Question 1

The worksheet does not show

Accepted Answer

A) net income or loss for the period. 
B) revenue and expense account balances. 
C) the ending balance in the retained earnings account. 
D) the trial balance before adjustments. 
A) net income or loss for the period. 
B) revenue and expense account balances. 
C) the ending balance in the retained earnings account. 
D) the trial balance before adjustments.

Question 2

Intangible assets include each of the following except

Accepted Answer

A) copyrights. 
B) goodwill. 
C) land improvements. 
D) patents. 
A) copyrights. 
B) goodwill. 
C) land improvements. 
D) patents.

Question 3

Which of the following companies would be least likely to use a worksheet to facilitate the adjustment process?

Accepted Answer

A) Large company with numerous accounts 
B) Small company with numerous accounts 
C) All companies, since worksheets are required under generally accepted accounting principles 
D) Small company with few accounts 
A) Large company with numerous accounts 
B) Small company with numerous accounts 
C) All companies, since worksheets are required under generally accepted accounting principles 
D) Small company with few accounts

Question 4

The adjustments on a worksheet can be posted directly to the accounts in the ledger from the worksheet.

Accepted Answer

A) True 
 B)False

Question 5

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015:   What are total current liabilities at December 31, 2015?

Accepted Answer

A) $18,000 
B) $70,000 
C) $88,000 
D) $120,000 
A) $18,000 
B) $70,000 
C) $88,000 
D) $120,000

Question 6

Current liabilities

Accepted Answer

A) are obligations that the company is to pay within the forthcoming year. 
B) are listed in the balance sheet in order of their expected maturity. 
C) are listed in the balance sheet, starting with accounts payable. 
D) should not include long-term debt that is expected to be paid within the next year. 
A) are obligations that the company is to pay within the forthcoming year. 
B) are listed in the balance sheet in order of their expected maturity. 
C) are listed in the balance sheet, starting with accounts payable. 
D) should not include long-term debt that is expected to be paid within the next year.

Question 7

It is not necessary to prepare formal financial statements if a worksheet has been prepared because financial position and net income are shown on the worksheet.

Accepted Answer

A) True 
 B)False

Question 8

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

Accepted Answer

A) analyzing transactions. 
B) journalizing and posting adjusting entries. 
C) preparing a post-closing trial balance. 
D) posting to ledger accounts. 
A) analyzing transactions. 
B) journalizing and posting adjusting entries. 
C) preparing a post-closing trial balance. 
D) posting to ledger accounts.

Question 9

The adjustments entered in the adjustments columns of a worksheet are

Accepted Answer

A) not journalized. 
B) posted to the ledger but not journalized. 
C) not journalized until after the financial statements are prepared. 
D) journalized before the worksheet is completed. 
A) not journalized. 
B) posted to the ledger but not journalized. 
C) not journalized until after the financial statements are prepared. 
D) journalized before the worksheet is completed.

Question 10

The final step in the accounting cycle is to prepare

Accepted Answer

A) closing entries. 
B) financial statements. 
C) a post-closing trial balance. 
D) adjusting entries. 
A) closing entries. 
B) financial statements. 
C) a post-closing trial balance. 
D) adjusting entries.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The following selected account balances appear on the December 31, 2015 balance sheet of Superchunk Co.   What is the total amount of property, plant, and equipment that will be reported on the balance sheet?

Accepted Answer

A) $1,210,000 
B) $1,435,000 
C) $1,510,000 
D) $1,850,000 
A) $1,210,000 
B) $1,435,000 
C) $1,510,000 
D) $1,850,000

Question 13

In preparing closing entries

Accepted Answer

A) each revenue account will be credited. 
B) each expense account will be credited. 
C) the retained earnings account will be debited if there is net income for the period. 
D) the dividends account will be debited. 
A) each revenue account will be credited. 
B) each expense account will be credited. 
C) the retained earnings account will be debited if there is net income for the period. 
D) the dividends account will be debited.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

Accepted Answer

A) True 
 B)False

Question 16

If errors occur in the recording process, they

Accepted Answer

A) should be corrected as adjustments at the end of the period. 
B) should be corrected as soon as they are discovered. 
C) should be corrected when preparing closing entries. 
D) cannot be corrected until the next accounting period. 
A) should be corrected as adjustments at the end of the period. 
B) should be corrected as soon as they are discovered. 
C) should be corrected when preparing closing entries. 
D) cannot be corrected until the next accounting period.

Question 17

On a classified balance sheet, current assets are customarily listed

Accepted Answer

A) in alphabetical order. 
B) with the largest dollar amounts first. 
C) in the order of liquidity. 
D) in the order of acquisition. 
A) in alphabetical order. 
B) with the largest dollar amounts first. 
C) in the order of liquidity. 
D) in the order of acquisition.

Question 18

The net income (or loss) for the period

Accepted Answer

A) is found by computing the difference between the income statement credit column and the balance sheet credit column on the worksheet. 
B) cannot be found on the worksheet. 
C) is found by computing the difference between the income statement columns of the worksheet. 
D) is found by computing the difference between the trial balance totals and the adjusted trial balance totals. 
A) is found by computing the difference between the income statement credit column and the balance sheet credit column on the worksheet. 
B) cannot be found on the worksheet. 
C) is found by computing the difference between the income statement columns of the worksheet. 
D) is found by computing the difference between the trial balance totals and the adjusted trial balance totals.

Question 19

The income statement for the year 2015 of Fugazi Co. contains the following information:   After all closing entries have been posted, the Income Summary account will have a balance of

Accepted Answer

A) $0. 
B) $7,500 debit. 
C) $7,500 credit. 
D) $77,500 credit. 
A) $0. 
B) $7,500 debit. 
C) $7,500 credit. 
D) $77,500 credit.

Question 20

Both IFRS and GAAP require disclosure about

Accepted Answer

A) accounting policies followed. 
B) judgements that management has made in the process of applying the entity's accounting policies. 
C) the key assumptions and estimation uncertainty. 
D) All of these answer choices are correct. 
A) accounting policies followed. 
B) judgements that management has made in the process of applying the entity's accounting policies. 
C) the key assumptions and estimation uncertainty. 
D) All of these answer choices are correct.

The worksheet does not show

Intangible assets include each of the following except

Which of the following companies would be least likely to use a worksheet to facilitate the adjustment process?

The adjustments on a worksheet can be posted directly to the accounts in the ledger from the worksheet.

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: What are total current liabilities at December 31, 2015?

Current liabilities

It is not necessary to prepare formal financial statements if a worksheet has been prepared because financial position and net income are shown on the worksheet.

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

The adjustments entered in the adjustments columns of a worksheet are

The final step in the accounting cycle is to prepare

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

The following selected account balances appear on the December 31, 2015 balance sheet of Superchunk Co. What is the total amount of property, plant, and equipment that will be reported on the balance sheet?

In preparing closing entries

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

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

If errors occur in the recording process, they

On a classified balance sheet, current assets are customarily listed

The net income (or loss) for the period

The income statement for the year 2015 of Fugazi Co. contains the following information: After all closing entries have been posted, the Income Summary account will have a balance of

Both IFRS and GAAP require disclosure about

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 worksheet does not show

Intangible assets include each of the following except

Which of the following companies would be least likely to use a worksheet to facilitate the adjustment process?

The adjustments on a worksheet can be posted directly to the accounts in the ledger from the worksheet.

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: What are total current liabilities at December 31, 2015?

Current liabilities

It is not necessary to prepare formal financial statements if a worksheet has been prepared because financial position and net income are shown on the worksheet.

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

The adjustments entered in the adjustments columns of a worksheet are

The final step in the accounting cycle is to prepare

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

The following selected account balances appear on the December 31, 2015 balance sheet of Superchunk Co. What is the total amount of property, plant, and equipment that will be reported on the balance sheet?

In preparing closing entries

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

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

If errors occur in the recording process, they

On a classified balance sheet, current assets are customarily listed

The net income (or loss) for the period

The income statement for the year 2015 of Fugazi Co. contains the following information: After all closing entries have been posted, the Income Summary account will have a balance of

Both IFRS and GAAP require disclosure about

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