Question 1

The purpose of the post-closing trial balance is to

Accepted Answer

A)  prove that no mistakes were made. 
B)  prove the equality of the statement of financial position account balances that are carried forward into the next accounting period. 
C)  prove the equality of the income statement account balances that are carried forward into the next accounting period. 
D)  list all the statement of financial position accounts in alphabetical order for easy reference. 
A)  prove that no mistakes were made. 
B)  prove the equality of the statement of financial position account balances that are carried forward into the next accounting period. 
C)  prove the equality of the income statement account balances that are carried forward into the next accounting period. 
D)  list all the statement of financial position accounts in alphabetical order for easy reference.

Question 2

The post-closing trial balance will contain only statement of equity accounts and statement of financial position accounts.

Accepted Answer

A) True 
 B)False

Question 3

What is the order in which assets are generally listed on a classified statement of financial position?

Accepted Answer

A)  Current and long-term. 
B)  Intangible assets; long-term investments; property, plant, and equipment; current. 
C)  Long-term investments; property, plant, and equipment; intangible assets; current 
D)  Intangible assets; property, plant, and equipment; long-term investments; current. 
A)  Current and long-term. 
B)  Intangible assets; long-term investments; property, plant, and equipment; current. 
C)  Long-term investments; property, plant, and equipment; intangible assets; current 
D)  Intangible assets; property, plant, and equipment; long-term investments; current.

Question 4

The income statement of Hall Marine Repairs is as follows:   On April 1, the retained earnings account had a balance of ₤12,900. During April, the company paid ₤3,000 in dividends.
Instructions
(a) Prepare closing entries at April 30.
(b) Prepare a retained earnings statement for the month of April.

Accepted Answer

The answer of The income statement of Hall Marine Repairs...

Question 5

Reversing entries are an optional bookkeeping procedure.

Accepted Answer

A) True 
 B)False

Question 6

The first step in preparing a worksheet is to prepare a ______________ from the general ledger accounts.

Accepted Answer

The answer of The first step in preparing a worksheet...

Question 7

The Dividends account is closed to the Income Summary account in order to properly determine net income (or loss) for the period.

Accepted Answer

A) True 
 B)False

Question 8

No permanent account balances are changed in the closing process.

Accepted Answer

A) True 
 B)False

Question 9

The income statement and statement of financial position columns of Reed Company's worksheet reflect the following totals:   The net income (or loss) for the period is

Accepted Answer

A)  $45,000 income. 
B)  $13,000 income. 
C)  $13,000 loss. 
D)  not determinable. 
A)  $45,000 income. 
B)  $13,000 income. 
C)  $13,000 loss. 
D)  not determinable.

Question 10

Which of the following statements is false?

Accepted Answer

A)  Under GAAP, the statement of financial position is usually referred to as the statement of assets and equity. 
B)  The FASB and IASB are working on a joint conceptual framework project. 
C)  Under IFRS, companies sometimes net liabilities against assets to report "net assets". 
D)  Assets equals liabilities plus stockholders' equity. 
A)  Under GAAP, the statement of financial position is usually referred to as the statement of assets and equity. 
B)  The FASB and IASB are working on a joint conceptual framework project. 
C)  Under IFRS, companies sometimes net liabilities against assets to report "net assets". 
D)  Assets equals liabilities plus stockholders' equity.

Question 11

The income statement for the month of June, 2014 of Taylor Enterprises contains the following information:   At June 1, 2014, Taylor reported Retained Earnings of ₤35,000. The company paid no dividends during June. At June 30, 2014, the company will report Retained Earnings of

Accepted Answer

A)  ₤35,000. 
B)  ₤43,000. 
C)  ₤38,900. 
D)  ₤31,100. 
A)  ₤35,000. 
B)  ₤43,000. 
C)  ₤38,900. 
D)  ₤31,100.

Question 12

The net income (or loss) for the period

Accepted Answer

A)  is found by computing the difference between the income statement credit column and the statement of financial position credit column on the worksheet. 
B)  cannot be found on the worksheet. 
C)  is found by computing the difference between the income statement columns of the worksheet. 
D)  is found by computing the difference between the trial balance totals and the adjusted trial balance totals. 
A)  is found by computing the difference between the income statement credit column and the statement of financial position credit column on the worksheet. 
B)  cannot be found on the worksheet. 
C)  is found by computing the difference between the income statement columns of the worksheet. 
D)  is found by computing the difference between the trial balance totals and the adjusted trial balance totals.

Question 13

The ______________ of a company is the average time that it takes to purchase inventory, selll it on account, and then collect cash from customers.

Accepted Answer

The term you're looking for is the "cash

Question 14

Instructions
Prepare the end of the period closing entries for the Quick-E Delivery Service.

Accepted Answer

The answer of Instructions
Prepare the end of the period closing...

Question 15

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

Accepted Answer

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

Question 16

A liability is classified as a current liability if the company is to pay it within the forthcoming year.

Accepted Answer

A) True 
 B)False

Question 17

A correcting entry

Accepted Answer

A)  must involve one statement of financial position account and one income statement account. 
B)  is another name for a closing entry. 
C)  may involve any combination of accounts. 
D)  is a required step in the accounting cycle. 
A)  must involve one statement of financial position account and one income statement account. 
B)  is another name for a closing entry. 
C)  may involve any combination of accounts. 
D)  is a required step in the accounting cycle.

Question 18

The following data (in thousands) is available for Chang Company.   Total assets on the Statement of Financial Position for 2014 are:

Accepted Answer

A)  ¥43,908. 
B)  ¥32,598. 
C)  ¥55,218. 
D)  ¥30,838. 
A)  ¥43,908. 
B)  ¥32,598. 
C)  ¥55,218. 
D)  ¥30,838.

Question 19

The temporary account balances ultimately wind up in what account?

Accepted Answer

A)  Income Summary. 
B)  Retained Earnings. 
C)  Share Capital-Ordinary. 
D)  Comprehensive Income. 
A)  Income Summary. 
B)  Retained Earnings. 
C)  Share Capital-Ordinary. 
D)  Comprehensive Income.

Question 20

The following selected account balances appear on the December 31, 2014 statement of financial position of Chen Co.   What is the total amount of property, plant, and equipment that will be reported on the statement of financial position?

Accepted Answer

A)  $3,900,000 
B)  $3,300,000 
C)  $4,800,000 
D)  $2,850,000 
A)  $3,900,000 
B)  $3,300,000 
C)  $4,800,000 
D)  $2,850,000

The purpose of the post-closing trial balance is to

The post-closing trial balance will contain only statement of equity accounts and statement of financial position accounts.

What is the order in which assets are generally listed on a classified statement of financial position?

Reversing entries are an optional bookkeeping procedure.

The first step in preparing a worksheet is to prepare a ______________ from the general ledger accounts.

The Dividends account is closed to the Income Summary account in order to properly determine net income (or loss) for the period.

No permanent account balances are changed in the closing process.

The income statement and statement of financial position columns of Reed Company's worksheet reflect the following totals: The net income (or loss) for the period is

Which of the following statements is false?

The income statement for the month of June, 2014 of Taylor Enterprises contains the following information: At June 1, 2014, Taylor reported Retained Earnings of ₤35,000. The company paid no dividends during June. At June 30, 2014, the company will report Retained Earnings of

The net income (or loss) for the period

The ______________ of a company is the average time that it takes to purchase inventory, selll it on account, and then collect cash from customers.

Instructions Prepare the end of the period closing entries for the Quick-E Delivery Service.

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

A liability is classified as a current liability if the company is to pay it within the forthcoming year.

A correcting entry

The following data (in thousands) is available for Chang Company. Total assets on the Statement of Financial Position for 2014 are:

The temporary account balances ultimately wind up in what account?

The following selected account balances appear on the December 31, 2014 statement of financial position of Chen Co. What is the total amount of property, plant, and equipment that will be reported on 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

Exam 4: Completing the Accounting Cycle

The purpose of the post-closing trial balance is to

The post-closing trial balance will contain only statement of equity accounts and statement of financial position accounts.

What is the order in which assets are generally listed on a classified statement of financial position?

Reversing entries are an optional bookkeeping procedure.

The first step in preparing a worksheet is to prepare a ______________ from the general ledger accounts.

The Dividends account is closed to the Income Summary account in order to properly determine net income (or loss) for the period.

No permanent account balances are changed in the closing process.

The income statement and statement of financial position columns of Reed Company's worksheet reflect the following totals: The net income (or loss) for the period is

Which of the following statements is false?

The income statement for the month of June, 2014 of Taylor Enterprises contains the following information: At June 1, 2014, Taylor reported Retained Earnings of ₤35,000. The company paid no dividends during June. At June 30, 2014, the company will report Retained Earnings of

The net income (or loss) for the period

The ______________ of a company is the average time that it takes to purchase inventory, selll it on account, and then collect cash from customers.

Instructions Prepare the end of the period closing entries for the Quick-E Delivery Service.

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

A liability is classified as a current liability if the company is to pay it within the forthcoming year.

A correcting entry

The following data (in thousands) is available for Chang Company. Total assets on the Statement of Financial Position for 2014 are:

The temporary account balances ultimately wind up in what account?

The following selected account balances appear on the December 31, 2014 statement of financial position of Chen Co. What is the total amount of property, plant, and equipment that will be reported on 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