Question 1

In one closing entry, Dividends is credited and Income Summary is debited.

Accepted Answer

A) True 
 B)False

Question 2

Reisner Company prepared the following adjusting entries at year end on December 31, 2018:   In an effort to minimize errors in recording transactions, Reisner Company utilizes reversing entries.
Instructions
Prepare reversing entries on January 1, 2019, for the adjusting entries given where appropriate.

Accepted Answer

Reversing entries are appropri

Question 3

Current assets are customarily the first items listed on a classified balance sheet.

Accepted Answer

A) True 
 B)False

Question 4

The preparation of a ______________ and ______________ entries are two optional steps in the accounting cycle.

Accepted Answer

worksheet

Question 5

A business entity has only one accounting cycle over its economic existence.

Accepted Answer

A) True 
 B)False

Question 6

Balance sheet accounts are considered to be

Accepted Answer

A)  temporary stockholders' equity accounts. 
B)  permanent accounts. 
C)  equity accounts. 
D)  nominal accounts. 
A)  temporary stockholders' equity accounts. 
B)  permanent accounts. 
C)  equity accounts. 
D)  nominal accounts.

Question 7

Which account listed below would be double ruled (double underline) in the ledger as part of the closing process?

Accepted Answer

A)  Cash 
B)  Retained Earnings 
C)  Dividends 
D)  Accumulated Depreciation-Equipment 
A)  Cash 
B)  Retained Earnings 
C)  Dividends 
D)  Accumulated Depreciation-Equipment

Question 8

If a company utilizes reversing entries, they will

Accepted Answer

A)  be made at the beginning of the next accounting period. 
B)  not actually be posted to the general ledger accounts. 
C)  be made before the post-closing trial balance. 
D)  be part of the adjusting entry process. 
A)  be made at the beginning of the next accounting period. 
B)  not actually be posted to the general ledger accounts. 
C)  be made before the post-closing trial balance. 
D)  be part of the adjusting entry process.

Question 9

The subtotal net assets is used in

Accepted Answer

A)  both GAAP and IFRS. 
B)  GAAP but not IFRS. 
C)  IFRS but not GAAP. 
D)  neither IFRS nor GAAP.
IFRS. 
A)  both GAAP and IFRS. 
B)  GAAP but not IFRS. 
C)  IFRS but not GAAP. 
D)  neither IFRS nor GAAP.
IFRS.

Question 10

Prepare the necessary correcting entry for each of the following.
a. A payment of $5,000 for salaries was recorded as a debit to Supplies Expense and a credit to Cash.
b. A purchase of supplies on account for $1,000 was recorded as a debit to Equipment and a credit to Accounts Payable.
,

Accepted Answer

a. Salaries and Wage

Question 11

The following lettered items represent a classification scheme for a balance sheet, and the numbered items represent accounts found on balance sheets. In the blank next to each account, write the letter indicating to which category it belongs.
A. Current assets E. Current liabilities
B. Long-term investments F. Long-term liabilities
C. Property, plant, and equipment G. Stockholders' equity
D. Intangible assets H. Not on the balance sheet
_____ 1. Accumulated Depreciation _____ 6. Inventory
_____ 2. Retained Earnings _____ 7. Patents
_____ 3. Interest Expense _____ 8. Prepaid Rent
_____ 4. Salaries and Wages Payable _____ 9. Mortgage Payable
_____ 5. Dividends _____ 10. Land Held for Investment

Accepted Answer

1. C 6. A
2. G 7. D

Question 12

A company's operating cycle and fiscal year are usually the same length of time.

Accepted Answer

A) True 
 B)False

Question 13

A company's liquidity is concerned with the relationship between long-term investments and long-term debt.

Accepted Answer

A) True 
 B)False

Question 14

In a corporation, Retained Earnings is a part of stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 15

A worksheet is a multiple column form that facilitates the

Accepted Answer

A)  identification of events. 
B)  measurement process. 
C)  preparation of financial statements. 
D)  analysis process. 
A)  identification of events. 
B)  measurement process. 
C)  preparation of financial statements. 
D)  analysis process.

Question 16

The financial statement columns of the worksheet for Booer Company as of December 31, 2018 are as follows:   Instructions
Prepare a classified balance sheet for Booer Company.

Accepted Answer

@#IMG-DLM& * Retained earnings

Question 17

In order to close the dividends account, the

Accepted Answer

A)  income summary account should be debited. 
B)  income summary account should be credited. 
C)  retained earnings account should be credited. 
D)  retained earnings account should be debited. 
A)  income summary account should be debited. 
B)  income summary account should be credited. 
C)  retained earnings account should be credited. 
D)  retained earnings account should be debited.

Question 18

Closing entries are necessary for

Accepted Answer

A)  permanent accounts only. 
B)  temporary accounts only. 
C)  both permanent and temporary accounts. 
D)  permanent or real accounts only. 
A)  permanent accounts only. 
B)  temporary accounts only. 
C)  both permanent and temporary accounts. 
D)  permanent or real accounts only.

Question 19

Income Summary has a credit balance of $17,000 in S. Sufjan Co. after closing revenues and expenses. The entry to close Income Summary is

Accepted Answer

A)  credit Income Summary $17,000, debit Retained Earnings $17,000. 
B)  credit Income Summary $17,000, debit Dividends $17,000. 
C)  debit Income Summary $17,000, credit Dividends $17,000. 
D)  debit Income Summary $17,000, credit Retained Earnings $17,000. 
A)  credit Income Summary $17,000, debit Retained Earnings $17,000. 
B)  credit Income Summary $17,000, debit Dividends $17,000. 
C)  debit Income Summary $17,000, credit Dividends $17,000. 
D)  debit Income Summary $17,000, credit Retained Earnings $17,000.

Question 20

The use of fair value to report assets

Accepted Answer

A)  is not allowed under GAAP or IFRS. 
B)  is required by GAAP and IFRS. 
C)  is increasing under GAAP and IFRS, but GAAP has adopted it more broadly. 
D)  is increasing under GAAP and IFRS, but IFRS has adopted it more broadly.
IFRS. 
A)  is not allowed under GAAP or IFRS. 
B)  is required by GAAP and IFRS. 
C)  is increasing under GAAP and IFRS, but GAAP has adopted it more broadly. 
D)  is increasing under GAAP and IFRS, but IFRS has adopted it more broadly.
IFRS.

In one closing entry, Dividends is credited and Income Summary is debited.

Current assets are customarily the first items listed on a classified balance sheet.

The preparation of a and entries are two optional steps in the accounting cycle.

A business entity has only one accounting cycle over its economic existence.

Balance sheet accounts are considered to be

Which account listed below would be double ruled (double underline) in the ledger as part of the closing process?

If a company utilizes reversing entries, they will

The subtotal net assets is used in

Prepare the necessary correcting entry for each of the following. a. A payment of $5,000 for salaries was recorded as a debit to Supplies Expense and a credit to Cash. b. A purchase of supplies on account for $1,000 was recorded as a debit to Equipment and a credit to Accounts Payable. ,

A company's operating cycle and fiscal year are usually the same length of time.

A company's liquidity is concerned with the relationship between long-term investments and long-term debt.

In a corporation, Retained Earnings is a part of stockholders' equity.

A worksheet is a multiple column form that facilitates the

The financial statement columns of the worksheet for Booer Company as of December 31, 2018 are as follows: Instructions Prepare a classified balance sheet for Booer Company.

In order to close the dividends account, the

Closing entries are necessary for

Income Summary has a credit balance of $17,000 in S. Sufjan Co. after closing revenues and expenses. The entry to close Income Summary is

The use of fair value to report assets

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

In one closing entry, Dividends is credited and Income Summary is debited.

Current assets are customarily the first items listed on a classified balance sheet.

The preparation of a ______________ and ______________ entries are two optional steps in the accounting cycle.

A business entity has only one accounting cycle over its economic existence.

Balance sheet accounts are considered to be

Which account listed below would be double ruled (double underline) in the ledger as part of the closing process?

If a company utilizes reversing entries, they will

The subtotal net assets is used in

Prepare the necessary correcting entry for each of the following. a. A payment of $5,000 for salaries was recorded as a debit to Supplies Expense and a credit to Cash. b. A purchase of supplies on account for $1,000 was recorded as a debit to Equipment and a credit to Accounts Payable. ,

A company's operating cycle and fiscal year are usually the same length of time.

A company's liquidity is concerned with the relationship between long-term investments and long-term debt.

In a corporation, Retained Earnings is a part of stockholders' equity.

A worksheet is a multiple column form that facilitates the

The financial statement columns of the worksheet for Booer Company as of December 31, 2018 are as follows: Instructions Prepare a classified balance sheet for Booer Company.

In order to close the dividends account, the

Closing entries are necessary for

Income Summary has a credit balance of $17,000 in S. Sufjan Co. after closing revenues and expenses. The entry to close Income Summary is

The use of fair value to report assets

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

The preparation of a and entries are two optional steps in the accounting cycle.