Question 1

The post-closing trial balance is entered in the first two columns of a worksheet.

Accepted Answer

A) True 
 B)False

Question 2

The account balances appearing on the trial balance (below) were taken from the general ledger of Irick's Copy Shop at September 30.
Additional information for the month of September which has not yet been recorded in the accounts is as follows:
(a) A physical count of supplies indicates $300 on hand at September 30.
(b) The amount of insurance that expired in the month of September was $200.
(c) Depreciation on equipment for September was $400.
(d) Rent owed on the copy shop for the month of September was $600 but will not be paid until October.
Instructions
Using the above information, complete the worksheet on the following page for Irick's Copy Shop for the month of September.

Accepted Answer

The answer of The account balances appearing on the trial...

Question 3

A current asset is

Accepted Answer

A)  the last asset purchased by a business. 
B)  an asset which is currently being used to produce a product or service. 
C)  usually found as a separate classification in the income statement. 
D)  an asset that a company expects to convert to cash or use up within one year. 
A)  the last asset purchased by a business. 
B)  an asset which is currently being used to produce a product or service. 
C)  usually found as a separate classification in the income statement. 
D)  an asset that a company expects to convert to cash or use up within one year.

Question 4

Cash and office supplies are both classified as current assets.

Accepted Answer

A) True 
 B)False

Question 5

Both correcting entries and adjusting entries always affect at least one balance sheet account and one income statement account.

Accepted Answer

A) True 
 B)False

Question 6

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 7

What is the order in which assets are generally listed on a classified balance sheet?

Accepted Answer

A)  Current and long-term 
B)  Current; property, plant, and equipment; long-term investments; intangible assets 
C)  Current; property, plant, and equipment; intangible assets; long-term investments 
D)  Current; long-term investments; property, plant, and equipment; intangible assets 
A)  Current and long-term 
B)  Current; property, plant, and equipment; long-term investments; intangible assets 
C)  Current; property, plant, and equipment; intangible assets; long-term investments 
D)  Current; long-term investments; property, plant, and equipment; intangible assets

Question 8

Prepare the necessary correcting entry for each of the following.
a. A payment on account of $500 was debited to Accounts Payable $550 and credited to Cash $550.
b. The collection of Accounts Receivable of $660 was recorded as a debit to Cash $660 and a credit to Service Revenue $660.

Accepted Answer

The answer of Prepare the necessary correcting entry for each...

Question 9

The following selected account balances appear on the December 31, 2010 balance sheet of Chen Co.   What is the total amount of property, plant, and equipment that will be reported on the balance sheet?

Accepted Answer

A)  $1,950,000 
B)  $1,650,000 
C)  $2,400,000 
D)  $1,425,000 
A)  $1,950,000 
B)  $1,650,000 
C)  $2,400,000 
D)  $1,425,000

Question 10

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 11

The operating cycle of a company is the average time required to collect the receivables resulting from producing revenues.

Accepted Answer

A) True 
 B)False

Question 12

Presented below is an adjusted trial balance for Simon Company, at December 31, 2010.   
Instructions
(a) Prepare closing entries for December 31, 2010.
(b) Determine the balance in M. Simon's capital account after the entries have been posted.

Accepted Answer

The answer of Presented below is an adjusted trial balance...

Question 13

The first item listed under current liabilities is usually

Accepted Answer

A)  accounts payable. 
B)  notes payable. 
C)  salaries payable. 
D)  taxes payable. 
A)  accounts payable. 
B)  notes payable. 
C)  salaries payable. 
D)  taxes payable.

Question 14

The following information is for Acme Auto Supplies:   The total dollar amount of assets to be classified as investments is

Accepted Answer

A)  $0. 
B)  $150,000. 
C)  $80,000. 
D)  $180,000. 
A)  $0. 
B)  $150,000. 
C)  $80,000. 
D)  $180,000.

Question 15

On December 31, 2010 the adjusted trial balance of the Grimm Personnel Agency shows the following selected data:
Commission Receivable, $7,000
Commission Revenue, $70,000
Interest Expense, $10,500
Interest Payable, $2,500
Utilities Expense, $4,800
Accounts Payable, $2,400
Analysis indicates that adjusting entries were made for (a) $7,000 of employment commission revenue earned but not billed, (b) $2,500 of accrued but unpaid interest, and (c) $2,400 of utilities expense accrued but not paid.
Instructions
(a) Prepare the closing entries at December 31, 2010.
(b) Prepare the reversing entries on January 1, 2011.
(c) Enter the adjusted trial balance data in T-accounts. Post the entries in (a) and (b) and rule and balance the accounts.
(d) Prepare the entries to record (1) the collection of the accrued commission on January 8, (2) payment of the utility bill on January 10, and (3) payment of all the interest due ($3,000) on January 15.
(e) Post the entries in (d) to the temporary accounts.
(f) What is the interest expense for the month of January 2011?

Accepted Answer

The answer of On December 31, 2010 the adjusted trial...

Question 16

Topeka Bike Company received a $940 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $490 and a credit to Service Revenue $490. The correcting entry is

Accepted Answer

A)  debit Cash, $940; credit Accounts Receivable, $940. 
B)  debit Cash, $450 and Accounts Receivable, $490; credit Service Revenue, $940. 
C)  debit Cash, $450 and Service Revenue, $490; credit Accounts Receivable, $940. 
D)  debit Accounts Receivable, $940; credit Cash, $450 and Service Revenue, $490. 
A)  debit Cash, $940; credit Accounts Receivable, $940. 
B)  debit Cash, $450 and Accounts Receivable, $490; credit Service Revenue, $940. 
C)  debit Cash, $450 and Service Revenue, $490; credit Accounts Receivable, $940. 
D)  debit Accounts Receivable, $940; credit Cash, $450 and Service Revenue, $490.

Question 17

The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010:
The sub-classifications for assets on the company's classified balance sheet would include all of the following except:

Accepted Answer

A)  Current Assets. 
B)  Property, Plant, and Equipment. 
C)  Intangible Assets. 
D)  Long-term Assets. 
A)  Current Assets. 
B)  Property, Plant, and Equipment. 
C)  Intangible Assets. 
D)  Long-term Assets.

Question 18

Which account listed below would be double ruled in the ledger as part of the closing process?

Accepted Answer

A)  Cash 
B)  Owner's Capital 
C)  Owner's Drawing 
D)  Accumulated Depreciation 
A)  Cash 
B)  Owner's Capital 
C)  Owner's Drawing 
D)  Accumulated Depreciation

Question 19

An examination of the accounts of Nash Company for the month of June revealed the following errors after the transactions were journalized and posted.
1. A check for $750 from R. Joseph, a customer on account, was debited to Cash $750 and credited to Service Revenue, $750.
2. A payment for Advertising Expense costing $420 was debited to Utilities Expense, $240 and credited to Cash $240.
3. A bill for $840 for Office Supplies purchased on account was debited to Office Equipment, $480 and credited to Accounts Payable $480.
Instructions
Prepare correcting entries for each of the above assuming the erroneous entries are not reversed. Explain how the transaction as originally recorded affected net income for the month of June.

Accepted Answer

The answer of An examination of the accounts of Nash...

Question 20

The information for preparing a trial balance on a worksheet is obtained from

Accepted Answer

A)  financial statements. 
B)  general ledger accounts. 
C)  general journal entries. 
D)  business documents. 
A)  financial statements. 
B)  general ledger accounts. 
C)  general journal entries. 
D)  business documents.

Exam 4: Completing the Accounting Cycle

The post-closing trial balance is entered in the first two columns of a worksheet.

A current asset is

Cash and office supplies are both classified as current assets.

Both correcting entries and adjusting entries always affect at least one balance sheet account and one income statement account.

A post-closing trial balance will show

What is the order in which assets are generally listed on a classified balance sheet?

Prepare the necessary correcting entry for each of the following. a. A payment on account of $500 was debited to Accounts Payable $550 and credited to Cash $550. b. The collection of Accounts Receivable of $660 was recorded as a debit to Cash $660 and a credit to Service Revenue $660.

The following selected account balances appear on the December 31, 2010 balance sheet of Chen Co. What is the total amount of property, plant, and equipment that will be reported on the balance sheet?

The first required step in the accounting cycle is

The operating cycle of a company is the average time required to collect the receivables resulting from producing revenues.

Presented below is an adjusted trial balance for Simon Company, at December 31, 2010. Instructions (a) Prepare closing entries for December 31, 2010. (b) Determine the balance in M. Simon's capital account after the entries have been posted.

The first item listed under current liabilities is usually

The following information is for Acme Auto Supplies: The total dollar amount of assets to be classified as investments is

Topeka Bike Company received a $940 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $490 and a credit to Service Revenue $490. The correcting entry is

The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010: The sub-classifications for assets on the company's classified balance sheet would include all of the following except:

Which account listed below would be double ruled in the ledger as part of the closing process?

The information for preparing a trial balance on a worksheet is obtained from

Accounting in Action

The Recording Process

Adjusting the Accounts

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

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