)  Mortgage payable 
D)  Lease liabilities 
A)  Current maturities of long-term debt 
B)  Bonds payable 
C)  Mortgage payable 
D)  Lease liabilities

Question 10

Closing entries

Accepted Answer

A)  are prepared before the financial statements. 
B)  reduce the number of permanent accounts. 
C)  cause the revenue and expense accounts to have zero balances. 
D)  summarize the activity in every account. 
A)  are prepared before the financial statements. 
B)  reduce the number of permanent accounts. 
C)  cause the revenue and expense accounts to have zero balances. 
D)  summarize the activity in every account.

Question 11

The account balances appearing on the trial balance (below) were taken from the general ledger of Irick's Copy Shop at September 30.
Additional information for the month of September which has not yet been recorded in the accounts is as follows:
(a) A physical count of supplies indicates $300 on hand at September 30.
(b) The amount of insurance that expired in the month of September was $200.
(c) Depreciation on equipment for September was $400.
(d) Rent owed on the copy shop for the month of September was $600 but will not be paid until October.
Instructions
Using the above information, complete the worksheet on the following page for Irick's Copy Shop for the month of September.

Accepted Answer

The answer of The account balances appearing on the trial...

Question 12

The steps in the preparation of a worksheet do not include

Accepted Answer

A)  analyzing documentary evidence. 
B)  preparing a trial balance on the worksheet. 
C)  entering the adjustments in the adjustment columns. 
D)  entering adjusted balances in the adjusted trial balance columns. 
A)  analyzing documentary evidence. 
B)  preparing a trial balance on the worksheet. 
C)  entering the adjustments in the adjustment columns. 
D)  entering adjusted balances in the adjusted trial balance columns.

Question 13

At March 31, account balances after adjustments for Vizzini Cinema are as follows:   Instructions
Prepare the closing journal entries for Vizzini Cinema.

Accepted Answer

The answer of At March 31, account balances after adjustments...

Question 14

The following information is for Sunny Day Real Estate:   The total dollar amount of assets to be classified as current assets is

Accepted Answer

A)  $105,000. 
B)  $175,000. 
C)  $190,000. 
D)  $260,000. 
A)  $105,000. 
B)  $175,000. 
C)  $190,000. 
D)  $260,000.

Question 15

The adjustments entered in the adjustments columns of a worksheet are

Accepted Answer

A)  not journalized. 
B)  posted to the ledger but not journalized. 
C)  not journalized until after the financial statements are prepared. 
D)  journalized before the worksheet is completed. 
A)  not journalized. 
B)  posted to the ledger but not journalized. 
C)  not journalized until after the financial statements are prepared. 
D)  journalized before the worksheet is completed.

Question 16

Which one of the following is usually performed only at the end of a company's annual accounting period?

Accepted Answer

A)  Preparing financial statements 
B)  Journalizing and posting adjusting entries 
C)  Journalizing and posting closing entries 
D)  Preparing an adjusted trial balance 
A)  Preparing financial statements 
B)  Journalizing and posting adjusting entries 
C)  Journalizing and posting closing entries 
D)  Preparing an adjusted trial balance

Question 17

All revenue and expense accounts have been closed at the end of the calendar year for Patton Company. The Income Summary account has total debits of $530,000 and total credits of $600,000. As of the same date, Retained Earnings has a balance of $115,000, and the Dividends account has a balance of $48,000.
Instructions
(a) Journalize the entries required to complete the closing of the accounts.
(b) Prepare a retained earnings statement for the year ended December 31, 2018.

Accepted Answer

The answer of All revenue and expense accounts have been...

Question 18

Closing the dividends account to Retained Earnings is not necessary if net income is greater than dividends during the period.

Accepted Answer

A) True 
 B)False

Question 19

The dividends account is a permanent account whose balance is carried forward to the next accounting period.

Accepted Answer

A) True 
 B)False

Question 20

The adjusted trial balance for Molina Company is presented below.
   Molina made an error during year when they debited Utilities Expense for $2,000 instead of Equipment for a cash purchase of equipment. In addition, Molina failed to accrue $4,000 of Service Revenue.
Instructions
(a) Prepare an income statement and a retained earnings statement for the year.
(b) Prepare a classified balance sheet at July 31.

Accepted Answer

The answer of The adjusted trial balance for Molina Company...

Assuming that there is a net loss for the period, debits equal credits in all but which section of the worksheet?

Compute the dollar amount of current assets based on the following account balances. Accounts Receivable \ 22,000 Accumulated Depreciation-Equipment 27,000 Cash 8,400 Equipment 93,000 Prepaid Rent 7,000 Short-term Investments 15,000

The post-closing trial balance is entered in the first two columns of a worksheet.

The post-closing trial balance contains only

The income summary account

The following information is for Bright Eyes Auto Supplies: The total dollar amount of assets to be classified as current assets is

Give the definition of current assets and current liabilities and provide two examples of each.

The closing entry process consists of closing

Which of the following would not be classified a long-term liability?

Closing entries

The steps in the preparation of a worksheet do not include

At March 31, account balances after adjustments for Vizzini Cinema are as follows: Instructions Prepare the closing journal entries for Vizzini Cinema.

The following information is for Sunny Day Real Estate: The total dollar amount of assets to be classified as current assets is

The adjustments entered in the adjustments columns of a worksheet are

Which one of the following is usually performed only at the end of a company's annual accounting period?

Closing the dividends account to Retained Earnings is not necessary if net income is greater than dividends during the period.

The dividends account is a permanent account whose balance is carried forward to the next accounting period.

Accounting in Action

The Recording Process

Adjusting the Accounts

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

Exam 4: Completing the Accounting Cycle

Assuming that there is a net loss for the period, debits equal credits in all but which section of the worksheet?

Compute the dollar amount of current assets based on the following account balances. Accounts Receivable \ 22,000 Accumulated Depreciation-Equipment 27,000 Cash 8,400 Equipment 93,000 Prepaid Rent 7,000 Short-term Investments 15,000

The post-closing trial balance is entered in the first two columns of a worksheet.

The post-closing trial balance contains only

The income summary account

The following information is for Bright Eyes Auto Supplies: The total dollar amount of assets to be classified as current assets is

Give the definition of current assets and current liabilities and provide two examples of each.

The closing entry process consists of closing

Which of the following would not be classified a long-term liability?

Closing entries

The steps in the preparation of a worksheet do not include

At March 31, account balances after adjustments for Vizzini Cinema are as follows: Instructions Prepare the closing journal entries for Vizzini Cinema.

The following information is for Sunny Day Real Estate: The total dollar amount of assets to be classified as current assets is

The adjustments entered in the adjustments columns of a worksheet are

Which one of the following is usually performed only at the end of a company's annual accounting period?

Closing the dividends account to Retained Earnings is not necessary if net income is greater than dividends during the period.

The dividends account is a permanent account whose balance is carried forward to the next accounting period.

Accounting in Action

The Recording Process

Adjusting the Accounts

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters