Question 1

The income statement for the year 2014 of Poole Co. contains the following information:   The entry to close the revenue account includes a

Accepted Answer

A)  debit to Income Summary for $2,500. 
B)  credit to Income Summary for $2,500. 
C)  debit to Revenues for $75,000. 
D)  credit to Revenues for $75,000. 
A)  debit to Income Summary for $2,500. 
B)  credit to Income Summary for $2,500. 
C)  debit to Revenues for $75,000. 
D)  credit to Revenues for $75,000.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

IFRS requires that current assets be reported on the statement of financial position in the order of their liquidity.

Accepted Answer

A) True 
 B)False

Question 4

To close net income to Retained Earnings Income Summary is debited and Retained Earnings is credited.

Accepted Answer

A) True 
 B)False

Question 5

Current liabilities are obligations that the company is to pay within the coming year.

Accepted Answer

A) True 
 B)False

Question 6

A worksheet is a mandatory form that must be prepared along with an income statement and statement of financial position.

Accepted Answer

A) True 
 B)False

Question 7

Use the following data, taken from the adjusted trial balance, for 70 and 71.  
-What amount will be reflected for Retained Earnings in the Statement of Financial Position columns of the worksheet?

Accepted Answer

A)  €996 
B)  €760 
C)  €696 
D)  €1,060 
A)  €996 
B)  €760 
C)  €696 
D)  €1,060

Question 8

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

Accepted Answer

A) True 
 B)False

Question 9

A post-closing trial balance should be prepared

Accepted Answer

A)  before closing entries are posted to the ledger accounts. 
B)  after closing entries are posted to the ledger accounts. 
C)  before adjusting entries are posted to the ledger accounts. 
D)  only if an error in the accounts is detected. 
A)  before closing entries are posted to the ledger accounts. 
B)  after closing entries are posted to the ledger accounts. 
C)  before adjusting entries are posted to the ledger accounts. 
D)  only if an error in the accounts is detected.

Question 10

The first step in preparing a worksheet is to prepare a ______________ from the general ledger accounts.

Accepted Answer

The answer of The first step in preparing a worksheet...

Question 11

The permanent accounts appear on which financial statement?

Accepted Answer

A)  Statement of Financial Position. 
B)  Income Statement. 
C)  Retained Earnings Statement. 
D)  Statement of Cash Flows. 
A)  Statement of Financial Position. 
B)  Income Statement. 
C)  Retained Earnings Statement. 
D)  Statement of Cash Flows.

Question 12

Reversing entries will always affect statement of financial position accounts.

Accepted Answer

A) True 
 B)False

Question 13

Closing entries are journalized after adjusting entries have been journalized.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an optional step in the accounting cycle?

Accepted Answer

A)  Adjusting entries 
B)  Closing entries 
C)  Correcting entries 
D)  Reversing entries 
A)  Adjusting entries 
B)  Closing entries 
C)  Correcting entries 
D)  Reversing entries

Question 15

The most efficient way to accomplish closing entries is to

Accepted Answer

A)  credit the income summary account for each revenue account balance. 
B)  debit the income summary account for each expense account balance. 
C)  credit the dividends account balance directly to the income summary account. 
D)  credit the income summary account for total revenues and debit the income summary account for total expenses. 
A)  credit the income summary account for each revenue account balance. 
B)  debit the income summary account for each expense account balance. 
C)  credit the dividends account balance directly to the income summary account. 
D)  credit the income summary account for total revenues and debit the income summary account for total expenses.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Use the following income statement for the year 2014 for Melges Company to prepare entries to close the revenue and expense accounts for the company.
Service revenue €85,300
Expenses:

Accepted Answer

The answer of Use the following income statement for the...

Question 18

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

Accepted Answer

A)  $660,000. 
B)  $450,000. 
C)  $900,000. 
D)  $540,000. 
A)  $660,000. 
B)  $450,000. 
C)  $900,000. 
D)  $540,000.

Question 19

When constructing a worksheet, accounts are often needed that are not listed in the trial balance already entered on the worksheet from the ledger. Where should these additional accounts be shown on the worksheet?

Accepted Answer

A)  They should be inserted in alphabetical order into the trial balance accounts already given. 
B)  They should be inserted in chart of account order into the trial balance already given. 
C)  They should be inserted on the lines immediately below the trial balance totals. 
D)  They should not be inserted on the trial balance until the next accounting period. 
A)  They should be inserted in alphabetical order into the trial balance accounts already given. 
B)  They should be inserted in chart of account order into the trial balance already given. 
C)  They should be inserted on the lines immediately below the trial balance totals. 
D)  They should not be inserted on the trial balance until the next accounting period.

Question 20

The use of reversing entries will change the amounts reported in the statement of financial position.

Accepted Answer

A) True 
 B)False

The income statement for the year 2014 of Poole Co. contains the following information: The entry to close the revenue account includes a

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

IFRS requires that current assets be reported on the statement of financial position in the order of their liquidity.

To close net income to Retained Earnings Income Summary is debited and Retained Earnings is credited.

Current liabilities are obligations that the company is to pay within the coming year.

A worksheet is a mandatory form that must be prepared along with an income statement and statement of financial position.

Use the following data, taken from the adjusted trial balance, for 70 and 71. -What amount will be reflected for Retained Earnings in the Statement of Financial Position columns of the worksheet?

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

A post-closing trial balance should be prepared

The first step in preparing a worksheet is to prepare a ______________ from the general ledger accounts.

The permanent accounts appear on which financial statement?

Reversing entries will always affect statement of financial position accounts.

Closing entries are journalized after adjusting entries have been journalized.

Which of the following is an optional step in the accounting cycle?

The most efficient way to accomplish closing entries is to

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

Use the following income statement for the year 2014 for Melges Company to prepare entries to close the revenue and expense accounts for the company. Service revenue €85,300 Expenses:

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

When constructing a worksheet, accounts are often needed that are not listed in the trial balance already entered on the worksheet from the ledger. Where should these additional accounts be shown on the worksheet?

The use of reversing entries will change the amounts reported in the statement of financial position.

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, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Accounting Principles and Contingent Liabilities in Business Operations

Filters

Exam 4: Completing the Accounting Cycle

The income statement for the year 2014 of Poole Co. contains the following information: The entry to close the revenue account includes a

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

IFRS requires that current assets be reported on the statement of financial position in the order of their liquidity.

To close net income to Retained Earnings Income Summary is debited and Retained Earnings is credited.

Current liabilities are obligations that the company is to pay within the coming year.

A worksheet is a mandatory form that must be prepared along with an income statement and statement of financial position.

Use the following data, taken from the adjusted trial balance, for 70 and 71. -What amount will be reflected for Retained Earnings in the Statement of Financial Position columns of the worksheet?

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

A post-closing trial balance should be prepared

The first step in preparing a worksheet is to prepare a ______________ from the general ledger accounts.

The permanent accounts appear on which financial statement?

Reversing entries will always affect statement of financial position accounts.

Closing entries are journalized after adjusting entries have been journalized.

Which of the following is an optional step in the accounting cycle?

The most efficient way to accomplish closing entries is to

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

Use the following income statement for the year 2014 for Melges Company to prepare entries to close the revenue and expense accounts for the company. Service revenue €85,300 Expenses:

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

When constructing a worksheet, accounts are often needed that are not listed in the trial balance already entered on the worksheet from the ledger. Where should these additional accounts be shown on the worksheet?

The use of reversing entries will change the amounts reported in the statement of financial position.

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, Share Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Accounting Principles and Contingent Liabilities in Business Operations

Filters