Question 1

Use the adjusted trial balance for Stockton Company below to answer the questions that follow.  
-Determine total assets.

Accepted Answer

A)  $25,130 
B)  $16,830 
C)  $22,930 
D)  $24,030 
A)  $25,130 
B)  $16,830 
C)  $22,930 
D)  $24,030

Question 2

Any twelve-month accounting period adopted by a company is known as its fiscal year.

Accepted Answer

A) True 
 B)False

Question 3

The accumulated depreciation account is closed to the income summary account.

Accepted Answer

A) True 
 B)False

Question 4

If the totals of the Income Statement debit and credit columns of a work sheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

Accepted Answer

A) True 
 B)False

Question 5

Balance sheet accounts

Accepted Answer

A)  represent amounts accumulated during a specific period of time 
B)  are called real accounts 
C)  have zero balances after the closing entries have been posted 
D)  are not affected by adjustments 
A)  represent amounts accumulated during a specific period of time 
B)  are called real accounts 
C)  have zero balances after the closing entries have been posted 
D)  are not affected by adjustments

Question 6

Accrued revenues are ordinarily listed on the balance sheet as current liabilities.

Accepted Answer

A) True 
 B)False

Question 7

Match each journal entry that follows as one of the types of journal entries a-c) below.
-​Wages Expense 870
Wages Payable 870

Accepted Answer

A) Journal entries 
B) Adjusting journal entries 
C) Closing journal entries 
A) Journal entries 
B) Adjusting journal entries 
C) Closing journal entries

Question 8

After posting the second closing entry to the income summary account, the balance will be equal to

Accepted Answer

A)  zero 
B)  stockholders' equity 
C)  revenues for the period 
D)  the net income or net loss for the period 
A)  zero 
B)  stockholders' equity 
C)  revenues for the period 
D)  the net income or net loss for the period

Question 9

A post-closing trial balance should be prepared before the financial statements are prepared.

Accepted Answer

A) True 
 B)False

Question 10

The balance sheet should be prepared

Accepted Answer

A)  before the income statement and the retained earnings statement 
B)  before the income statement and after the retained earnings statement 
C)  after the income statement and the retained earnings statement 
D)  after the income statement and before the retained earnings statement 
A)  before the income statement and the retained earnings statement 
B)  before the income statement and after the retained earnings statement 
C)  after the income statement and the retained earnings statement 
D)  after the income statement and before the retained earnings statement

Question 11

When the end-of-period spreadsheet is complete, the adjustment columns should have

Accepted Answer

A)  total credits greater than total debits if a net income was earned 
B)  total debits greater than total credits if a net loss was incurred 
C)  total debits greater than total credits if a net income was earned 
D)  total debits are equal to total credits 
A)  total credits greater than total debits if a net income was earned 
B)  total debits greater than total credits if a net loss was incurred 
C)  total debits greater than total credits if a net income was earned 
D)  total debits are equal to total credits

Question 12

Use this end-of-period spreadsheet to answer the questions that follow.  
-The journal entry to close revenues would be:

Accepted Answer

A)  debit Income Summary, $155,000; credit Fees Earned, $155,000 
B)  debit Common Stock, $155,000; credit Fees Earned, $155,000 
C)  debit Fees Earned, $155,000; credit Income Summary, $155,000 
D)  credit Fees Earned, $155,000; credit Common Stock, $155,000 
A)  debit Income Summary, $155,000; credit Fees Earned, $155,000 
B)  debit Common Stock, $155,000; credit Fees Earned, $155,000 
C)  debit Fees Earned, $155,000; credit Income Summary, $155,000 
D)  credit Fees Earned, $155,000; credit Common Stock, $155,000

Question 13

After net income is entered on the end-of-period spreadsheet, the Balance Sheet Debit and Credit columns must

Accepted Answer

A)  be the same amount as the total amount of the Income Statement Debit and Credit columns 
B)  equal each other 
C)  be the same amount as the total amount in the Adjusted Trial Balance Debit and Credit columns 
D)  not be equal to each other and need not be the same total amounts as any other pair of columns on the work sheet 
A)  be the same amount as the total amount of the Income Statement Debit and Credit columns 
B)  equal each other 
C)  be the same amount as the total amount in the Adjusted Trial Balance Debit and Credit columns 
D)  not be equal to each other and need not be the same total amounts as any other pair of columns on the work sheet

Question 14

On which financial statement will Income Summary be shown?

Accepted Answer

A)  retained earnings statement 
B)  balance sheet 
C)  income statement 
D)  no financial statement 
A)  retained earnings statement 
B)  balance sheet 
C)  income statement 
D)  no financial statement

Question 15

It is not necessary to post the closing entries to the general ledger.

Accepted Answer

A) True 
 B)False

Question 16

Once the adjusted trial balance is in balance, the flow of accounts will now go into the financial statements.

Accepted Answer

A) True 
 B)False

Question 17

Closing entries are dated in the journal as of

Accepted Answer

A)  the date they are actually journalized, although they are generally prepared after the end of the accounting period 
B)  the last day of the accounting period, although they are actually journalized after the end of the accounting period 
C)  the first day of the accounting period, although they are actually journalized well after the beginning of the accounting period 
D)  the first day of the subsequent accounting period 
A)  the date they are actually journalized, although they are generally prepared after the end of the accounting period 
B)  the last day of the accounting period, although they are actually journalized after the end of the accounting period 
C)  the first day of the accounting period, although they are actually journalized well after the beginning of the accounting period 
D)  the first day of the subsequent accounting period

Question 18

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on the end-of-period spreadsheet

Accepted Answer

A)  is the amount of net income or loss 
B)  indicates there is an error on the work sheet 
C)  is the amount of retained earnings 
D)  is the difference between revenue and expenses 
A)  is the amount of net income or loss 
B)  indicates there is an error on the work sheet 
C)  is the amount of retained earnings 
D)  is the difference between revenue and expenses

Question 19

Kirk Enterprises offers rug cleaning services to business clients. Below is the adjustments data for the year ended July 31. Using this information along with the spreadsheet below, record the adjusting entries in proper general journal form.
Adjustments:
a) The equipment is estimated to last for 5 years with no salvage value. The asset will be depreciated evenly over its useful life. Record one month's depreciation.
b) Accrued wages, $2.
c) Unused supplies on hand, $8.
d) Of the unearned revenue, 75% has been earned.
e) Unexpired insurance remaining at the end of the month, $9.

Accepted Answer

The answer of Kirk Enterprises offers rug cleaning services to...

Question 20

You have just accepted your first job out of college, which requires you to evaluate loan requests at Eastwood National Bank. The first loan request you receive is from Richard Enterprises. Richard Tracy, the CEO, is requesting $105,000 and brings you the following trial balance or statement of accounts) for the first year of operations ended December 31.
What three accounts do you think should be relabeled for greater clarity? Richard Enterprises
Statement of Accounts
December 31
$\begin{array}{|l|l|l|}
\hline \text { Cash } & \$ 2,050 & \
\hline \text { Billings Due from Others } & 15,070 & \
\hline \text { Office Supplies } & 7,470 & \
\hline \text { Trucks } & 36,370 & \
\hline \text { Equipment } & 8,090 & \
\hline \text { Amounts Owed to Others } & & \$ 2,850 \\hline \text { Investment in Business } & & 33,500 \
\hline \text { Service Revenues } & & 73,650 \
\hline \text { Wages Expense } & 30,050 & \\hline \text { Rent Expense } & 7,330 \
\hline \text { Insurance Expense } & 2,400 \
\hline \text { Utilities Expenses } & 700 \\hline \text { Miscell aneous Expenses } & 470 & \
\hline \text { Totals } & \$ 110,000 & \$ 110,000 \
\hline
\end{array}$

Accepted Answer

The following items should be

Exam 4: Completing the Accounting Cycle

Use the adjusted trial balance for Stockton Company below to answer the questions that follow. -Determine total assets.

Any twelve-month accounting period adopted by a company is known as its fiscal year.

The accumulated depreciation account is closed to the income summary account.

If the totals of the Income Statement debit and credit columns of a work sheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

Balance sheet accounts

Accrued revenues are ordinarily listed on the balance sheet as current liabilities.

Match each journal entry that follows as one of the types of journal entries a-c) below. -​Wages Expense 870 Wages Payable 870

After posting the second closing entry to the income summary account, the balance will be equal to

A post-closing trial balance should be prepared before the financial statements are prepared.

The balance sheet should be prepared

When the end-of-period spreadsheet is complete, the adjustment columns should have

Use this end-of-period spreadsheet to answer the questions that follow. -The journal entry to close revenues would be:

After net income is entered on the end-of-period spreadsheet, the Balance Sheet Debit and Credit columns must

On which financial statement will Income Summary be shown?

It is not necessary to post the closing entries to the general ledger.

Once the adjusted trial balance is in balance, the flow of accounts will now go into the financial statements.

Closing entries are dated in the journal as of

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on the end-of-period spreadsheet

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Filters

Match each journal entry that follows as one of the types of journal entries a-c) below. -Wages Expense 870 Wages Payable 870