Question 1

A classified balance sheet

Accepted Answer

A) Shows the effect of profit and withdrawals on owner's capital. 
B) Presents revenues, expenses and profit. 
C) Shows operating, investing, and financing activities. 
D) Organizes assets and liabilities into important subgroups. 
E) Measures a company's ability to pay its bills on time. 
A) Shows the effect of profit and withdrawals on owner's capital. 
B) Presents revenues, expenses and profit. 
C) Shows operating, investing, and financing activities. 
D) Organizes assets and liabilities into important subgroups. 
E) Measures a company's ability to pay its bills on time. D

Question 2

Current liabilities become due

Accepted Answer

A) Within the operating cycle of a business. 
B) Within one year. 
C) When bills have to be paid. 
D) A or B, whichever is longer. 
E) All of these answers are correct. 
A) Within the operating cycle of a business. 
B) Within one year. 
C) When bills have to be paid. 
D) A or B, whichever is longer. 
E) All of these answers are correct. D

Question 3

Using the above reference, prepare an income statement, statement of changes in equity and a classified balance sheet. This is Lucie's first year of operations.

Accepted Answer

Lucie Accounting
Balance Sheet
December 31, 2015
Assets Liabilities
Current Assets Current Liabilities
Cash $13,000 Salaries payable $8,000

Question 4

The J. Dawson, Capital account has a credit balance of $1,200 before closing entries aremade. If total revenues for the year are $65,200, total expenses $49,800, andwithdrawals are $2,400, what is the ending balance in the J. Dawson, Capital account after all closing entries have been made?

Accepted Answer

A) $16,600. 
B) $14,200. 
C) $7,600. 
D) $23,200. 
E) $5,200. 
A) $16,600. 
B) $14,200. 
C) $7,600. 
D) $23,200. 
E) $5,200.

Question 5

Identify the steps in the accounting cycle

Accepted Answer

The accounting cycle consists of ten ste

Question 6

Which statement is incorrect?

Accepted Answer

A) Revenue accounts are closed to Income Summary. 
B) Income Summary is closed to Capital. 
C) Withdrawals are closed to Income Summary. 
D) Expense accounts are closed to Income Summary. 
E) Withdrawals are closed to Capital. 
A) Revenue accounts are closed to Income Summary. 
B) Income Summary is closed to Capital. 
C) Withdrawals are closed to Income Summary. 
D) Expense accounts are closed to Income Summary. 
E) Withdrawals are closed to Capital.

Question 7

Closing the temporary accounts at the end of each accounting period

Accepted Answer

A) Gives the withdrawals account a zero balance. 
B) Serves to transfer the effects of these accounts to the proper equity account on the balance sheet. 
C) Prepares the withdrawals account for use in the next period. 
D) Gives the revenue and expense accounts zero balances. 
E) All of these answers are correct. 
A) Gives the withdrawals account a zero balance. 
B) Serves to transfer the effects of these accounts to the proper equity account on the balance sheet. 
C) Prepares the withdrawals account for use in the next period. 
D) Gives the revenue and expense accounts zero balances. 
E) All of these answers are correct.

Question 8

After all closing entries are made and posted, the balance in the owners' capital accountin the ledger will be equal to:

Accepted Answer

A) Zero. 
B) The beginning balance in owners' capital in the statement of changes in equity. 
C) The balance of owners' capital on the post-closing trial balance. 
D) The balance of owners' capital on the pre-closing trial balance. 
E) Profit or loss for the year. 
A) Zero. 
B) The beginning balance in owners' capital in the statement of changes in equity. 
C) The balance of owners' capital on the post-closing trial balance. 
D) The balance of owners' capital on the pre-closing trial balance. 
E) Profit or loss for the year.

Question 9

Reversing entries are

Accepted Answer

A) Linked to accrued assets and liabilities that were created by adjusting entries at the end of the previous accounting period. 
B) Used to simplify a company's record keeping. 
C) Dated the first day of the next accounting period. 
D) Optional. 
E) All of these answers are correct. 
A) Linked to accrued assets and liabilities that were created by adjusting entries at the end of the previous accounting period. 
B) Used to simplify a company's record keeping. 
C) Dated the first day of the next accounting period. 
D) Optional. 
E) All of these answers are correct.

Question 10

The asset section of a classified balance sheet includes

Accepted Answer

A) Current assets, long-term investments, property, plant and equipment, and intangible assets. 
B) Current assets, liabilities, property, plant and equipment, and intangible assets. 
C) Current assets, long-term investments, property, plant and equipment, and withdrawals. 
D) Current assets, non-current assets, equity, and intangible assets. 
E) Current liabilities, long-term investments, property, plant and equipment, and intangible assets. 
A) Current assets, long-term investments, property, plant and equipment, and intangible assets. 
B) Current assets, liabilities, property, plant and equipment, and intangible assets. 
C) Current assets, long-term investments, property, plant and equipment, and withdrawals. 
D) Current assets, non-current assets, equity, and intangible assets. 
E) Current liabilities, long-term investments, property, plant and equipment, and intangible assets.

Question 11

Which of the following statements is true?

Accepted Answer

A) Preparing a post-closing trial balance helps to prove the accuracy of the adjusting and closing procedures. 
B) Journalizing consists of analyzing and recording transactions in T-accounts. 
C) The information on the work sheet can be used in place of preparing financial statements. 
D) By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts. 
E) All of these statements are true. 
A) Preparing a post-closing trial balance helps to prove the accuracy of the adjusting and closing procedures. 
B) Journalizing consists of analyzing and recording transactions in T-accounts. 
C) The information on the work sheet can be used in place of preparing financial statements. 
D) By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts. 
E) All of these statements are true.

Question 12

Which of the following errors would cause the balance sheet columns of a work sheet to be out of balance?

Accepted Answer

A) Entering a revenue amount in the Balance Sheet Debit column. 
B) Entering a liability amount in the Income Statement Credit column. 
C) Entering an expense amount in the Balance Sheet Debit column. 
D) Entering an asset amount in the Income Statement Debit column. 
E) Entering a liability amount in the Balance Sheet Credit column. 
A) Entering a revenue amount in the Balance Sheet Debit column. 
B) Entering a liability amount in the Income Statement Credit column. 
C) Entering an expense amount in the Balance Sheet Debit column. 
D) Entering an asset amount in the Income Statement Debit column. 
E) Entering a liability amount in the Balance Sheet Credit column.

Question 13

The information on a work sheet can be used to prepare

Accepted Answer

A) Interim financial statements. 
B) Adjusting entries. 
C) Closing entries. 
D) Year-end financial statements. 
E) All of these answers are correct. 
A) Interim financial statements. 
B) Adjusting entries. 
C) Closing entries. 
D) Year-end financial statements. 
E) All of these answers are correct.

Question 14

Reversing entries

Accepted Answer

A) Are required by CRA. 
B) Are optional. 
C) Fix errors in journal entries. 
D) Are not posted to the ledger. 
E) Are mandatory. 
A) Are required by CRA. 
B) Are optional. 
C) Fix errors in journal entries. 
D) Are not posted to the ledger. 
E) Are mandatory.

Question 15

The Income Summary account is a(n)

Accepted Answer

A) Balance Sheet account. 
B) Income Statement account. 
C) Temporary account. 
D) Permanent account. 
E) Both Income Statement and Balance Sheet accounts. 
A) Balance Sheet account. 
B) Income Statement account. 
C) Temporary account. 
D) Permanent account. 
E) Both Income Statement and Balance Sheet accounts.

Question 16

A trial balance prepared after the adjusting and closing entries have been posted, and which is the final step in the accounting cycle, is a(n):

Accepted Answer

A) Post-closing trial balance. 
B) Adjusted trial balance. 
C) Book of final entry. 
D) Unadjusted trial balance. 
E) Work sheet. 
A) Post-closing trial balance. 
B) Adjusted trial balance. 
C) Book of final entry. 
D) Unadjusted trial balance. 
E) Work sheet.

Question 17

Use the balance sheet you prepared above to calculate the current ratio.Comment on the company's liquidity position

Accepted Answer

The current ratio is
1,885 ÷ 2,215 = .85

Question 18

Journal entries recorded at the end of each accounting period to prepare the revenue,expense, and withdrawals accounts for the upcoming year and to update the owner's capital account for the events of the year just finished are:

Accepted Answer

A) Closing entries. 
B) Work sheet entries. 
C) Adjusting entries. 
D) Final entries. 
E) None of these answers is correct. 
A) Closing entries. 
B) Work sheet entries. 
C) Adjusting entries. 
D) Final entries. 
E) None of these answers is correct.

Question 19

When closing entries are made

Accepted Answer

A) All balance sheet accounts are closed. 
B) All permanent accounts are closed but not the temporary accounts. 
C) All real accounts are closed but not the temporary accounts. 
D) All ledger accounts are closed to start the new fiscal period. 
E) All temporary accounts are closed but not the permanent accounts. 
A) All balance sheet accounts are closed. 
B) All permanent accounts are closed but not the temporary accounts. 
C) All real accounts are closed but not the temporary accounts. 
D) All ledger accounts are closed to start the new fiscal period. 
E) All temporary accounts are closed but not the permanent accounts.

Question 20

An error is indicated if the following account has a balance appearing on the post-closing trial balance:

Accepted Answer

A) Office Equipment. 
B) Depreciation expense, Office Equipment. 
C) Ted Nash, Capital. 
D) Accumulated Depreciation, Office Equipment. 
E) Salaries Payable. 
A) Office Equipment. 
B) Depreciation expense, Office Equipment. 
C) Ted Nash, Capital. 
D) Accumulated Depreciation, Office Equipment. 
E) Salaries Payable.

A classified balance sheet

Current liabilities become due

Using the above reference, prepare an income statement, statement of changes in equity and a classified balance sheet. This is Lucie's first year of operations.

The J. Dawson, Capital account has a credit balance of $1,200 before closing entries aremade. If total revenues for the year are $65,200, total expenses $49,800, andwithdrawals are $2,400, what is the ending balance in the J. Dawson, Capital account after all closing entries have been made?

Identify the steps in the accounting cycle

Which statement is incorrect?

Closing the temporary accounts at the end of each accounting period

After all closing entries are made and posted, the balance in the owners' capital accountin the ledger will be equal to:

Reversing entries are

The asset section of a classified balance sheet includes

Which of the following statements is true?

Which of the following errors would cause the balance sheet columns of a work sheet to be out of balance?

The information on a work sheet can be used to prepare

Reversing entries

The Income Summary account is a(n)

A trial balance prepared after the adjusting and closing entries have been posted, and which is the final step in the accounting cycle, is a(n):

Use the balance sheet you prepared above to calculate the current ratio.Comment on the company's liquidity position

Journal entries recorded at the end of each accounting period to prepare the revenue,expense, and withdrawals accounts for the upcoming year and to update the owner's capital account for the events of the year just finished are:

When closing entries are made

An error is indicated if the following account has a balance appearing on the post-closing trial balance:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters

Exam 4: Completing the Accounting Cycle and Classifying Accounts

A classified balance sheet

Current liabilities become due

Using the above reference, prepare an income statement, statement of changes in equity and a classified balance sheet. This is Lucie's first year of operations.

The J. Dawson, Capital account has a credit balance of $1,200 before closing entries aremade. If total revenues for the year are $65,200, total expenses $49,800, andwithdrawals are $2,400, what is the ending balance in the J. Dawson, Capital account after all closing entries have been made?

Identify the steps in the accounting cycle

Which statement is incorrect?

Closing the temporary accounts at the end of each accounting period

After all closing entries are made and posted, the balance in the owners' capital accountin the ledger will be equal to:

Reversing entries are

The asset section of a classified balance sheet includes

Which of the following statements is true?

Which of the following errors would cause the balance sheet columns of a work sheet to be out of balance?

The information on a work sheet can be used to prepare

Reversing entries

The Income Summary account is a(n)

A trial balance prepared after the adjusting and closing entries have been posted, and which is the final step in the accounting cycle, is a(n):

Use the balance sheet you prepared above to calculate the current ratio.Comment on the company's liquidity position

Journal entries recorded at the end of each accounting period to prepare the revenue,expense, and withdrawals accounts for the upcoming year and to update the owner's capital account for the events of the year just finished are:

When closing entries are made

An error is indicated if the following account has a balance appearing on the post-closing trial balance:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters