Question 1

The operating cycle of a company is the average time required to collect the receivables resulting from producing revenues.

Accepted Answer

A) True 
 B)False  False

Question 2

A lawyer collected $630 of legal fees in advance. He erroneously debited Cash for $360 and credited Accounts Receivable for $360. The correcting entry is

Accepted Answer

C

Question 3

Stine Company paid €830 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of €380 and a credit to Accounts Receivable, €380. The correcting entry is

Accepted Answer

D

Question 4

Companies that use GAAP

Accepted Answer

A)  do not have any guidelines as to what should be reported on their balance sheet. 
B)  generally reported current assets before non-current assets on their balance sheet. 
C)  often offset assets against liabilities and shown net assets and net liabilities on their balance sheet rather than the underlying detailed line items. 
D)  may report all their assets on their balance sheet at fair value. 
A)  do not have any guidelines as to what should be reported on their balance sheet. 
B)  generally reported current assets before non-current assets on their balance sheet. 
C)  often offset assets against liabilities and shown net assets and net liabilities on their balance sheet rather than the underlying detailed line items. 
D)  may report all their assets on their balance sheet at fair value.

Question 5

An unacceptable way to make a correcting entry is to

Accepted Answer

A)  reverse the incorrect entry. 
B)  erase the incorrect entry. 
C)  compare the incorrect entry with the correct entry and make a correcting entry to correct the accounts. 
D)  correct it immediately upon discovery. 
A)  reverse the incorrect entry. 
B)  erase the incorrect entry. 
C)  compare the incorrect entry with the correct entry and make a correcting entry to correct the accounts. 
D)  correct it immediately upon discovery.

Question 6

If the total debit column exceeds the total credit column of the income statement columns on a worksheet, then the company has

Accepted Answer

A)  earned net income for the period. 
B)  an error because debits do not equal credits. 
C)  suffered a net loss for the period. 
D)  to make an adjusting entry. 
A)  earned net income for the period. 
B)  an error because debits do not equal credits. 
C)  suffered a net loss for the period. 
D)  to make an adjusting entry.

Question 7

Selected worksheet data for East Carolina Company are presented below.   Instructions
(a) Fill in the missing amounts.
(b) Prepare the adjusting entries that were made.

Accepted Answer

(a) Accounts Receivable-$18000 ($31000 -

Question 8

At the end of an accounting period, all revenue and expense accounts are closed to a temporary account called ______________.

Accepted Answer

The answer of At the end of an accounting period,...

Question 9

Long-term investments would appear in the property, plant, and equipment section of the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 10

The income statement for the year 2014 of Poole Co. contains the following information:   The entry to close Income Summary to Retained Earnings includes

Accepted Answer

A)  a debit to Revenue for $75,000. 
B)  credits to Expenses totalling $77,500. 
C)  a credit to Income Summary for $2,500. 
D)  a credit to Retained Earnings for $2,500. 
A)  a debit to Revenue for $75,000. 
B)  credits to Expenses totalling $77,500. 
C)  a credit to Income Summary for $2,500. 
D)  a credit to Retained Earnings for $2,500.

Question 11

The adjustments columns of the worksheet for Leonardo Company are shown below.   Instructions
(a) Prepare the adjusting entries.
(b) Assuming the adjusted trial balance amount for each account is normal, indicate the financial statement column to which each balance should be extended.

Accepted Answer

The answer of The adjustments columns of the worksheet for...

Question 12

The following items were taken from the post-closing trial balance of Aloma Macarty Company (All pounds are in thousands):   Prepare a classified statement of financial position in good form as of December 31, 2014.

Accepted Answer

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

Question 13

An examination of the accounts of Zin Company for the month of June revealed the following errors after the transactions were journalized and posted. Prepare correcting entries for each of the above assuming the erroneous entries are not reversed.
1. A collection of $750 from R. Joseph, a customer on account, was debited to Cash $750 and credited to Service Revenue, $750.
2. A payment for Advertising Expense costing $620 was debited to Utilities Expense, $260 and credited to Cash $260.
3. A bill for $710 for Supplies purchased on account was debited to Equipment, $170 and credited to Accounts Payable $170.

Accepted Answer

The answer of An examination of the accounts of Zin...

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

It is not true that current assets are assets that a company expects to

Accepted Answer

A)  realize in cash within one year. 
B)  sell within one year. 
C)  use up within one year. 
D)  acquire within one year. 
A)  realize in cash within one year. 
B)  sell within one year. 
C)  use up within one year. 
D)  acquire within one year.

Question 17

The income statement for the month of June, 2014 of Taylor Enterprises contains the following information:   The entry to close Income Summary to Retained Earnings includes

Accepted Answer

A)  a debit to Revenue for ₤8,000. 
B)  credits to Expenses totalling ₤4,100. 
C)  a credit to Income Summary for ₤3,900 
D)  a credit to Retained Earnings for ₤3,900. 
A)  a debit to Revenue for ₤8,000. 
B)  credits to Expenses totalling ₤4,100. 
C)  a credit to Income Summary for ₤3,900 
D)  a credit to Retained Earnings for ₤3,900.

Question 18

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 19

Assets that do not have a physical substance yet often are very valuable are called ______________ assets.

Accepted Answer

The answer of Assets that do not have a physical...

Question 20

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

Accepted Answer

A)  analyzing transactions. 
B)  journalizing and posting adjusting entries. 
C)  preparing a post-closing trial balance. 
D)  posting to ledger accounts. 
A)  analyzing transactions. 
B)  journalizing and posting adjusting entries. 
C)  preparing a post-closing trial balance. 
D)  posting to ledger accounts.

The operating cycle of a company is the average time required to collect the receivables resulting from producing revenues.

A lawyer collected $630 of legal fees in advance. He erroneously debited Cash for $360 and credited Accounts Receivable for $360. The correcting entry is

Stine Company paid €830 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of €380 and a credit to Accounts Receivable, €380. The correcting entry is

Companies that use GAAP

An unacceptable way to make a correcting entry is to

If the total debit column exceeds the total credit column of the income statement columns on a worksheet, then the company has

Selected worksheet data for East Carolina Company are presented below. Instructions (a) Fill in the missing amounts. (b) Prepare the adjusting entries that were made.

At the end of an accounting period, all revenue and expense accounts are closed to a temporary account called ______________.

Long-term investments would appear in the property, plant, and equipment section of the statement of financial position.

The income statement for the year 2014 of Poole Co. contains the following information: The entry to close Income Summary to Retained Earnings includes

The adjustments columns of the worksheet for Leonardo Company are shown below. Instructions (a) Prepare the adjusting entries. (b) Assuming the adjusted trial balance amount for each account is normal, indicate the financial statement column to which each balance should be extended.

The following items were taken from the post-closing trial balance of Aloma Macarty Company (All pounds are in thousands): Prepare a classified statement of financial position in good form as of December 31, 2014.

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

If a company utilizes reversing entries, they will

It is not true that current assets are assets that a company expects to

The income statement for the month of June, 2014 of Taylor Enterprises contains the following information: The entry to close Income Summary to Retained Earnings includes

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

Assets that do not have a physical substance yet often are very valuable are called ______________ assets.

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

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 and Financial Reporting for Contingent Liabilities and Leases

Filters

Exam 4: Completing the Accounting Cycle

The operating cycle of a company is the average time required to collect the receivables resulting from producing revenues.

A lawyer collected $630 of legal fees in advance. He erroneously debited Cash for $360 and credited Accounts Receivable for $360. The correcting entry is

Stine Company paid €830 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of €380 and a credit to Accounts Receivable, €380. The correcting entry is

Companies that use GAAP

An unacceptable way to make a correcting entry is to

If the total debit column exceeds the total credit column of the income statement columns on a worksheet, then the company has

Selected worksheet data for East Carolina Company are presented below. Instructions (a) Fill in the missing amounts. (b) Prepare the adjusting entries that were made.

At the end of an accounting period, all revenue and expense accounts are closed to a temporary account called ______________.

Long-term investments would appear in the property, plant, and equipment section of the statement of financial position.

The income statement for the year 2014 of Poole Co. contains the following information: The entry to close Income Summary to Retained Earnings includes

The adjustments columns of the worksheet for Leonardo Company are shown below. Instructions (a) Prepare the adjusting entries. (b) Assuming the adjusted trial balance amount for each account is normal, indicate the financial statement column to which each balance should be extended.

The following items were taken from the post-closing trial balance of Aloma Macarty Company (All pounds are in thousands): Prepare a classified statement of financial position in good form as of December 31, 2014.

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

If a company utilizes reversing entries, they will

It is not true that current assets are assets that a company expects to

The income statement for the month of June, 2014 of Taylor Enterprises contains the following information: The entry to close Income Summary to Retained Earnings includes

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

Assets that do not have a physical substance yet often are very valuable are called ______________ assets.

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

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 and Financial Reporting for Contingent Liabilities and Leases

Filters