Question 1

The income statement for the year 2015 of Fugazi Co. contains the following information:   The entry to close Income Summary to Retained Earnings includes

Accepted Answer

A) a debit to Revenue for $70,000. 
B) credits to Expenses totalling $77,500. 
C) a credit to Income Summary for $7,500. 
D) a credit to Retained Earnings for $7,500. 
A) a debit to Revenue for $70,000. 
B) credits to Expenses totalling $77,500. 
C) a credit to Income Summary for $7,500. 
D) a credit to Retained Earnings for $7,500.

Question 2

Which one of the following statements concerning the accounting cycle is incorrect?

Accepted Answer

A) The accounting cycle includes journalizing transactions and posting to ledger accounts. 
B) The accounting cycle includes only one optional step. 
C) The steps in the accounting cycle are performed in sequence. 
D) The steps in the accounting cycle are repeated in each accounting period. 
A) The accounting cycle includes journalizing transactions and posting to ledger accounts. 
B) The accounting cycle includes only one optional step. 
C) The steps in the accounting cycle are performed in sequence. 
D) The steps in the accounting cycle are repeated in each accounting period.

Question 3

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 4

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015:   What is the amount that would be reported for stockholders' equity at December 31, 2015?

Accepted Answer

A) $158,000 
B) $144,000 
C) $130,000 
D) $102,000 
A) $158,000 
B) $144,000 
C) $130,000 
D) $102,000

Question 5

The accounting cycle begins at the start of a new accounting period.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) sales in producing revenues. 
B) cash in producing revenues. 
C) inventory in producing revenues. 
D) accounts receivable in producing revenues. 
A) sales in producing revenues. 
B) cash in producing revenues. 
C) inventory in producing revenues. 
D) accounts receivable in producing revenues.

Question 7

Closing entries may be prepared from all of the following except

Accepted Answer

A) Adjusted balances in the ledger 
B) Income statement and balance sheet columns of the worksheet 
C) Balance sheet 
D) Income and retained earnings statements 
A) Adjusted balances in the ledger 
B) Income statement and balance sheet columns of the worksheet 
C) Balance sheet 
D) Income and retained earnings statements

Question 8

If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a

Accepted Answer

A) debit to the retained earnings account. 
B) debit to the dividends account. 
C) credit to the retained earnings account. 
D) credit to the dividends account. 
A) debit to the retained earnings account. 
B) debit to the dividends account. 
C) credit to the retained earnings account. 
D) credit to the dividends account.

Question 9

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

Accepted Answer

A) Cash 
B) Retained Earnings 
C) Dividends 
D) Accumulated Depreciation-Equipment 
A) Cash 
B) Retained Earnings 
C) Dividends 
D) Accumulated Depreciation-Equipment

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

After a worksheet has been completed, the statement columns contain all data that are required for the preparation of financial statements.

Accepted Answer

A) True 
 B)False

Question 12

Which one of the following is an optional step in the accounting cycle of a business enterprise?

Accepted Answer

A) Analyze business transactions 
B) Prepare a worksheet 
C) Prepare a trial balance 
D) Post to the ledger accounts 
A) Analyze business transactions 
B) Prepare a worksheet 
C) Prepare a trial balance 
D) Post to the ledger accounts

Question 13

Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period.

Accepted Answer

A) True 
 B)False

Question 14

Balance sheet accounts are considered to be

Accepted Answer

A) temporary stockholders' equity accounts. 
B) permanent accounts. 
C) equity accounts. 
D) nominal accounts. 
A) temporary stockholders' equity accounts. 
B) permanent accounts. 
C) equity accounts. 
D) nominal accounts.

Question 15

If a worksheet is used, financial statements can be prepared before adjusting entries are journalized.

Accepted Answer

A) True 
 B)False

Question 16

Which one of the following is usually performed only at the end of a company's annual accounting period?

Accepted Answer

A) Preparing financial statements 
B) Journalizing and posting adjusting entries 
C) Journalizing and posting closing entries 
D) Preparing an adjusted trial balance 
A) Preparing financial statements 
B) Journalizing and posting adjusting entries 
C) Journalizing and posting closing entries 
D) Preparing an adjusted trial balance

Question 17

The balance in the income summary account before it is closed will be equal to

Accepted Answer

A) the net income or loss on the income statement. 
B) the beginning balance in the retained earnings account. 
C) the ending balance in the retained earnings account. 
D) zero. 
A) the net income or loss on the income statement. 
B) the beginning balance in the retained earnings account. 
C) the ending balance in the retained earnings account. 
D) zero.

Question 18

Current assets are customarily the first items listed on a classified balance sheet.

Accepted Answer

A) True 
 B)False

Question 19

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015:   The sub-classifications for assets on the company's classified balance sheet would include all of the following except

Accepted Answer

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

Question 20

The following information is for Bright Eyes Auto Supplies:   The total dollar amount of liabilities to be classified as current liabilities is

Accepted Answer

A) $50,000. 
B) $130,000. 
C) $180,000. 
D) $330,000. 
A) $50,000. 
B) $130,000. 
C) $180,000. 
D) $330,000.

The income statement for the year 2015 of Fugazi Co. contains the following information: The entry to close Income Summary to Retained Earnings includes

Which one of the following statements concerning the accounting cycle is incorrect?

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

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: What is the amount that would be reported for stockholders' equity at December 31, 2015?

The accounting cycle begins at the start of a new accounting period.

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

Closing entries may be prepared from all of the following except

If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a

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

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

After a worksheet has been completed, the statement columns contain all data that are required for the preparation of financial statements.

Which one of the following is an optional step in the accounting cycle of a business enterprise?

Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period.

Balance sheet accounts are considered to be

If a worksheet is used, financial statements can be prepared before adjusting entries are journalized.

Which one of the following is usually performed only at the end of a company's annual accounting period?

The balance in the income summary account before it is closed will be equal to

Current assets are customarily the first items listed on a classified balance sheet.

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: The sub-classifications for assets on the company's classified balance sheet would include all of the following except

The following information is for Bright Eyes Auto Supplies: The total dollar amount of liabilities to be classified as current liabilities is

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, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

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Exam 4: Completing the Accounting Cycle

The income statement for the year 2015 of Fugazi Co. contains the following information: The entry to close Income Summary to Retained Earnings includes

Which one of the following statements concerning the accounting cycle is incorrect?

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

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: What is the amount that would be reported for stockholders' equity at December 31, 2015?

The accounting cycle begins at the start of a new accounting period.

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

Closing entries may be prepared from all of the following except

If Income Summary has a credit balance after revenues and expenses have been closed into it, the closing entry for Income Summary will include a

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

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

After a worksheet has been completed, the statement columns contain all data that are required for the preparation of financial statements.

Which one of the following is an optional step in the accounting cycle of a business enterprise?

Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period.

Balance sheet accounts are considered to be

If a worksheet is used, financial statements can be prepared before adjusting entries are journalized.

Which one of the following is usually performed only at the end of a company's annual accounting period?

The balance in the income summary account before it is closed will be equal to

Current assets are customarily the first items listed on a classified balance sheet.

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: The sub-classifications for assets on the company's classified balance sheet would include all of the following except

The following information is for Bright Eyes Auto Supplies: The total dollar amount of liabilities to be classified as current liabilities is

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, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters