Question 1

The following information is for Acme Auto Supplies:   The total dollar amount of assets to be classified as property, plant, and equipment is

Accepted Answer

A)  $945,000. 
B)  $735,000. 
C)  $495,000. 
D)  $585,000. 
A)  $945,000. 
B)  $735,000. 
C)  $495,000. 
D)  $585,000.

Question 2

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 3

Identify which of the following are temporary accounts of San Juan Company.
(1) Retained Earnings
(2) Dividends
(3) Equipment
(4) Accumulated Depreciation-Equipment
(5) Depreciation Expense

Accepted Answer

(2) Divide

Question 4

The financial statement columns of the worksheet for Dr. Gumbo's Catering Company as of December 31, 2014 are as follows:   Instructions
Prepare a classified statement of financial position for Dr. Gumbo's Catering Company.

Accepted Answer

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

Question 5

A company has purchased a trust of land and expects to build a production plant on the land in approximately 5 years. During the 5 years before construction, the land will be idle. Under GAAP, the land should be reported as

Accepted Answer

A)  a long-term investment. 
B)  an intangible asset. 
C)  property, plant, and equipment. 
D)  land expense. 
A)  a long-term investment. 
B)  an intangible asset. 
C)  property, plant, and equipment. 
D)  land expense.

Question 6

Each of the following accounts is closed to Income Summary except

Accepted Answer

A)  Expenses. 
B)  Dividends. 
C)  Revenues. 
D)  All of these answer choices are correct. 
A)  Expenses. 
B)  Dividends. 
C)  Revenues. 
D)  All of these answer choices are correct.

Question 7

A reversing entry

Accepted Answer

A)  reverses entries that were made in error. 
B)  is the exact opposite of an adjusting entry made in a previous period. 
C)  is made when a business disposes of an asset it previously purchased. 
D)  is made when a company sustains a loss in one period and reverses the effect with a profit in the next period. 
A)  reverses entries that were made in error. 
B)  is the exact opposite of an adjusting entry made in a previous period. 
C)  is made when a business disposes of an asset it previously purchased. 
D)  is made when a company sustains a loss in one period and reverses the effect with a profit in the next period.

Question 8

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 9

Intangible assets are customarily the first items listed on a classified statement of financial position.

Accepted Answer

A) True 
 B)False

Question 10

An incorrect debit to Accounts Receivable instead of the correct account Notes Receivable does not require a correcting entry because total assets will not be misstated.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  debit to Income Summary for $2,500. 
B)  credit to Income Summary for $2,500. 
C)  debit to Income Summary for $77,500. 
D)  debit to Salaries and Wages Expense for $45,000. 
A)  debit to Income Summary for $2,500. 
B)  credit to Income Summary for $2,500. 
C)  debit to Income Summary for $77,500. 
D)  debit to Salaries and Wages Expense for $45,000.

Question 12

The relationship between current assets and current liabilities is important in evaluating a company's

Accepted Answer

A)  profitability. 
B)  liquidity. 
C)  market value. 
D)  accounting cycle. 
A)  profitability. 
B)  liquidity. 
C)  market value. 
D)  accounting cycle.

Question 13

At Outersanctum Company, the following errors were discovered after the transactions had been journalized and posted. 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

The answer of At Outersanctum Company, the following errors were...

Question 14

The adjustments on a worksheet can be posted directly to the accounts in the ledger from the worksheet.

Accepted Answer

A) True 
 B)False

Question 15

Which one of the following is an optional step in the accounting cycle of a business enterprise?

Accepted Answer

A)  Analyze business transactions 
B)  Prepare a worksheet 
C)  Prepare a trial balance 
D)  Post to the ledger accounts 
A)  Analyze business transactions 
B)  Prepare a worksheet 
C)  Prepare a trial balance 
D)  Post to the ledger accounts

Question 16

Two permanent accounts that are part of the equity are ______________ and ______________.

Accepted Answer

Two permanent accounts that are part of

Question 17

Closing entries are made

Accepted Answer

A)  in order to terminate the business as an operating entity. 
B)  so that all assets, liabilities, and equity accounts will have zero balances when the next accounting period starts. 
C)  in order to transfer net income (or loss) and dividends to Retained Earnings. 
D)  so that financial statements can be prepared. 
A)  in order to terminate the business as an operating entity. 
B)  so that all assets, liabilities, and equity accounts will have zero balances when the next accounting period starts. 
C)  in order to transfer net income (or loss) and dividends to Retained Earnings. 
D)  so that financial statements can be prepared.

Question 18

After a worksheet has been completed, the statement columns contain all data that are required for the preparation of financial statements.

Accepted Answer

A) True 
 B)False

Question 19

Step number 6 in the accounting cycle includes preparation of the Statement of Financial Position.

Accepted Answer

A) True 
 B)False

Question 20

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.

The following information is for Acme Auto Supplies: The total dollar amount of assets to be classified as property, plant, and equipment is

Preparing a worksheet involves

Identify which of the following are temporary accounts of San Juan Company. (1) Retained Earnings (2) Dividends (3) Equipment (4) Accumulated Depreciation-Equipment (5) Depreciation Expense

The financial statement columns of the worksheet for Dr. Gumbo's Catering Company as of December 31, 2014 are as follows: Instructions Prepare a classified statement of financial position for Dr. Gumbo's Catering Company.

A company has purchased a trust of land and expects to build a production plant on the land in approximately 5 years. During the 5 years before construction, the land will be idle. Under GAAP, the land should be reported as

Each of the following accounts is closed to Income Summary except

A reversing entry

A post-closing trial balance is prepared

Intangible assets are customarily the first items listed on a classified statement of financial position.

An incorrect debit to Accounts Receivable instead of the correct account Notes Receivable does not require a correcting entry because total assets will not be misstated.

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

The relationship between current assets and current liabilities is important in evaluating a company's

The adjustments on a worksheet can be posted directly to the accounts in the ledger from the worksheet.

Which one of the following is an optional step in the accounting cycle of a business enterprise?

Two permanent accounts that are part of the equity are and .

Closing entries are made

After a worksheet has been completed, the statement columns contain all data that are required for the preparation of financial statements.

Step number 6 in the accounting cycle includes preparation of the Statement of Financial Position.

Closing entries are

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 following information is for Acme Auto Supplies: The total dollar amount of assets to be classified as property, plant, and equipment is

Preparing a worksheet involves

Identify which of the following are temporary accounts of San Juan Company. (1) Retained Earnings (2) Dividends (3) Equipment (4) Accumulated Depreciation-Equipment (5) Depreciation Expense

The financial statement columns of the worksheet for Dr. Gumbo's Catering Company as of December 31, 2014 are as follows: Instructions Prepare a classified statement of financial position for Dr. Gumbo's Catering Company.

A company has purchased a trust of land and expects to build a production plant on the land in approximately 5 years. During the 5 years before construction, the land will be idle. Under GAAP, the land should be reported as

Each of the following accounts is closed to Income Summary except

A reversing entry

A post-closing trial balance is prepared

Intangible assets are customarily the first items listed on a classified statement of financial position.

An incorrect debit to Accounts Receivable instead of the correct account Notes Receivable does not require a correcting entry because total assets will not be misstated.

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

The relationship between current assets and current liabilities is important in evaluating a company's

The adjustments on a worksheet can be posted directly to the accounts in the ledger from the worksheet.

Which one of the following is an optional step in the accounting cycle of a business enterprise?

Two permanent accounts that are part of the equity are ______________ and ______________.

Closing entries are made

After a worksheet has been completed, the statement columns contain all data that are required for the preparation of financial statements.

Step number 6 in the accounting cycle includes preparation of the Statement of Financial Position.

Closing entries are

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

Two permanent accounts that are part of the equity are and .