Exam 4: Completing the Accounting Cycle

Closing entries may be prepared from all of the following except

A business entity has only one accounting cycle over its economic existence.

A reversing entry

The operating cycle of a company is the average time that is required to go from cash to

Cash and supplies are both classified as current assets.

The amounts appearing on an income statement should agree with the amounts appearing on the post-closing trial balance.

The income statement for the year 2015 of Fugazi Co. contains the following information: $\begin{array}{lr}\text { Revenues }&&\$70,000\\\text { Expenses: }\\\text { Salaries and Wages Expense } & \$ 45,000 \\\text { Rent Expense } & 12,000 \\\text { Advertising Expense } & 10,000 \\\text { Supplies Expense } & 6,000 \\\text { Utilities Expense } & 2,500 \\\text { Insurance Expense } & 2,000 \\\text { Total expenses }&&77,500\\\text { Net income (loss) }&&\$(7,500)\end{array}$ After all closing entries have been posted, the revenue account will have a balance of

A worksheet is a mandatory form that must be prepared along with an income statement and balance sheet.

The Income Summary account is an important account that is used

Closing entries are journalized after adjusting entries have been journalized.

The dividends account is a permanent account whose balance is carried forward to the next accounting period.

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Accounts payable \ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Equipment 210,000 Insurance expense 3,000 Note payable, due 6/30/16 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/15) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 What is the book value of the equipment at December 31, 2015?

The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information: Revenues \7 ,000 Expenses: Salaries and Wages Expense \ 3,000 Rent Expense 1,500 Advertising Expense 800 Supplies Expense 300 Insurance Expense 100 Total expenses 5,700 Net income \1 ,300 After the revenue and expense accounts have been closed, the balance in Income Summary will be

A correcting entry

The two optional steps in the accounting cycle are preparing

Equipment is classified in the balance sheet as

The post-closing trial balance will contain only retained earnings statement accounts and balance sheet accounts.

The heading for a post-closing trial balance has a date line that is similar to the one found on

Assuming that there is a net loss for the period, debits equal credits in all but which section of the worksheet?

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