Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The operating cycle of a company is determined by the number of years the company has been operating.

Accepted Answer

A) True 
 B)False

Question 3

It is not true that current assets are assets that a company expects to

Accepted Answer

A) realize in cash within one year. 
B) sell within one year. 
C) use up within one year. 
D) acquire within one year. 
A) realize in cash within one year. 
B) sell within one year. 
C) use up within one year. 
D) acquire within one year.

Question 4

Income Summary has a credit balance of $17,000 in S. Sufjan Co. after closing revenues and expenses. The entry to close Income Summary is

Accepted Answer

A) credit Income Summary $17,000, debit Retained Earnings $17,000. 
B) credit Income Summary $17,000, debit Dividends $17,000. 
C) debit Income Summary $17,000, credit Dividends $17,000. 
D) debit Income Summary $17,000, credit Retained Earnings $17,000. 
A) credit Income Summary $17,000, debit Retained Earnings $17,000. 
B) credit Income Summary $17,000, debit Dividends $17,000. 
C) debit Income Summary $17,000, credit Dividends $17,000. 
D) debit Income Summary $17,000, credit Retained Earnings $17,000.

Question 5

The first required step in the accounting cycle is

Accepted Answer

A) reversing entries. 
B) journalizing transactions in the book of original entry. 
C) analyzing transactions. 
D) posting transactions. 
A) reversing entries. 
B) journalizing transactions in the book of original entry. 
C) analyzing transactions. 
D) posting transactions.

Question 6

The following information is for Sunny Day Real Estate:   The total dollar amount of assets to be classified as current assets is

Accepted Answer

A) $105,000. 
B) $175,000. 
C) $190,000. 
D) $260,000. 
A) $105,000. 
B) $175,000. 
C) $190,000. 
D) $260,000.

Question 7

An unacceptable way to make a correcting entry is to

Accepted Answer

A) reverse the incorrect entry. 
B) erase the incorrect entry. 
C) compare the incorrect entry with the correct entry and make a correcting entry to correct the accounts. 
D) correct it immediately upon discovery. 
A) reverse the incorrect entry. 
B) erase the incorrect entry. 
C) compare the incorrect entry with the correct entry and make a correcting entry to correct the accounts. 
D) correct it immediately upon discovery.

Question 8

The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information:   After the revenue and expense accounts have been closed, the balance in Income Summary will be

Accepted Answer

A) $0. 
B) a debit balance of $1,300. 
C) a credit balance of $1,300. 
D) a credit balance of $7,000. 
A) $0. 
B) a debit balance of $1,300. 
C) a credit balance of $1,300. 
D) a credit balance of $7,000.

Question 9

A post-closing trial balance will show

Accepted Answer

A) only permanent account balances. 
B) only temporary account balances. 
C) zero balances for all accounts. 
D) the amount of net income (or loss) for the period. 
A) only permanent account balances. 
B) only temporary account balances. 
C) zero balances for all accounts. 
D) the amount of net income (or loss) for the period.

Question 10

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015:   The current assets should be listed on Postal Service's balance sheet in the following order:

Accepted Answer

A) cash, accounts receivable, prepaid insurance, equipment. 
B) cash, prepaid insurance, supplies, accounts receivable. 
C) cash, accounts receivable, prepaid insurance, supplies. 
D) equipment, supplies, prepaid insurance, accounts receivable, cash. 
A) cash, accounts receivable, prepaid insurance, equipment. 
B) cash, prepaid insurance, supplies, accounts receivable. 
C) cash, accounts receivable, prepaid insurance, supplies. 
D) equipment, supplies, prepaid insurance, accounts receivable, cash.

Question 11

If the total debits exceed total credits in the balance sheet columns of the worksheet, stockholders' equity

Accepted Answer

A) will increase because net income has occurred. 
B) will decrease because a net loss has occurred. 
C) is in error because a mistake has occurred. 
D) will not be affected. 
A) will increase because net income has occurred. 
B) will decrease because a net loss has occurred. 
C) is in error because a mistake has occurred. 
D) will not be affected.

Question 12

Merriweather Post Pavillion received a $820 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $280 and a credit to Service Revenue $280. The correcting entry is

Accepted Answer

A) debit Cash, $820; credit Accounts Receivable, $820. 
B) debit Cash, $540 and Accounts Receivable, $280; credit Service Revenue, $820. 
C) debit Cash, $540 and Service Revenue, $280; credit Accounts Receivable, $820. 
D) debit Accounts Receivable, $820; credit Cash, $540 and Service Revenue, $280. 
A) debit Cash, $820; credit Accounts Receivable, $820. 
B) debit Cash, $540 and Accounts Receivable, $280; credit Service Revenue, $820. 
C) debit Cash, $540 and Service Revenue, $280; credit Accounts Receivable, $820. 
D) debit Accounts Receivable, $820; credit Cash, $540 and Service Revenue, $280.

Question 13

Closing entries are made

Accepted Answer

A) in order to terminate the business as an operating entity. 
B) so that all assets, liabilities, and stockholders' equity accounts will have zero balances when the next accounting period starts. 
C) in order to transfer net income (or loss) and dividends to the retained earnings account. 
D) so that financial statements can be prepared. 
A) in order to terminate the business as an operating entity. 
B) so that all assets, liabilities, and stockholders' equity accounts will have zero balances when the next accounting period starts. 
C) in order to transfer net income (or loss) and dividends to the retained earnings account. 
D) so that financial statements can be prepared.

Question 14

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015:   What is the company's net income for the year ending December 31, 2015?

Accepted Answer

A) $12,000 
B) $28,000 
C) $42,000 
D) $133,000 
A) $12,000 
B) $28,000 
C) $42,000 
D) $133,000

Question 15

The following information is for Sunny Day Real Estate:   The total dollar amount of assets to be classified as investments is

Accepted Answer

A) $0. 
B) $70,000. 
C) $85,000. 
D) $155,000. 
A) $0. 
B) $70,000. 
C) $85,000. 
D) $155,000.

Question 16

Closing entries are journalized after adjusting entries have been journalized.

Accepted Answer

A) True 
 B)False

Question 17

The IASB and FASB are working on a converged statement of financial position using the headings of

Accepted Answer

A) assets, liabilities, and equity. 
B) revenues and expenses. 
C) assets, liabilities, revenues, expenses and equity. 
D) operating, investing, and financing. 
A) assets, liabilities, and equity. 
B) revenues and expenses. 
C) assets, liabilities, revenues, expenses and equity. 
D) operating, investing, and financing.

Question 18

The Income Summary account is an important account that is used

Accepted Answer

A) during interim periods. 
B) in preparing adjusting entries. 
C) annually in preparing closing entries. 
D) annually in preparing correcting entries. 
A) during interim periods. 
B) in preparing adjusting entries. 
C) annually in preparing closing entries. 
D) annually in preparing correcting entries.

Question 19

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

Accepted Answer

A) Income statement columns 
B) Adjustments columns 
C) Trial balance columns 
D) Adjusted trial balance columns 
A) Income statement columns 
B) Adjustments columns 
C) Trial balance columns 
D) Adjusted trial balance columns

Question 20

A company's liquidity is concerned with the relationship between long-term investments and long-term debt.

Accepted Answer

A) True 
 B)False

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

The operating cycle of a company is determined by the number of years the company has been operating.

It is not true that current assets are assets that a company expects to

Income Summary has a credit balance of $17,000 in S. Sufjan Co. after closing revenues and expenses. The entry to close Income Summary is

The first required step in the accounting cycle is

The following information is for Sunny Day Real Estate: The total dollar amount of assets to be classified as current assets is

An unacceptable way to make a correcting entry is to

The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information: After the revenue and expense accounts have been closed, the balance in Income Summary will be

A post-closing trial balance will show

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: The current assets should be listed on Postal Service's balance sheet in the following order:

If the total debits exceed total credits in the balance sheet columns of the worksheet, stockholders' equity

Merriweather Post Pavillion received a $820 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $280 and a credit to Service Revenue $280. The correcting entry is

Closing entries are made

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: What is the company's net income for the year ending December 31, 2015?

The following information is for Sunny Day Real Estate: The total dollar amount of assets to be classified as investments is

Closing entries are journalized after adjusting entries have been journalized.

The IASB and FASB are working on a converged statement of financial position using the headings of

The Income Summary account is an important account that is used

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

A company's liquidity is concerned with the relationship between long-term investments and long-term debt.

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

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

The operating cycle of a company is determined by the number of years the company has been operating.

It is not true that current assets are assets that a company expects to

Income Summary has a credit balance of $17,000 in S. Sufjan Co. after closing revenues and expenses. The entry to close Income Summary is

The first required step in the accounting cycle is

The following information is for Sunny Day Real Estate: The total dollar amount of assets to be classified as current assets is

An unacceptable way to make a correcting entry is to

The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information: After the revenue and expense accounts have been closed, the balance in Income Summary will be

A post-closing trial balance will show

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: The current assets should be listed on Postal Service's balance sheet in the following order:

If the total debits exceed total credits in the balance sheet columns of the worksheet, stockholders' equity

Merriweather Post Pavillion received a $820 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $280 and a credit to Service Revenue $280. The correcting entry is

Closing entries are made

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: What is the company's net income for the year ending December 31, 2015?

The following information is for Sunny Day Real Estate: The total dollar amount of assets to be classified as investments is

Closing entries are journalized after adjusting entries have been journalized.

The IASB and FASB are working on a converged statement of financial position using the headings of

The Income Summary account is an important account that is used

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

A company's liquidity is concerned with the relationship between long-term investments and long-term debt.

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