Question 1

All of the following are property, plant, and equipment except

Accepted Answer

A)  supplies. 
B)  machinery. 
C)  land. 
D)  buildings. 
A)  supplies. 
B)  machinery. 
C)  land. 
D)  buildings.

Question 2

The income statement for the month of June, 2014 of Taylor Enterprises contains the following information:   The entry to close the expense accounts includes a

Accepted Answer

A)  debit to Income Summary for ₤3,900. 
B)  credit to Rent Expense for ₤1,500. 
C)  credit to Income Summary for ₤4,100. 
D)  debit to Salaries and Wages Expense for ₤2,000. 
A)  debit to Income Summary for ₤3,900. 
B)  credit to Rent Expense for ₤1,500. 
C)  credit to Income Summary for ₤4,100. 
D)  debit to Salaries and Wages Expense for ₤2,000.

Question 3

The post-closing trial balance is entered in the first two columns of a worksheet.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Which of the following classification appears last in the Statement of Financial Position?

Accepted Answer

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

Question 6

The Income Summary account is an important account that is used

Accepted Answer

A)  during interim periods. 
B)  in preparing adjusting entries. 
C)  annually in preparing closing entries. 
D)  annually in preparing correcting entries. 
A)  during interim periods. 
B)  in preparing adjusting entries. 
C)  annually in preparing closing entries. 
D)  annually in preparing correcting entries.

Question 7

The income statement and statement of financial position columns of Reed Company's worksheet reflect the following totals:   To enter the net income (or loss) for the period into the above worksheet requires an entry to the

Accepted Answer

A)  income statement debit column and the statement of financial position credit column. 
B)  income statement credit column and the statement of financial position debit column. 
C)  income statement debit column and the income statement credit column. 
D)  statement of financial position debit column and the statement of financial position credit column. 
A)  income statement debit column and the statement of financial position credit column. 
B)  income statement credit column and the statement of financial position debit column. 
C)  income statement debit column and the income statement credit column. 
D)  statement of financial position debit column and the statement of financial position credit column.

Question 8

The following information (in thousands) is for Zháng Office Supplies:   The total amount of assets to be classified as investments is

Accepted Answer

A)  ¥0. 
B)  ¥300,000. 
C)  ¥150,000. 
D)  ¥360,000. 
A)  ¥0. 
B)  ¥300,000. 
C)  ¥150,000. 
D)  ¥360,000.

Question 9

Which of the following depicts the proper sequence of steps in the accounting cycle?

Accepted Answer

A)  Journalize the transactions, analyze business transactions, prepare a trial balance 
B)  Prepare a trial balance, prepare financial statements, prepare adjusting entries 
C)  Prepare a trial balance, prepare adjusting entries, prepare financial statements 
D)  Prepare a trial balance, post to ledger accounts, post adjusting entries 
A)  Journalize the transactions, analyze business transactions, prepare a trial balance 
B)  Prepare a trial balance, prepare financial statements, prepare adjusting entries 
C)  Prepare a trial balance, prepare adjusting entries, prepare financial statements 
D)  Prepare a trial balance, post to ledger accounts, post adjusting entries

Question 10

Closing entries are unnecessary if the business plans to continue operating in the future and issue financial statements each year.

Accepted Answer

A) True 
 B)False

Question 11

An intangible asset

Accepted Answer

A)  does not have physical substance, yet often is very valuable. 
B)  is worthless because it has no physical substance. 
C)  is converted into a tangible asset during the operating cycle. 
D)  cannot be classified on the statement of financial position because it lacks physical substance. 
A)  does not have physical substance, yet often is very valuable. 
B)  is worthless because it has no physical substance. 
C)  is converted into a tangible asset during the operating cycle. 
D)  cannot be classified on the statement of financial position because it lacks physical substance.

Question 12

Current assets under GAAP are listed generally

Accepted Answer

A)  alphabetically. 
B)  by order of liquidity. 
C)  in the reverse order of their expected conversion to cash. 
D)  by importance. 
A)  alphabetically. 
B)  by order of liquidity. 
C)  in the reverse order of their expected conversion to cash. 
D)  by importance.

Question 13

The income statement for the month of June, 2014 of Taylor Enterprises contains the following information:   After the revenue and expense accounts have been closed, the balance in Income Summary will be

Accepted Answer

A)  ₤0. 
B)  a debit balance of ₤3,900. 
C)  a credit balance of ₤3,900. 
D)  a credit balance of ₤8,000. 
A)  ₤0. 
B)  a debit balance of ₤3,900. 
C)  a credit balance of ₤3,900. 
D)  a credit balance of ₤8,000.

Question 14

All of the following statements about the post-closing trial balance are correct except it

Accepted Answer

A)  shows that the accounting equation is in balance. 
B)  provides evidence that the journalizing and posting of closing entries have been properly completed. 
C)  contains only permanent accounts. 
D)  proves that all transactions have been recorded. 
A)  shows that the accounting equation is in balance. 
B)  provides evidence that the journalizing and posting of closing entries have been properly completed. 
C)  contains only permanent accounts. 
D)  proves that all transactions have been recorded.

Question 15

The Income Summary account

Accepted Answer

A)  is a permanent account. 
B)  appears on the statement of financial position. 
C)  appears on the income statement. 
D)  is a temporary account. 
A)  is a permanent account. 
B)  appears on the statement of financial position. 
C)  appears on the income statement. 
D)  is a temporary account.

Question 16

Adjusting entries are prepared from

Accepted Answer

A)  source documents. 
B)  the adjustments columns of the worksheet. 
C)  the general ledger. 
D)  last year's worksheet. 
A)  source documents. 
B)  the adjustments columns of the worksheet. 
C)  the general ledger. 
D)  last year's worksheet.

Question 17

Distinguish between a reversing entry and an adjusting entry. Are reversing entries required?

Accepted Answer

A reversing entry is the exact opposite

Question 18

The following information (in thousands) is for Zháng Office Supplies:   The total amount of assets to be classified as current assets is

Accepted Answer

A)  ¥580,000. 
B)  ¥430,000. 
C)  ¥360,000. 
D)  ¥290,000. 
A)  ¥580,000. 
B)  ¥430,000. 
C)  ¥360,000. 
D)  ¥290,000.

Question 19

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

Accepted Answer

A)  $0. 
B)  $450,000. 
C)  $240,000. 
D)  $540,000. 
A)  $0. 
B)  $450,000. 
C)  $240,000. 
D)  $540,000.

Question 20

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

Accepted Answer

A) True 
 B)False

All of the following are property, plant, and equipment except

The income statement for the month of June, 2014 of Taylor Enterprises contains the following information: The entry to close the expense accounts includes a

The post-closing trial balance is entered in the first two columns of a worksheet.

A reversing entry

Which of the following classification appears last in the Statement of Financial Position?

The Income Summary account is an important account that is used

The income statement and statement of financial position columns of Reed Company's worksheet reflect the following totals: To enter the net income (or loss) for the period into the above worksheet requires an entry to the

The following information (in thousands) is for Zháng Office Supplies: The total amount of assets to be classified as investments is

Which of the following depicts the proper sequence of steps in the accounting cycle?

Closing entries are unnecessary if the business plans to continue operating in the future and issue financial statements each year.

An intangible asset

Current assets under GAAP are listed generally

The income statement for the month of June, 2014 of Taylor Enterprises contains the following information: After the revenue and expense accounts have been closed, the balance in Income Summary will be

All of the following statements about the post-closing trial balance are correct except it

The Income Summary account

Adjusting entries are prepared from

Distinguish between a reversing entry and an adjusting entry. Are reversing entries required?

The following information (in thousands) is for Zháng Office Supplies: The total amount of assets to be classified as current assets is

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

Step number 6 in the accounting cycle includes preparation of 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 and Financial Reporting for Contingent Liabilities and Leases

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Exam 4: Completing the Accounting Cycle

All of the following are property, plant, and equipment except

The income statement for the month of June, 2014 of Taylor Enterprises contains the following information: The entry to close the expense accounts includes a

The post-closing trial balance is entered in the first two columns of a worksheet.

A reversing entry

Which of the following classification appears last in the Statement of Financial Position?

The Income Summary account is an important account that is used

The income statement and statement of financial position columns of Reed Company's worksheet reflect the following totals: To enter the net income (or loss) for the period into the above worksheet requires an entry to the

The following information (in thousands) is for Zháng Office Supplies: The total amount of assets to be classified as investments is

Which of the following depicts the proper sequence of steps in the accounting cycle?

Closing entries are unnecessary if the business plans to continue operating in the future and issue financial statements each year.

An intangible asset

Current assets under GAAP are listed generally

The income statement for the month of June, 2014 of Taylor Enterprises contains the following information: After the revenue and expense accounts have been closed, the balance in Income Summary will be

All of the following statements about the post-closing trial balance are correct except it

The Income Summary account

Adjusting entries are prepared from

Distinguish between a reversing entry and an adjusting entry. Are reversing entries required?

The following information (in thousands) is for Zháng Office Supplies: The total amount of assets to be classified as current assets is

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

Step number 6 in the accounting cycle includes preparation of 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 and Financial Reporting for Contingent Liabilities and Leases

Filters