Question 1

Which of the following steps in the accounting cycle may be performed most frequently?

Accepted Answer

A)  Prepare a post-closing trial balance 
B)  Journalize closing entries 
C)  Post closing entries 
D)  Prepare a trial balance 
A)  Prepare a post-closing trial balance 
B)  Journalize closing entries 
C)  Post closing entries 
D)  Prepare a trial balance

Question 2

The financial statement columns of the worksheet for Miracle Max at December 31, 2018, are as follows:   Instructions
(a) Calculate the retained earnings balance that would appear on a balance sheet at December 31, 2018.
(b) Prepare a classified balance sheet for Miracle Max at December 31, 2018 assuming the note payable is a long-term liability.

Accepted Answer

The answer of The financial statement columns of the worksheet...

Question 3

The IASB and FASB are working on a converged statement of financial position using the headings of

Accepted Answer

A)  assets, liabilities, and equity. 
B)  revenues and expenses. 
C)  assets, liabilities, revenues, expenses and equity. 
D)  operating, investing, and financing.
IFRS. 
A)  assets, liabilities, and equity. 
B)  revenues and expenses. 
C)  assets, liabilities, revenues, expenses and equity. 
D)  operating, investing, and financing.
IFRS.

Question 4

Preparing a worksheet involves

Accepted Answer

A)  two steps. 
B)  three steps. 
C)  four steps. 
D)  five steps. 
A)  two steps. 
B)  three steps. 
C)  four steps. 
D)  five steps.

Question 5

Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)  $50,000. 
B)  $130,000. 
C)  $180,000. 
D)  $330,000. 
A)  $50,000. 
B)  $130,000. 
C)  $180,000. 
D)  $330,000.

Question 7

Closing entries are

Accepted Answer

A)  an optional step in the accounting cycle. 
B)  posted to the ledger accounts from the worksheet. 
C)  made to close permanent or real accounts. 
D)  journalized in the general journal. 
A)  an optional step in the accounting cycle. 
B)  posted to the ledger accounts from the worksheet. 
C)  made to close permanent or real accounts. 
D)  journalized in the general journal.

Question 8

In preparing closing entries

Accepted Answer

A)  each revenue account will be credited. 
B)  each expense account will be credited. 
C)  the retained earnings account will be debited if there is net income for the period. 
D)  the dividends account will be debited. 
A)  each revenue account will be credited. 
B)  each expense account will be credited. 
C)  the retained earnings account will be debited if there is net income for the period. 
D)  the dividends account will be debited.

Question 9

The following items are taken from the adjusted trial balance of Westley Company for the month ending July 31, 2018:   Prepare the current assets section of Westley's classified balance sheet.

Accepted Answer

The answer of The following items are taken from the...

Question 10

Which of the following liabilities are not related to the operating cycle?

Accepted Answer

A)  Salaries and wages payable 
B)  Accounts payable 
C)  Utilities payable 
D)  Bonds payable 
A)  Salaries and wages payable 
B)  Accounts payable 
C)  Utilities payable 
D)  Bonds payable

Question 11

Correcting entries

Accepted Answer

A)  always affect at least one balance sheet account and one income statement account. 
B)  affect income statement accounts only. 
C)  affect balance sheet accounts only. 
D)  may involve any combination of accounts in need of correction. 
A)  always affect at least one balance sheet account and one income statement account. 
B)  affect income statement accounts only. 
C)  affect balance sheet accounts only. 
D)  may involve any combination of accounts in need of correction.

Question 12

Prepare the necessary closing entries based on the following selected accounts. $$\begin{array} { l r } 
\text { Accumulated Depreciation } & \$ 10,000 \
\text { Depreciation Expense } & 4,000 \
\text { Retained Earnings } & 20,000 \
\text { Dividends } & 12,000 \
\text { Salaries and Wages Expense } & 18,000 \
\text { Service Revenue } & 31,000
\end{array}$$

Accepted Answer

The answer of Prepare the necessary closing entries based on...

Question 13

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

Accepted Answer

A)  $0. 
B)  $140,000. 
C)  $180,000. 
D)  $250,000. 
A)  $0. 
B)  $140,000. 
C)  $180,000. 
D)  $250,000.

Question 14

A post-closing trial balance is prepared

Accepted Answer

A)  after closing entries have been journalized and posted. 
B)  before closing entries have been journalized and posted. 
C)  after closing entries have been journalized but before the entries are posted. 
D)  before closing entries have been journalized but after the entries are posted. 
A)  after closing entries have been journalized and posted. 
B)  before closing entries have been journalized and posted. 
C)  after closing entries have been journalized but before the entries are posted. 
D)  before closing entries have been journalized but after the entries are posted.

Question 15

On September 23, Sebadoh Company received a $350 check from Surfer Rosa Inc. for services to be performed in the future. The bookkeeper for Sebadoh Company incorrectly debited Cash for $350 and credited Accounts Receivable for $350. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should

Accepted Answer

A)  debit Cash $350 and credit Unearned Service Revenue $350. 
B)  debit Accounts Receivable $350 and credit Unearned Service Revenue $350. 
C)  debit Accounts Receivable $350 and credit Cash $350. 
D)  debit Accounts Receivable $350 and credit Service Revenue $350. 
A)  debit Cash $350 and credit Unearned Service Revenue $350. 
B)  debit Accounts Receivable $350 and credit Unearned Service Revenue $350. 
C)  debit Accounts Receivable $350 and credit Cash $350. 
D)  debit Accounts Receivable $350 and credit Service Revenue $350.

Question 16

When using a worksheet, adjusting entries are journalized

Accepted Answer

A)  after the worksheet is completed and before financial statements are prepared. 
B)  before the adjustments are entered on to the worksheet. 
C)  after the worksheet is completed and after financial statements have been prepared. 
D)  before the adjusted trial balance is extended to the proper financial statement columns. 
A)  after the worksheet is completed and before financial statements are prepared. 
B)  before the adjustments are entered on to the worksheet. 
C)  after the worksheet is completed and after financial statements have been prepared. 
D)  before the adjusted trial balance is extended to the proper financial statement columns.

Question 17

IFRS

Accepted Answer

A)  requires a specific format for the balance sheet (statement of financial position) that is identical to U.S. GAAP. 
B)  requires a specific format for the balance sheet (statement of financial position) that is different from U.S. GAAP. 
C)  requires no specific format for the balance sheet (statement of financial position) but most companies that follow IFRS prepare the statement identical to U.S. GAAP. 
D)  requires no specific format for the balance sheet (statement of financial position) but most companies that follow IFRS prepare the statement in a different format from U.S. GAAP.
IFRS. 
A)  requires a specific format for the balance sheet (statement of financial position) that is identical to U.S. GAAP. 
B)  requires a specific format for the balance sheet (statement of financial position) that is different from U.S. GAAP. 
C)  requires no specific format for the balance sheet (statement of financial position) but most companies that follow IFRS prepare the statement identical to U.S. GAAP. 
D)  requires no specific format for the balance sheet (statement of financial position) but most companies that follow IFRS prepare the statement in a different format from U.S. GAAP.
IFRS.

Question 18

After all closing entries have been journalized and posted, the final step in the accounting cycle is to prepare a ______________ trial balance.

Accepted Answer

The answer of After all closing entries have been journalized...

Question 19

The income statement for the year 2018 of Fugazi Co. contains the following information: $\begin{array}{lr}\text { Revenues }&&\$70,000\\text { Expenses: }\
\text { Salaries and Wages Expense } & \$ 45,000 \
\text { Rent Expense } & 12,000 \
\text { Advertising Expense } & 10,000 \
\text { Supplies Expense } & 6,000 \
\text { Utilities Expense } & 2,500 \
\text { Insurance Expense } & 2,000\\text { Total expenses }&&77,500\\text { Net income }&&\$7,500
\end{array}$ At January 1, 2018, Fugazi reported retained earnings of $50,000. Dividends for the year totalled $10,000. At December 31, 2018, the company will report retained earnings of

Accepted Answer

A)  $17,500. 
B)  $32,500. 
C)  $40,000. 
D)  $42,500. 
A)  $17,500. 
B)  $32,500. 
C)  $40,000. 
D)  $42,500.

Question 20

The following information is for Bright Eyes Auto Supplies:

Accepted Answer

A)  $390,000. 
B)  $450,000. 
C)  $570,000. 
D)  $630,000. 
A)  $390,000. 
B)  $450,000. 
C)  $570,000. 
D)  $630,000.

Which of the following steps in the accounting cycle may be performed most frequently?

The IASB and FASB are working on a converged statement of financial position using the headings of

Preparing a worksheet involves

Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period.

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

Closing entries are

In preparing closing entries

The following items are taken from the adjusted trial balance of Westley Company for the month ending July 31, 2018: Prepare the current assets section of Westley's classified balance sheet.

Which of the following liabilities are not related to the operating cycle?

Correcting entries

Prepare the necessary closing entries based on the following selected accounts. Accumulated Depreciation \ 10,000 Depreciation Expense 4,000 Retained Earnings 20,000 Dividends 12,000 Salaries and Wages Expense 18,000 Service Revenue 31,000

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

A post-closing trial balance is prepared

When using a worksheet, adjusting entries are journalized

IFRS

After all closing entries have been journalized and posted, the final step in the accounting cycle is to prepare a ______________ trial balance.

The following information is for Bright Eyes Auto Supplies:

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

Which of the following steps in the accounting cycle may be performed most frequently?

The IASB and FASB are working on a converged statement of financial position using the headings of

Preparing a worksheet involves

Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period.

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

Closing entries are

In preparing closing entries

The following items are taken from the adjusted trial balance of Westley Company for the month ending July 31, 2018: Prepare the current assets section of Westley's classified balance sheet.

Which of the following liabilities are not related to the operating cycle?

Correcting entries

Prepare the necessary closing entries based on the following selected accounts. Accumulated Depreciation \ 10,000 Depreciation Expense 4,000 Retained Earnings 20,000 Dividends 12,000 Salaries and Wages Expense 18,000 Service Revenue 31,000

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

A post-closing trial balance is prepared

When using a worksheet, adjusting entries are journalized

IFRS

After all closing entries have been journalized and posted, the final step in the accounting cycle is to prepare a ______________ trial balance.

The following information is for Bright Eyes Auto Supplies:

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