Question 1

When accounts do not appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the Account Title column.

Accepted Answer

A) True 
 B)False

Question 2

The current ratio is more useful than working capital in making comparisons across companies.

Accepted Answer

A) True 
 B)False

Question 3

The totals of the Adjusted Trial Balance columns on a work sheet will always be the sum of the Trial Balance column totals and the Adjustments column totals.

Accepted Answer

A) True 
 B)False

Question 4

The following accounts appear in an adjusted trial balance of Blaine Auto Service Company. Indicate whether each account would be reported in the 
(a) current assets, 
(b) property, plant, and equipment, 
(c) current liabilities, 
(d) long-term liabilities, or 
(e) owner's equity section of the December 31 balance sheet of Blaine Auto Service Company.
1.Blaine Brock, Capital
2.Accumulated Depreciation
3.Unearned Revenues
4.Mortgage Payable
5.Equipment
6.Notes Payable 
(due in two years)
7.Cash
8.Accounts Receivable

Accepted Answer

1.
(e) Owner's equity
2.
(b) Property, p

Question 5

Robert Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31.​   Prepare the closing entry required to transfer the income or loss at the end of the period.

Accepted Answer

The answer of Robert Evans owns a business, Beachside Realty,...

Question 6

Net income is closed to the owner's capital account.

Accepted Answer

A) True 
 B)False

Question 7

The classified balance sheet will show which asset subsections?

Accepted Answer

A)  current assets and other equity 
B)  current assets and property, plant, and equipment 
C)  current liabilities and short-term assets 
D)  other revenues and property, plant and equipment 
A)  current assets and other equity 
B)  current assets and property, plant, and equipment 
C)  current liabilities and short-term assets 
D)  other revenues and property, plant and equipment

Question 8

Which of the following statements indicates that a company earned a net income for the period?

Accepted Answer

A)  The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the end-of-period spreadsheet. 
B)  The sum of the credits exceeds the sum of the debits in the Income Statement columns on the end-of-period spreadsheet. 
C)  The sum of the debits exceeds the sum of the credits in the Income Statement columns on the end-of-period spreadsheet. 
D)  Cash inflows exceed cash outflows. 
A)  The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the end-of-period spreadsheet. 
B)  The sum of the credits exceeds the sum of the debits in the Income Statement columns on the end-of-period spreadsheet. 
C)  The sum of the debits exceeds the sum of the credits in the Income Statement columns on the end-of-period spreadsheet. 
D)  Cash inflows exceed cash outflows.

Question 9

On the work sheet, the capital and drawing account balances are extended to the Balance Sheet columns.

Accepted Answer

A) True 
 B)False

Question 10

On the basis of the following information taken from the Adjusted Trial Balance columns of the work sheet for the month ended September 30, journalize the closing entries for Perez Roofing Company.​

Accepted Answer

The answer of On the basis of the following information...

Question 11

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the Debit and Credit columns show debits of $37,686 and credits of $41,101. This indicates that

Accepted Answer

A)  neither net income nor loss can be calculated because it is found on the income statement 
B)  the company has a net loss of $3,415 for the period 
C)  the company has a net income of $3,415 for the period 
D)  the amounts are out of balance and need to be corrected 
A)  neither net income nor loss can be calculated because it is found on the income statement 
B)  the company has a net loss of $3,415 for the period 
C)  the company has a net income of $3,415 for the period 
D)  the amounts are out of balance and need to be corrected

Question 12

Land is an example of a plant asset.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following accounts will not be closed to the capital account at the end of the year?

Accepted Answer

A)  Utilities Expense 
B)  Fees Earned 
C)  Prepaid Insurance 
D)  Insurance Expense 
A)  Utilities Expense 
B)  Fees Earned 
C)  Prepaid Insurance 
D)  Insurance Expense

Question 14

When preparing the statement of owner's equity, the beginning capital balance can always be found

Accepted Answer

A)  in the Income Statement columns of the work sheet 
B)  in the statement of cash flows 
C)  in the general ledger 
D)  in the Balance Sheet columns of the work sheet 
A)  in the Income Statement columns of the work sheet 
B)  in the statement of cash flows 
C)  in the general ledger 
D)  in the Balance Sheet columns of the work sheet

Question 15

Accrued taxes payable are generally reported on the balance sheet as a current liability.

Accepted Answer

A) True 
 B)False

Question 16

Current assets and current liabilities for Brayden Company are as follows:​​   What is the current ratio for 20Y9 and 20Y8?​

Accepted Answer

A)  0.94 and 0.89 
B)  1.07 and 1.12 
C)  0.54 and 0.57 
D)  1.85 and 1.77 
A)  0.94 and 0.89 
B)  1.07 and 1.12 
C)  0.54 and 0.57 
D)  1.85 and 1.77

Question 17

On September 1, the company pays rent for 12 months in advance and debits an asset account. At year-end, the adjusting entry on the work sheet would

Accepted Answer

A)  increase an expense account 
B)  decrease a liability account 
C)  increase an asset account 
D)  decrease an expense account 
A)  increase an expense account 
B)  decrease a liability account 
C)  increase an asset account 
D)  decrease an expense account

Question 18

After net income or loss is entered on the work sheet, the Debit column total must equal the Credit column total for the Balance Sheet pair of columns.

Accepted Answer

A) True 
 B)False

Question 19

It is not necessary to post the closing entries to the general ledger.

Accepted Answer

A) True 
 B)False

Question 20

Prepaid Insurance is an example of a current asset.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

When accounts do not appear on the unadjusted trial balance but are needed to post adjustments, they are simply added to the Account Title column.

The current ratio is more useful than working capital in making comparisons across companies.

The totals of the Adjusted Trial Balance columns on a work sheet will always be the sum of the Trial Balance column totals and the Adjustments column totals.

Robert Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31.​ Prepare the closing entry required to transfer the income or loss at the end of the period.

Net income is closed to the owner's capital account.

The classified balance sheet will show which asset subsections?

Which of the following statements indicates that a company earned a net income for the period?

On the work sheet, the capital and drawing account balances are extended to the Balance Sheet columns.

On the basis of the following information taken from the Adjusted Trial Balance columns of the work sheet for the month ended September 30, journalize the closing entries for Perez Roofing Company.​

After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the Debit and Credit columns show debits of $37,686 and credits of $41,101. This indicates that

Land is an example of a plant asset.

Which of the following accounts will not be closed to the capital account at the end of the year?

When preparing the statement of owner's equity, the beginning capital balance can always be found

Accrued taxes payable are generally reported on the balance sheet as a current liability.

Current assets and current liabilities for Brayden Company are as follows:​​ What is the current ratio for 20Y9 and 20Y8?​

On September 1, the company pays rent for 12 months in advance and debits an asset account. At year-end, the adjusting entry on the work sheet would

After net income or loss is entered on the work sheet, the Debit column total must equal the Credit column total for the Balance Sheet pair of columns.

It is not necessary to post the closing entries to the general ledger.

Prepaid Insurance is an example of a current asset.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters

Robert Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31. Prepare the closing entry required to transfer the income or loss at the end of the period.

On the basis of the following information taken from the Adjusted Trial Balance columns of the work sheet for the month ended September 30, journalize the closing entries for Perez Roofing Company.

Current assets and current liabilities for Brayden Company are as follows: What is the current ratio for 20Y9 and 20Y8?