Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Closing entries are

Accepted Answer

A) an optional step in the accounting cycle. 
B) posted to the ledger accounts from the worksheet. 
C) made to close permanent or real accounts. 
D) journalized in the general journal. 
A) an optional step in the accounting cycle. 
B) posted to the ledger accounts from the worksheet. 
C) made to close permanent or real accounts. 
D) journalized in the general journal.

Question 3

The two optional steps in the accounting cycle are preparing

Accepted Answer

A) a post-closing trial balance and reversing entries. 
B) a worksheet and post-closing trial balances. 
C) reversing entries and a worksheet. 
D) an adjusted trial balance and a post-closing trial balance. 
A) a post-closing trial balance and reversing entries. 
B) a worksheet and post-closing trial balances. 
C) reversing entries and a worksheet. 
D) an adjusted trial balance and a post-closing trial balance.

Question 4

The account, Supplies, will appear in the following debit columns of the worksheet.

Accepted Answer

A) Trial balance 
B) Adjusted trial balance 
C) Balance sheet 
D) All of these answer choices are correct 
A) Trial balance 
B) Adjusted trial balance 
C) Balance sheet 
D) All of these answer choices are correct

Question 5

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015:   What is the book value of the equipment at December 31, 2015?

Accepted Answer

A) $170,000 
B) $182,000 
C) $210,000 
D) $238,000 
A) $170,000 
B) $182,000 
C) $210,000 
D) $238,000

Question 6

Which of the following would not be classified a long-term liability?

Accepted Answer

A) Current maturities of long-term debt 
B) Bonds payable 
C) Mortgage payable 
D) Lease liabilities 
A) Current maturities of long-term debt 
B) Bonds payable 
C) Mortgage payable 
D) Lease liabilities

Question 7

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

Accepted Answer

A) $0. 
B) $140,000. 
C) $180,000. 
D) $250,000. 
A) $0. 
B) $140,000. 
C) $180,000. 
D) $250,000.

Question 8

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

Accepted Answer

A) earned net income for the period. 
B) an error because debits do not equal credits. 
C) suffered a net loss for the period. 
D) to make an adjusting entry. 
A) earned net income for the period. 
B) an error because debits do not equal credits. 
C) suffered a net loss for the period. 
D) to make an adjusting entry.

Question 9

The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals:   To enter the net income (or loss) for the period into the above worksheet requires an entry to the

Accepted Answer

A) income statement debit column and the balance sheet credit column. 
B) income statement credit column and the balance sheet debit column. 
C) income statement debit column and the income statement credit column. 
D) balance sheet debit column and the balance sheet credit column. 
A) income statement debit column and the balance sheet credit column. 
B) income statement credit column and the balance sheet debit column. 
C) income statement debit column and the income statement credit column. 
D) balance sheet debit column and the balance sheet credit column.

Question 10

Which of the following steps in the accounting cycle would not generally be performed daily?

Accepted Answer

A) Journalize transactions 
B) Post to ledger accounts 
C) Prepare adjusting entries 
D) Analyze business transactions 
A) Journalize transactions 
B) Post to ledger accounts 
C) Prepare adjusting entries 
D) Analyze business transactions

Question 11

The relationship between current assets and current liabilities is important in evaluating a company's

Accepted Answer

A) profitability. 
B) liquidity. 
C) market value. 
D) accounting cycle. 
A) profitability. 
B) liquidity. 
C) market value. 
D) accounting cycle.

Question 12

All of the following are property, plant, and equipment except

Accepted Answer

A) supplies. 
B) machinery. 
C) land. 
D) buildings. 
A) supplies. 
B) machinery. 
C) land. 
D) buildings.

Question 13

The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information:   The entry to close the revenue account includes a

Accepted Answer

A) debit to Income Summary for $1,300. 
B) credit to Income Summary for $1,300. 
C) debit to Income Summary for $7,000. 
D) credit to Income Summary for $7,000. 
A) debit to Income Summary for $1,300. 
B) credit to Income Summary for $1,300. 
C) debit to Income Summary for $7,000. 
D) credit to Income Summary for $7,000.

Question 14

Liabilities are generally classified on a balance sheet as

Accepted Answer

A) small liabilities and large liabilities. 
B) present liabilities and future liabilities. 
C) tangible liabilities and intangible liabilities. 
D) current liabilities and long-term liabilities. 
A) small liabilities and large liabilities. 
B) present liabilities and future liabilities. 
C) tangible liabilities and intangible liabilities. 
D) current liabilities and long-term liabilities.

Question 15

The most important information needed to determine if companies can pay their current obligations is the

Accepted Answer

A) net income for this year. 
B) projected net income for next year. 
C) relationship between current assets and current liabilities. 
D) relationship between short-term and long-term liabilities. 
A) net income for this year. 
B) projected net income for next year. 
C) relationship between current assets and current liabilities. 
D) relationship between short-term and long-term liabilities.

Question 16

When constructing a worksheet, accounts are often needed that are not listed in the trial balance already entered on the worksheet from the ledger. Where should these additional accounts be shown on the worksheet?

Accepted Answer

A) They should be inserted in alphabetical order into the trial balance accounts already given. 
B) They should be inserted in chart of account order into the trial balance already given. 
C) They should be inserted on the lines immediately below the trial balance totals. 
D) They should not be inserted on the trial balance until the next accounting period. 
A) They should be inserted in alphabetical order into the trial balance accounts already given. 
B) They should be inserted in chart of account order into the trial balance already given. 
C) They should be inserted on the lines immediately below the trial balance totals. 
D) They should not be inserted on the trial balance until the next accounting period.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Which of the following depicts the proper sequence of steps in the accounting cycle?

Accepted Answer

A) Journalize the transactions, analyze business transactions, prepare a trial balance 
B) Prepare a trial balance, prepare financial statements, prepare adjusting entries 
C) Prepare a trial balance, prepare adjusting entries, prepare financial statements 
D) Prepare a trial balance, post to ledger accounts, post adjusting entries 
A) Journalize the transactions, analyze business transactions, prepare a trial balance 
B) Prepare a trial balance, prepare financial statements, prepare adjusting entries 
C) Prepare a trial balance, prepare adjusting entries, prepare financial statements 
D) Prepare a trial balance, post to ledger accounts, post adjusting entries

Question 19

Under IFRS

Accepted Answer

A) companies can apply fair value to property, plant, and equipment and natural resources. 
B) companies can apply fair value to property, plant, and equipment but not to natural resources. 
C) companies can apply fair value to neither property, plant, and equipment nor natural resources. 
D) companies can apply fair value to natural resources but not to property, plant, and equipment. 
A) companies can apply fair value to property, plant, and equipment and natural resources. 
B) companies can apply fair value to property, plant, and equipment but not to natural resources. 
C) companies can apply fair value to neither property, plant, and equipment nor natural resources. 
D) companies can apply fair value to natural resources but not to property, plant, and equipment.

Question 20

An error has occurred in the closing entry process if

Accepted Answer

A) revenue and expense accounts have zero balances. 
B) the retained earnings account is credited for the amount of net income. 
C) the dividends account is closed to the retained earnings account. 
D) the balance sheet accounts have zero balances. 
A) revenue and expense accounts have zero balances. 
B) the retained earnings account is credited for the amount of net income. 
C) the dividends account is closed to the retained earnings account. 
D) the balance sheet accounts have zero balances.

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

Closing entries are

The two optional steps in the accounting cycle are preparing

The account, Supplies, will appear in the following debit columns of the worksheet.

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: What is the book value of the equipment at December 31, 2015?

Which of the following would not be classified a long-term liability?

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

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

The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals: To enter the net income (or loss) for the period into the above worksheet requires an entry to the

Which of the following steps in the accounting cycle would not generally be performed daily?

The relationship between current assets and current liabilities is important in evaluating a company's

All of the following are property, plant, and equipment except

The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information: The entry to close the revenue account includes a

Liabilities are generally classified on a balance sheet as

The most important information needed to determine if companies can pay their current obligations is the

When constructing a worksheet, accounts are often needed that are not listed in the trial balance already entered on the worksheet from the ledger. Where should these additional accounts be shown on the worksheet?

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

Which of the following depicts the proper sequence of steps in the accounting cycle?

Under IFRS

An error has occurred in the closing entry process if

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

Exam 4: Completing the Accounting Cycle

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

Closing entries are

The two optional steps in the accounting cycle are preparing

The account, Supplies, will appear in the following debit columns of the worksheet.

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: What is the book value of the equipment at December 31, 2015?

Which of the following would not be classified a long-term liability?

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

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

The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals: To enter the net income (or loss) for the period into the above worksheet requires an entry to the

Which of the following steps in the accounting cycle would not generally be performed daily?

The relationship between current assets and current liabilities is important in evaluating a company's

All of the following are property, plant, and equipment except

The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information: The entry to close the revenue account includes a

Liabilities are generally classified on a balance sheet as

The most important information needed to determine if companies can pay their current obligations is the

When constructing a worksheet, accounts are often needed that are not listed in the trial balance already entered on the worksheet from the ledger. Where should these additional accounts be shown on the worksheet?

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

Which of the following depicts the proper sequence of steps in the accounting cycle?

Under IFRS

An error has occurred in the closing entry process if

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