Question 1

The end-of-period work sheet is completed after adjusting entries have been recorded and posted.

Accepted Answer

A) True 
 B)False

Question 2

Cash and other assets that will be converted into cash within one year or the normal operating cycle of the business, whichever is longer, are called

Accepted Answer

A)  property. 
B)  plant. 
C)  equipment. 
D)  current assets. 
A)  property. 
B)  plant. 
C)  equipment. 
D)  current assets.

Question 3

(Appendix) Business transactions can be classified as

Accepted Answer

A)  operating, investing, and accounting. 
B)  operating, financing, and lending. 
C)  operating, investing, and financing. 
D)  operating, lending, and borrowing. 
A)  operating, investing, and accounting. 
B)  operating, financing, and lending. 
C)  operating, investing, and financing. 
D)  operating, lending, and borrowing.

Question 4

The heading for a balance sheet includes the name of the business, the title of the statement, and a period of time.

Accepted Answer

A) True 
 B)False

Question 5

Closing entries are made in the journal and posted to the ledger accounts.

Accepted Answer

A) True 
 B)False

Question 6

Adjusting entries are recorded and posted after closing entries.

Accepted Answer

A) True 
 B)False

Question 7

The income summary account appears on the income statement at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 8

Long-term liabilities are liabilities that are due in a period longer than one year.

Accepted Answer

A) True 
 B)False

Question 9

From the following adjusted trial balance, journalize the necessary closing entries. Prepare a post-closing trial balance.

Accepted Answer

The answer of From the following adjusted trial balance, journalize...

Question 10

The statement of owner's equity is prepared from information from the asset and liability accounts.

Accepted Answer

A) True 
 B)False

Question 11

The journal entry to close revenue accounts includes

Accepted Answer

A)  debiting the revenue accounts and crediting Income Summary. 
B)  debiting Income Summary and crediting the revenue accounts. 
C)  debiting the revenue accounts and crediting Cash. 
D)  debiting the revenue accounts and crediting the drawing account. 
A)  debiting the revenue accounts and crediting Income Summary. 
B)  debiting Income Summary and crediting the revenue accounts. 
C)  debiting the revenue accounts and crediting Cash. 
D)  debiting the revenue accounts and crediting the drawing account.

Question 12

Changes in owner's equity that result from investments or withdrawals of assets by the owner are included in the

Accepted Answer

A)  statement of owner's equity. 
B)  income statement. 
C)  balance sheet. 
D)  chart of accounts. 
A)  statement of owner's equity. 
B)  income statement. 
C)  balance sheet. 
D)  chart of accounts.

Question 13

Match the terms with the definitions.
-The steps involved in accounting for all of the business activities during an accounting period.

Accepted Answer

A) account form of balance sheet 
B) accounting cycle 
C) classified balance sheet 
D) closing process 
E) current assets
F)current liabilities
G)Income Summary
H)long-term liabilities
I)operating cycle
J)permanent accounts
K)post-closing trial balance
L)property, plant, and equipment
M)report form of balance sheet
N)temporary accounts 
A) account form of balance sheet 
B) accounting cycle 
C) classified balance sheet 
D) closing process 
E) current assets
F)current liabilities
G)Income Summary
H)long-term liabilities
I)operating cycle
J)permanent accounts
K)post-closing trial balance
L)property, plant, and equipment
M)report form of balance sheet
N)temporary accounts

Question 14

Property, plant, and equipment are assets that are expected to serve the business for many years.

Accepted Answer

A) True 
 B)False

Question 15

Adjustments at the end of the period are not formally entered in the journal or posted to the accounts.

Accepted Answer

A) True 
 B)False

Question 16

The total assets amount to $26,000 and the total liabilities amount to $18,000. The amount of the owner's equity is

Accepted Answer

A)  $18,000. 
B)  $44,000. 
C)  $26,000. 
D)  $8,000. 
A)  $18,000. 
B)  $44,000. 
C)  $26,000. 
D)  $8,000.

Question 17

The amount reported in the Balance Sheet columns of the work sheet for the owner's capital represents the

Accepted Answer

A)  ending balance that should be reported on the balance sheet. 
B)  beginning balance. 
C)  beginning balance plus additional investments. 
D)  beginning balance less withdrawals. 
A)  ending balance that should be reported on the balance sheet. 
B)  beginning balance. 
C)  beginning balance plus additional investments. 
D)  beginning balance less withdrawals.

Question 18

To prove the equality of the debit and credit balances in the general ledger accounts after the closing entries have been journalized and posted, prepare the

Accepted Answer

A)  balance sheet. 
B)  income statement. 
C)  adjustments. 
D)  post-closing trial balance. 
A)  balance sheet. 
B)  income statement. 
C)  adjustments. 
D)  post-closing trial balance.

Question 19

From the following partial work sheet for Walter Searing, journalize the closing entries necessary for month-end and prepare a post-closing trial balancE.​   ​
​   ​
​
​

Accepted Answer

The answer of From the following partial work sheet for...

Question 20

Obligations that need not be paid for a long time, usually more than one year, are classified as current liabilities.

Accepted Answer

A) True 
 B)False

Exam 6: Financial Statements and the Closing Process

The end-of-period work sheet is completed after adjusting entries have been recorded and posted.

Cash and other assets that will be converted into cash within one year or the normal operating cycle of the business, whichever is longer, are called

(Appendix) Business transactions can be classified as

The heading for a balance sheet includes the name of the business, the title of the statement, and a period of time.

Closing entries are made in the journal and posted to the ledger accounts.

Adjusting entries are recorded and posted after closing entries.

The income summary account appears on the income statement at the end of the accounting period.

Long-term liabilities are liabilities that are due in a period longer than one year.

From the following adjusted trial balance, journalize the necessary closing entries. Prepare a post-closing trial balance.

The statement of owner's equity is prepared from information from the asset and liability accounts.

The journal entry to close revenue accounts includes

Changes in owner's equity that result from investments or withdrawals of assets by the owner are included in the

Match the terms with the definitions. -The steps involved in accounting for all of the business activities during an accounting period.

Property, plant, and equipment are assets that are expected to serve the business for many years.

Adjustments at the end of the period are not formally entered in the journal or posted to the accounts.

The total assets amount to $26,000 and the total liabilities amount to $18,000. The amount of the owner's equity is

The amount reported in the Balance Sheet columns of the work sheet for the owner's capital represents the

To prove the equality of the debit and credit balances in the general ledger accounts after the closing entries have been journalized and posted, prepare the

From the following partial work sheet for Walter Searing, journalize the closing entries necessary for month-end and prepare a post-closing trial balancE.​ ​ ​ ​ ​ ​

Obligations that need not be paid for a long time, usually more than one year, are classified as current liabilities.

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Accounting for Cash

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for Accounts Receivable

Accounting for Notes and Interest

Accounting for Long-Term Assets

Accounting for Partnerships

Corporations: Organization and Capital Stocks

Corporations: Earnings, Taxes, Distributions, and the Retained Earnings Statement

Corporations: Bonds

Statement of Cash Flows

Analysis of Financial Statements

Departmental Accounting

Manufacturing Accounting: The Job Order Cost System

Manufacturing Accounting: The Work Sheet and Financial Statements

Filters

From the following partial work sheet for Walter Searing, journalize the closing entries necessary for month-end and prepare a post-closing trial balancE.