Question 1

Give the definition of current assets and current liabilities and provide two examples of each.

Accepted Answer

Current assets are assets that a company

Question 2

The worksheet does not show

Accepted Answer

A)  net income or loss for the period. 
B)  revenue and expense account balances. 
C)  the ending balance in Retained Earnings . 
D)  the trial balance before adjustments. 
A)  net income or loss for the period. 
B)  revenue and expense account balances. 
C)  the ending balance in Retained Earnings . 
D)  the trial balance before adjustments.

Question 3

The following data (in thousands) is available for Chang Company.   The subtotal of the last asset classification on the 2014 Statement of Financial Position is:

Accepted Answer

A)  ¥11,690. 
B)  ¥18,620. 
C)  ¥23,000. 
D)  ¥20,380. 
A)  ¥11,690. 
B)  ¥18,620. 
C)  ¥23,000. 
D)  ¥20,380.

Question 4

Cash and office supplies are both classified as current assets.

Accepted Answer

A) True 
 B)False

Question 5

Equipment is classified in the statement of financial position as

Accepted Answer

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

Question 6

The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2014:   What is the book value of the equipment at December 31, 2014?

Accepted Answer

A)  ¥714,000 
B)  ¥630,000 
C)  ¥546,000 
D)  ¥510,000 
A)  ¥714,000 
B)  ¥630,000 
C)  ¥546,000 
D)  ¥510,000

Question 7

Which of the following steps in the accounting cycle would not generally be performed daily?

Accepted Answer

A)  Journalize transactions 
B)  Post to ledger accounts 
C)  Prepare adjusting entries 
D)  Analyze business transactions 
A)  Journalize transactions 
B)  Post to ledger accounts 
C)  Prepare adjusting entries 
D)  Analyze business transactions

Question 8

Which account balance will change between the adjusted trial balance and the post-closing trial balance?

Accepted Answer

A)  Retained Earnings 
B)  Share Capital-Ordinary 
C)  Interest Payable 
D)  Accumulated Depreciation 
A)  Retained Earnings 
B)  Share Capital-Ordinary 
C)  Interest Payable 
D)  Accumulated Depreciation

Question 9

Closing entries may be prepared from all but which one of the following sources?

Accepted Answer

A)  Adjusted balances in the ledger 
B)  Income statement and statement of financial position columns of the worksheet 
C)  Statement of financial position 
D)  Income and retained earnings statements 
A)  Adjusted balances in the ledger 
B)  Income statement and statement of financial position columns of the worksheet 
C)  Statement of financial position 
D)  Income and retained earnings statements

Question 10

A post-closing trial balance will show

Accepted Answer

A)  zero balances for all accounts. 
B)  zero balances for statement of financial position accounts. 
C)  only statement of financial position accounts. 
D)  only income statement accounts. 
A)  zero balances for all accounts. 
B)  zero balances for statement of financial position accounts. 
C)  only statement of financial position accounts. 
D)  only income statement accounts.

Question 11

Which of the following is a true statement about closing the books of a corporation?

Accepted Answer

A)  Expenses are closed to the Expense Summary account. 
B)  Only revenues are closed to the Income Summary account. 
C)  Revenues and expenses are closed to the Income Summary account. 
D)  Revenues, expenses, and the Dividends account are closed to the Income Summary account. 
A)  Expenses are closed to the Expense Summary account. 
B)  Only revenues are closed to the Income Summary account. 
C)  Revenues and expenses are closed to the Income Summary account. 
D)  Revenues, expenses, and the Dividends account are closed to the Income Summary account.

Question 12

When using a worksheet, adjusting entries are journalized

Accepted Answer

A)  after the worksheet is completed and before financial statements are prepared. 
B)  before the adjustments are entered on to the worksheet. 
C)  after the worksheet is completed and after financial statements are prepared. 
D)  before the adjusted trial balance is extended to the proper financial statement columns. 
A)  after the worksheet is completed and before financial statements are prepared. 
B)  before the adjustments are entered on to the worksheet. 
C)  after the worksheet is completed and after financial statements are prepared. 
D)  before the adjusted trial balance is extended to the proper financial statement columns.

Question 13

Which of the following is in the proper position?

Accepted Answer

A)  Equity;Current Liabilities;Non-current Liabilities. 
B)  Equity;Non-current Liabilities;Current Liabilities. 
C)  Current Liabilities;Non-current Liabilities;Equity. 
D)  Non-Current Liabilities; Current Liabilities;Equity. 
A)  Equity;Current Liabilities;Non-current Liabilities. 
B)  Equity;Non-current Liabilities;Current Liabilities. 
C)  Current Liabilities;Non-current Liabilities;Equity. 
D)  Non-Current Liabilities; Current Liabilities;Equity.

Question 14

North Company prepared the following adjusting entries at year end on December 31, 2014:   In an effort to minimize errors in recording transactions, North Company utilizes reversing entries.
Instructions
Prepare reversing entries on January 1, 2014, for the adjusting entries given where appropriate.

Accepted Answer

The answer of North Company prepared the following adjusting entries...

Question 15

Assuming that there is a net loss for the period, debits equal credits in all but which section of the worksheet?

Accepted Answer

A)  Income statement columns 
B)  Adjustments columns 
C)  Trial balance columns 
D)  Adjusted trial balance columns 
A)  Income statement columns 
B)  Adjustments columns 
C)  Trial balance columns 
D)  Adjusted trial balance columns

Question 16

Which classification of assets will appear last in the Statement of Financial Position?

Accepted Answer

A)  Intangible Assets. 
B)  Current Assets. 
C)  Long-term investments. 
D)  Property,Plant and Equipment. 
A)  Intangible Assets. 
B)  Current Assets. 
C)  Long-term investments. 
D)  Property,Plant and Equipment.

Question 17

The final step in the accounting cycle is to prepare

Accepted Answer

A)  closing entries. 
B)  financial statements. 
C)  a post-closing trial balance. 
D)  adjusting entries. 
A)  closing entries. 
B)  financial statements. 
C)  a post-closing trial balance. 
D)  adjusting entries.

Question 18

The purpose of the post-closing trial balances is to prove the equality of the Statement of Financial Position.

Accepted Answer

A) True 
 B)False

Question 19

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 20

The operating cycle of a company is determined by the number of years the company has been operating.

Accepted Answer

A) True 
 B)False

Give the definition of current assets and current liabilities and provide two examples of each.

The worksheet does not show

The following data (in thousands) is available for Chang Company. The subtotal of the last asset classification on the 2014 Statement of Financial Position is:

Cash and office supplies are both classified as current assets.

Equipment is classified in the statement of financial position as

The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2014: What is the book value of the equipment at December 31, 2014?

Which of the following steps in the accounting cycle would not generally be performed daily?

Which account balance will change between the adjusted trial balance and the post-closing trial balance?

Closing entries may be prepared from all but which one of the following sources?

A post-closing trial balance will show

Which of the following is a true statement about closing the books of a corporation?

When using a worksheet, adjusting entries are journalized

Which of the following is in the proper position?

North Company prepared the following adjusting entries at year end on December 31, 2014: In an effort to minimize errors in recording transactions, North Company utilizes reversing entries. Instructions Prepare reversing entries on January 1, 2014, for the adjusting entries given where appropriate.

Assuming that there is a net loss for the period, debits equal credits in all but which section of the worksheet?

Which classification of assets will appear last in the Statement of Financial Position?

The final step in the accounting cycle is to prepare

The purpose of the post-closing trial balances is to prove the equality of the Statement of Financial Position.

The most efficient way to accomplish closing entries is to

The operating cycle of a company is determined by the number of years the company has been operating.

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

Give the definition of current assets and current liabilities and provide two examples of each.

The worksheet does not show

The following data (in thousands) is available for Chang Company. The subtotal of the last asset classification on the 2014 Statement of Financial Position is:

Cash and office supplies are both classified as current assets.

Equipment is classified in the statement of financial position as

The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2014: What is the book value of the equipment at December 31, 2014?

Which of the following steps in the accounting cycle would not generally be performed daily?

Which account balance will change between the adjusted trial balance and the post-closing trial balance?

Closing entries may be prepared from all but which one of the following sources?

A post-closing trial balance will show

Which of the following is a true statement about closing the books of a corporation?

When using a worksheet, adjusting entries are journalized

Which of the following is in the proper position?

North Company prepared the following adjusting entries at year end on December 31, 2014: In an effort to minimize errors in recording transactions, North Company utilizes reversing entries. Instructions Prepare reversing entries on January 1, 2014, for the adjusting entries given where appropriate.

Assuming that there is a net loss for the period, debits equal credits in all but which section of the worksheet?

Which classification of assets will appear last in the Statement of Financial Position?

The final step in the accounting cycle is to prepare

The purpose of the post-closing trial balances is to prove the equality of the Statement of Financial Position.

The most efficient way to accomplish closing entries is to

The operating cycle of a company is determined by the number of years the company has been operating.

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