Question 1

Which of the following would not be classified as a non-current liability?

Accepted Answer

A)  Current maturities of long-term debt 
B)  Bonds payable 
C)  Mortgage payable 
D)  Lease liabilities 
A)  Current maturities of long-term debt 
B)  Bonds payable 
C)  Mortgage payable 
D)  Lease liabilities

Question 2

Vanguard Company had the following adjusted trial balance at December 31, 2014.   Instructions
(a) Journalize the entries required to close the accounts.
(b) Prepare a retained earnings statement for the year ended December 31, 2014.

Accepted Answer

The answer of Vanguard Company had the following adjusted trial...

Question 3

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 4

The two optional steps in the accounting cycle are preparing

Accepted Answer

A)  a post-closing trial balance and reversing entries. 
B)  a worksheet and post-closing trial balances. 
C)  reversing entries and a worksheet. 
D)  an adjusted trial balance and a post-closing trial balance. 
A)  a post-closing trial balance and reversing entries. 
B)  a worksheet and post-closing trial balances. 
C)  reversing entries and a worksheet. 
D)  an adjusted trial balance and a post-closing trial balance.

Question 5

Closing entries are necessary for

Accepted Answer

A)  permanent accounts only. 
B)  temporary accounts only. 
C)  both permanent and temporary accounts. 
D)  permanent or real accounts only. 
A)  permanent accounts only. 
B)  temporary accounts only. 
C)  both permanent and temporary accounts. 
D)  permanent or real accounts only.

Question 6

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 7

Intangible assets are

Accepted Answer

A)  listed under current assets on the statement of financial position. 
B)  not listed on the statement of financial position because they do not have physical substance. 
C)  non-current resources. 
D)  listed as a long-term investment on the statement of financial position. 
A)  listed under current assets on the statement of financial position. 
B)  not listed on the statement of financial position because they do not have physical substance. 
C)  non-current resources. 
D)  listed as a long-term investment on the statement of financial position.

Question 8

Scot Company prepared the following adjusting entries at year end on December 31, 2013:
(a) Interest Expense 100
Interest Payable 100
(b) Interest Receivable 150
Interest Revenue 150
(c) Salaries and Wages Expense 4,000
Salaries and Wages Payable 4,000
In an effort to minimize errors in recording transactions, F. Scot Company utilizes reversing entries. Prepare reversing entries on January 1, 2014.

Accepted Answer

(a) Reverse the entry to accrue interest

Question 9

The process of transferring net income (or loss) for the period to Retained Earnings is accomplished by making ______________ entries.

Accepted Answer

The answer of The process of transferring net income (or...

Question 10

Reversing entries will always affect statement of financial position accounts.

Accepted Answer

A) True 
 B)False

Question 11

Statement of financial position accounts are considered to be

Accepted Answer

A)  temporary owner's equity accounts. 
B)  permanent accounts. 
C)  capital accounts. 
D)  nominal accounts. 
A)  temporary owner's equity accounts. 
B)  permanent accounts. 
C)  capital accounts. 
D)  nominal accounts.

Question 12

After all closing entries have been journalized and posted, the final step in the accounting cycle is to prepare a ______________ trial balance.

Accepted Answer

The answer of After all closing entries have been journalized...

Question 13

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 14

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 15

The following information (in thousands) is available for Wang Company for the year ended December 31, 2014:   Instructions
Use the above information to prepare a classified statement of financial position for the year ended December 31, 2014.

Accepted Answer

The answer of The following information (in thousands) is available...

Question 16

Closing entries

Accepted Answer

A)  are prepared before the financial statements. 
B)  reduce the number of permanent accounts. 
C)  cause the revenue and expense accounts to have zero balances. 
D)  summarize the activity in every account. 
A)  are prepared before the financial statements. 
B)  reduce the number of permanent accounts. 
C)  cause the revenue and expense accounts to have zero balances. 
D)  summarize the activity in every account.

Question 17

In preparing closing entries

Accepted Answer

A)  each revenue account will be credited. 
B)  each expense account will be credited. 
C)  the retained earnings account will be debited if there is net income for the period. 
D)  the dividends account will be debited. 
A)  each revenue account will be credited. 
B)  each expense account will be credited. 
C)  the retained earnings account will be debited if there is net income for the period. 
D)  the dividends account will be debited.

Question 18

Use the following data, taken from the adjusted trial balance, for 70 and 71.  
-Which of the following permanent account is changed during the closing process?

Accepted Answer

A)  Share Capital-Ordinary. 
B)  Retained Earnings. 
C)  Unearned Service Revenue. 
D)  None of these answer choices are correct. 
A)  Share Capital-Ordinary. 
B)  Retained Earnings. 
C)  Unearned Service Revenue. 
D)  None of these answer choices are correct.

Question 19

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 20

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

Accepted Answer

A)  ¥3,850. 
B)  ¥2,622. 
C)  ¥26,126. 
D)  ¥2,888. 
A)  ¥3,850. 
B)  ¥2,622. 
C)  ¥26,126. 
D)  ¥2,888.

Which of the following would not be classified as a non-current liability?

Vanguard Company had the following adjusted trial balance at December 31, 2014. Instructions (a) Journalize the entries required to close the accounts. (b) Prepare a retained earnings statement for the year ended December 31, 2014.

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

The two optional steps in the accounting cycle are preparing

Closing entries are necessary for

The permanent accounts appear on which financial statement?

Intangible assets are

The process of transferring net income (or loss) for the period to Retained Earnings is accomplished by making ______________ entries.

Reversing entries will always affect statement of financial position accounts.

Statement of financial position accounts are considered to be

After all closing entries have been journalized and posted, the final step in the accounting cycle is to prepare a ______________ trial balance.

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

The following information (in thousands) is available for Wang Company for the year ended December 31, 2014: Instructions Use the above information to prepare a classified statement of financial position for the year ended December 31, 2014.

Closing entries

In preparing closing entries

Use the following data, taken from the adjusted trial balance, for 70 and 71. -Which of the following permanent account is changed during the closing process?

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

Which of the following would not be classified as a non-current liability?

Vanguard Company had the following adjusted trial balance at December 31, 2014. Instructions (a) Journalize the entries required to close the accounts. (b) Prepare a retained earnings statement for the year ended December 31, 2014.

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

The two optional steps in the accounting cycle are preparing

Closing entries are necessary for

The permanent accounts appear on which financial statement?

Intangible assets are

The process of transferring net income (or loss) for the period to Retained Earnings is accomplished by making ______________ entries.

Reversing entries will always affect statement of financial position accounts.

Statement of financial position accounts are considered to be

After all closing entries have been journalized and posted, the final step in the accounting cycle is to prepare a ______________ trial balance.

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

The following information (in thousands) is available for Wang Company for the year ended December 31, 2014: Instructions Use the above information to prepare a classified statement of financial position for the year ended December 31, 2014.

Closing entries

In preparing closing entries

Use the following data, taken from the adjusted trial balance, for 70 and 71. -Which of the following permanent account is changed during the closing process?

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