Exam 4: Completing the Accounting Cycle

Closing entries are journalized and posted

In one closing entry, Dividends is credited and Income Summary is debited.

Closing entries

Under IFRS and under GAAP, current assets are listed in IFRS GAAP a. order of liquidity order of liquidity b. reverse order of liquidity order of liquidity. c. order of liquidity reverse order of liquidity d. reverse order of liquidity reverse order of liquidity IFRS.

The adjusted trial balance columns of a worksheet are obtained by subtracting the adjustment columns from the trial balance columns.

Which of the following steps in the accounting cycle may be performed most frequently?

In order to close the dividends account, the

These are selected account balances on December 31, 2015. Land (location of the office building) \ 100,000 Land (held for future use) 150,000 Office Building 700,000 Inventory 200,000 Equipment 450,000 Office Furniture 150,000 Accumulated Depreciation 425,000 What is the total net amount of property, plant, and equipment that will appear on the balance sheet?

Both IFRS and GAAP require disclosure about

If the total debit column exceeds the total credit column of the income statement columns on a worksheet, then the company has

An unacceptable way to make a correcting entry is to

In preparing closing entries

Current assets are listed in the order of liquidity.

Current liabilities

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

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

Which account listed below would be double ruled in the ledger as part of the closing process?

The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals \7 2,000 \4 8,000 \6 0,000 \8 4,000 To enter the net income (or loss) for the period into the above worksheet requires an entry to the

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 The entry to close Income Summary to Retained Earnings includes

The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals \7 2,000 \4 4,000 \6 0,000 \8 8,000 The net income (or loss) for the period is a. $\$ 44,000$ income. b. $\$ 28,000$ income. c. $\$ 28,000$ loss. d. not determinable.