Question 1

Closing entries are made in the

Accepted Answer

A)  sales journal. 
B)  purchases journal. 
C)  general journal. 
D)  cash receipts journal. 
A)  sales journal. 
B)  purchases journal. 
C)  general journal. 
D)  cash receipts journal.

Question 2

Match the terms with the definitions.
-An account that is used to reflect an obligation that is secured by a mortgage on certain property.

Accepted Answer

A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities 
A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities

Question 3

All adjusting entries should be reversed.

Accepted Answer

A) True 
 B)False

Question 4

A formal statement of the changes in owner's equity during an accounting period is called a statement of financial position.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following accounts is used only at the close of the accounting period to adjust the merchandise inventory account and summarize the temporary owner's equity accounts?

Accepted Answer

A)  Owner's Capital 
B)  Income Summary 
C)  Cost of Goods Sold 
D)  Sales 
A)  Owner's Capital 
B)  Income Summary 
C)  Cost of Goods Sold 
D)  Sales

Question 6

The third step in the closing process is to transfer the balance in which of the following accounts to the permanent owner's equity account?

Accepted Answer

A)  Revenue 
B)  Expense 
C)  Income Summary 
D)  Owner's Capital 
A)  Revenue 
B)  Expense 
C)  Income Summary 
D)  Owner's Capital

Question 7

The multiple-step form of income statement shows operating income separate from other revenue and other expenses.

Accepted Answer

A) True 
 B)False

Question 8

The number of times the accounts receivable turned over or were collected during the accounting period is called net credit sales for the period.

Accepted Answer

A) True 
 B)False

Question 9

Match the terms with the definitions.
-A written agreement specifying that if the borrower does not repay a debt, the lender has the right to take over specific property to satisfy the debt.

Accepted Answer

A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities 
A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities

Question 10

Match the terms with the definitions.
-Current assets divided by current liabilities.

Accepted Answer

A) selling expenses 
B) quick assets 
C) average days to sell inventory 
D) book value 
E) property, plant, and equipment
F)operating cycle
G)current ratio
H)general expenses
I)gross profit
J)net sales
K)multiple-step income statement
L)inventory turnover
M)liquidity 
A) selling expenses 
B) quick assets 
C) average days to sell inventory 
D) book value 
E) property, plant, and equipment
F)operating cycle
G)current ratio
H)general expenses
I)gross profit
J)net sales
K)multiple-step income statement
L)inventory turnover
M)liquidity

Question 11

The ability of a business to meet its current obligations may be evaluated with the return on owner's equity ratio.

Accepted Answer

A) True 
 B)False

Question 12

Those obligations that are due within one year or the normal operating cycle of the business and will be paid with money provided by the current assets are called

Accepted Answer

A)  investments. 
B)  marketable securities. 
C)  current liabilities. 
D)  long-term liabilities. 
A)  investments. 
B)  marketable securities. 
C)  current liabilities. 
D)  long-term liabilities.

Question 13

Match the terms with the definitions.
-Quick assets divided by current liabilities.

Accepted Answer

A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities 
A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities

Question 14

Quick assets include cash and other current assets that can be converted into cash quickly.

Accepted Answer

A) True 
 B)False

Question 15

Net sales plus cost of goods sold is called gross profit.

Accepted Answer

A) True 
 B)False

Question 16

Gross profit less operating expenses produces the income from operations.

Accepted Answer

A) True 
 B)False

Question 17

Match the terms with the definitions.
-Net sales minus cost of goods sold.

Accepted Answer

A) selling expenses 
B) quick assets 
C) average days to sell inventory 
D) book value 
E) property, plant, and equipment
F)operating cycle
G)current ratio
H)general expenses
I)gross profit
J)net sales
K)multiple-step income statement
L)inventory turnover
M)liquidity 
A) selling expenses 
B) quick assets 
C) average days to sell inventory 
D) book value 
E) property, plant, and equipment
F)operating cycle
G)current ratio
H)general expenses
I)gross profit
J)net sales
K)multiple-step income statement
L)inventory turnover
M)liquidity

Question 18

Reversing entries are made in the

Accepted Answer

A)  general journal. 
B)  sales journal. 
C)  purchases journal. 
D)  cash receipts journal. 
A)  general journal. 
B)  sales journal. 
C)  purchases journal. 
D)  cash receipts journal.

Question 19

Match the terms with the definitions.
-A trial balance taken after the temporary owner's equity accounts have been closed.

Accepted Answer

A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities 
A) accounts receivable turnover 
B) average collection period 
C) reversing entry 
D) return on owner's equity 
E) current assets
F)current liabilities
G)quick ratio
H)post-closing trial balance
I)Mortgage Payable
J)income from operations
K)interstatement analysis
L)mortgage
M)long-term liabilities

Question 20

The statement of owner's equity summarizes all changes in the owner's equity during the period.

Accepted Answer

A) True 
 B)False

Closing entries are made in the

Match the terms with the definitions. -An account that is used to reflect an obligation that is secured by a mortgage on certain property.

All adjusting entries should be reversed.

A formal statement of the changes in owner's equity during an accounting period is called a statement of financial position.

Which of the following accounts is used only at the close of the accounting period to adjust the merchandise inventory account and summarize the temporary owner's equity accounts?

The third step in the closing process is to transfer the balance in which of the following accounts to the permanent owner's equity account?

The multiple-step form of income statement shows operating income separate from other revenue and other expenses.

The number of times the accounts receivable turned over or were collected during the accounting period is called net credit sales for the period.

Match the terms with the definitions. -A written agreement specifying that if the borrower does not repay a debt, the lender has the right to take over specific property to satisfy the debt.

Match the terms with the definitions. -Current assets divided by current liabilities.

The ability of a business to meet its current obligations may be evaluated with the return on owner's equity ratio.

Those obligations that are due within one year or the normal operating cycle of the business and will be paid with money provided by the current assets are called

Match the terms with the definitions. -Quick assets divided by current liabilities.

Quick assets include cash and other current assets that can be converted into cash quickly.

Net sales plus cost of goods sold is called gross profit.

Gross profit less operating expenses produces the income from operations.

Match the terms with the definitions. -Net sales minus cost of goods sold.

Reversing entries are made in the

Match the terms with the definitions. -A trial balance taken after the temporary owner's equity accounts have been closed.

The statement of owner's equity summarizes all changes in the owner's equity during the period.

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Accounting for a Professional Service Business: The Combination Journal

Filters

Exam 15: Financial Statements and Year-End Accounting for a Merchandising Business

Closing entries are made in the

Match the terms with the definitions. -An account that is used to reflect an obligation that is secured by a mortgage on certain property.

All adjusting entries should be reversed.

A formal statement of the changes in owner's equity during an accounting period is called a statement of financial position.

Which of the following accounts is used only at the close of the accounting period to adjust the merchandise inventory account and summarize the temporary owner's equity accounts?

The third step in the closing process is to transfer the balance in which of the following accounts to the permanent owner's equity account?

The multiple-step form of income statement shows operating income separate from other revenue and other expenses.

The number of times the accounts receivable turned over or were collected during the accounting period is called net credit sales for the period.

Match the terms with the definitions. -A written agreement specifying that if the borrower does not repay a debt, the lender has the right to take over specific property to satisfy the debt.

Match the terms with the definitions. -Current assets divided by current liabilities.

The ability of a business to meet its current obligations may be evaluated with the return on owner's equity ratio.

Those obligations that are due within one year or the normal operating cycle of the business and will be paid with money provided by the current assets are called

Match the terms with the definitions. -Quick assets divided by current liabilities.

Quick assets include cash and other current assets that can be converted into cash quickly.

Net sales plus cost of goods sold is called gross profit.

Gross profit less operating expenses produces the income from operations.

Match the terms with the definitions. -Net sales minus cost of goods sold.

Reversing entries are made in the

Match the terms with the definitions. -A trial balance taken after the temporary owner's equity accounts have been closed.

The statement of owner's equity summarizes all changes in the owner's equity during the period.

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Accounting for a Professional Service Business: The Combination Journal

Filters