Question 1

Reversing entries are recorded after adjusting entries have been recorded and before closing entries are recorded for the same period.

Accepted Answer

A) True 
 B)False

Question 2

The income statement will present

Accepted Answer

A)  revenues less expenses (ordered largest to smallest amounts) with miscellaneous expense listed last 
B)  revenues less expenses (ordered smallest to largest amounts) with miscellaneous expense listed last 
C)  revenues less expenses (ordered in alphabetical order) 
D)  revenues less expenses (order is not important) 
A)  revenues less expenses (ordered largest to smallest amounts) with miscellaneous expense listed last 
B)  revenues less expenses (ordered smallest to largest amounts) with miscellaneous expense listed last 
C)  revenues less expenses (ordered in alphabetical order) 
D)  revenues less expenses (order is not important)

Question 3

The post-closing trial balance will generally have fewer accounts than the trial balance.

Accepted Answer

A) True 
 B)False

Question 4

When the end-of-period spreadsheet is complete, the Adjustments columns should have

Accepted Answer

A)  total credits greater than total debits if a net income was earned 
B)  total debits greater than total credits if a net loss was incurred 
C)  total debits greater than total credits if a net income was earned 
D)  total debits equal to total credits 
A)  total credits greater than total debits if a net income was earned 
B)  total debits greater than total credits if a net loss was incurred 
C)  total debits greater than total credits if a net income was earned 
D)  total debits equal to total credits

Question 5

Current assets and current liabilities for Brayden Company are as follows:​​   What conclusions can be drawn regarding Brayden's ability to meet its financial obligations?​

Accepted Answer

A)  The current ratio has worsened, and the working capital has decreased. 
B)  The current ratio has improved, and the working capital has increased. 
C)  The current ratio has improved, while the working capital has decreased. 
D)  The current ratio has worsened, but the working capital has increased. 
A)  The current ratio has worsened, and the working capital has decreased. 
B)  The current ratio has improved, and the working capital has increased. 
C)  The current ratio has improved, while the working capital has decreased. 
D)  The current ratio has worsened, but the working capital has increased.

Question 6

The post-closing trial balance differs from the adjusted trial balance in that it does not

Accepted Answer

A)  take into account closing entries 
B)  take into account adjusting entries 
C)  include balance sheet accounts 
D)  include income statement accounts 
A)  take into account closing entries 
B)  take into account adjusting entries 
C)  include balance sheet accounts 
D)  include income statement accounts

Question 7

There is really no benefit in preparing financial statements in any particular order.

Accepted Answer

A) True 
 B)False

Question 8

If the totals of the Income Statement Debit and Credit columns of a work sheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

Accepted Answer

A) True 
 B)False

Question 9

Reconstruct adjusting and closing entries for the month ended September 30 from the T accounts below.​​​   ​   ​

Accepted Answer

Adjusting

Question 10

The majority of businesses end their fiscal year on December 31.

Accepted Answer

A) True 
 B)False

Question 11

You have just accepted your first job out of college, which requires you to evaluate loan requests at Eastwood National Bank. The first loan request you receive is from Richard Enterprises, a small proprietorship. Richard Tracy, the owner, is requesting $105,000 and brings you the following trial balance 
(or statement of accounts) for his first year of operations ended December 31.Which of the following accounts do you think might need to be adjusted before an accurate set of financial statements could be prepared?

Accepted Answer

The following adjustments might be neces

Question 12

Austin Enterprises was started by Daniel Austin. During the current year, Daniel Austin invested $8,000 in the business. Based on the following end-of-period spreadsheet, prepare an income statement, statement of owner's equity, and balance sheet for Austin Enterprises for the year ended December 31.​​

Accepted Answer

The answer of Austin Enterprises was started by Daniel Austin....

Question 13

Daniel's end-of-period spreadsheet at the end of July has $4,950 in the Balance Sheet Credit column for Accumulated Depreciation. The end-of-period spreadsheet at the end of August has $7,600 in the Balance Sheet Credit column for Accumulated Depreciation. What is the amount of the depreciation expense adjustment for the month of August?

Accepted Answer

A)  $12,550 
B)  $7,600 
C)  $4,950 
D)  $2,650 
A)  $12,550 
B)  $7,600 
C)  $4,950 
D)  $2,650

Question 14

The following is the adjusted trial balance for Miller Company.​   Prepare closing entries and the post-closing trial balance.

Accepted Answer

The answer of The following is the adjusted trial balance...

Question 15

The trial balance may be listed on the work sheet instead of being prepared separately.

Accepted Answer

A) True 
 B)False

Question 16

Kirk Enterprises offers rug cleaning services to business clients. Below are the adjustments data for the year ended July 31. Using this information along with the spreadsheet below, record the adjusting entries in proper general journal form.Adjustments:
(a) The equipment is estimated to last for five years with no salvage value. The asset will be depreciated evenly over its useful life. Record one month's depreciation.
(b) Accrued wages, $2.
(c) Unused supplies on hand, $8.
(d) Of the unearned revenue, 75% has been earned.
(e) Unexpired insurance remaining at the end of the month, $9.​

Accepted Answer

The answer of Kirk Enterprises offers rug cleaning services to...

Question 17

Entries required to close the balances of the temporary accounts at the end of the period are called final entries.

Accepted Answer

A) True 
 B)False

Question 18

The ability to convert assets into cash is called liquidity.

Accepted Answer

A) True 
 B)False

Question 19

Closing entries are entered directly on to the work sheet.

Accepted Answer

A) True 
 B)False

Question 20

Working capital is the excess of the current liabilities of a business over its current assets.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

Reversing entries are recorded after adjusting entries have been recorded and before closing entries are recorded for the same period.

The income statement will present

The post-closing trial balance will generally have fewer accounts than the trial balance.

When the end-of-period spreadsheet is complete, the Adjustments columns should have

Current assets and current liabilities for Brayden Company are as follows:​​ What conclusions can be drawn regarding Brayden's ability to meet its financial obligations?​

The post-closing trial balance differs from the adjusted trial balance in that it does not

There is really no benefit in preparing financial statements in any particular order.

If the totals of the Income Statement Debit and Credit columns of a work sheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

Reconstruct adjusting and closing entries for the month ended September 30 from the T accounts below.​​​ ​ ​

The majority of businesses end their fiscal year on December 31.

The following is the adjusted trial balance for Miller Company.​ Prepare closing entries and the post-closing trial balance.

The trial balance may be listed on the work sheet instead of being prepared separately.

Entries required to close the balances of the temporary accounts at the end of the period are called final entries.

The ability to convert assets into cash is called liquidity.

Closing entries are entered directly on to the work sheet.

Working capital is the excess of the current liabilities of a business over its current assets.

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

Current assets and current liabilities for Brayden Company are as follows: What conclusions can be drawn regarding Brayden's ability to meet its financial obligations?

Reconstruct adjusting and closing entries for the month ended September 30 from the T accounts below.

The following is the adjusted trial balance for Miller Company. Prepare closing entries and the post-closing trial balance.