Question 1

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 2

It is not true that current assets are assets that a company expects to

Accepted Answer

A)  realize in cash within one year. 
B)  sell within one year. 
C)  use up within one year. 
D)  acquire within one year. 
A)  realize in cash within one year. 
B)  sell within one year. 
C)  use up within one year. 
D)  acquire within one year.

Question 3

A post-closing trial balance will show

Accepted Answer

A)  zero balances for all accounts. 
B)  zero balances for balance sheet accounts. 
C)  only balance sheet accounts. 
D)  only income statement accounts. 
A)  zero balances for all accounts. 
B)  zero balances for balance sheet accounts. 
C)  only balance sheet accounts. 
D)  only income statement accounts.

Question 4

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 5

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 6

In a corporation, Retained Earnings is a part of owners' equity.

Accepted Answer

A) True 
 B)False

Question 7

After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances.

Accepted Answer

A) True 
 B)False

Question 8

The income statement for the month of June, 2010 of Ramirez Enterprises contains the following information:   The entry to close the expense accounts includes a

Accepted Answer

A)  debit to Income Summary for $3,400. 
B)  credit to Rent Expense for $1,000, 
C)  credit to Income Summary for $3,600. 
D)  debit to Wages Expense for $2,000. 
A)  debit to Income Summary for $3,400. 
B)  credit to Rent Expense for $1,000, 
C)  credit to Income Summary for $3,600. 
D)  debit to Wages Expense for $2,000.

Question 9

Selected worksheet data for Carpenter Company are presented below.   
Instructions
(a) Fill in the missing amounts.
(b) Prepare the adjusting entries that were made.

Accepted Answer

(a) Accounts Receivable-$20,000 ($31,000

Question 10

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

Accepted Answer

A)  $0. 
B)  $150,000. 
C)  $75,000. 
D)  $180,000. 
A)  $0. 
B)  $150,000. 
C)  $75,000. 
D)  $180,000.

Question 11

On September 23, Riley Company received a $350 check from Jack Colaw for services to be performed in the future. The bookkeeper for Riley Company incorrectly debited Cash for $350 and credited Accounts Receivable for $350. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should

Accepted Answer

A)  debit Cash $350 and credit Unearned Service Revenue $350. 
B)  debit Accounts Receivable $350 and credit Unearned Service Revenue $350. 
C)  debit Accounts Receivable $350 and credit Cash $350. 
D)  debit Accounts Receivable $350 and credit Service Revenue $350. 
A)  debit Cash $350 and credit Unearned Service Revenue $350. 
B)  debit Accounts Receivable $350 and credit Unearned Service Revenue $350. 
C)  debit Accounts Receivable $350 and credit Cash $350. 
D)  debit Accounts Receivable $350 and credit Service Revenue $350.

Question 12

Adjusting entries are prepared from

Accepted Answer

A)  source documents. 
B)  the adjustments columns of the worksheet. 
C)  the general ledger. 
D)  last year's worksheet. 
A)  source documents. 
B)  the adjustments columns of the worksheet. 
C)  the general ledger. 
D)  last year's worksheet.

Question 13

If total credits in the income statement columns of a worksheet exceed total debits, the enterprise has net income.

Accepted Answer

A) True 
 B)False

Question 14

If a worksheet is used, financial statements can be prepared before adjusting entries are journalized.

Accepted Answer

A) True 
 B)False

Question 15

The income statement for the year 2010 of Poole Co. contains the following information:   The entry to close the expense accounts includes a

Accepted Answer

A)  debit to Income Summary for $3,500. 
B)  credit to Income Summary for $3,500. 
C)  debit to Income Summary for $73,500. 
D)  debit to Wages Expense for $2,500. 
A)  debit to Income Summary for $3,500. 
B)  credit to Income Summary for $3,500. 
C)  debit to Income Summary for $73,500. 
D)  debit to Wages Expense for $2,500.

Question 16

The income statement for the year 2010 of Poole Co. contains the following information:   At January 1, 2010, Poole reported owner's equity of $50,000. Owner drawings for the year totalled $10,000. At December 31, 2010, the company will report owner's equity of

Accepted Answer

A)  $13,500. 
B)  $36,500. 
C)  $40,000. 
D)  $43,500. 
A)  $13,500. 
B)  $36,500. 
C)  $40,000. 
D)  $43,500.

Question 17

The following information is available for Horton Company for the year ended December 31, 2010:   
Instructions
Use the above information to prepare a classified balance sheet for the year ended December 31, 2010.

Accepted Answer

The answer of The following information is available for Horton...

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

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 20

The post-closing trial balance will contain only owner's equity statement accounts and balance sheet accounts.

Accepted Answer

A) True 
 B)False

Exam 4: Completing the Accounting Cycle

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

It is not true that current assets are assets that a company expects to

A post-closing trial balance will show

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

The final step in the accounting cycle is to prepare

In a corporation, Retained Earnings is a part of owners' equity.

After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances.

The income statement for the month of June, 2010 of Ramirez Enterprises contains the following information: The entry to close the expense accounts includes a

Selected worksheet data for Carpenter Company are presented below. Instructions (a) Fill in the missing amounts. (b) Prepare the adjusting entries that were made.

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

Adjusting entries are prepared from

If total credits in the income statement columns of a worksheet exceed total debits, the enterprise has net income.

If a worksheet is used, financial statements can be prepared before adjusting entries are journalized.

The income statement for the year 2010 of Poole Co. contains the following information: The entry to close the expense accounts includes a

The income statement for the year 2010 of Poole Co. contains the following information: At January 1, 2010, Poole reported owner's equity of $50,000. Owner drawings for the year totalled $10,000. At December 31, 2010, the company will report owner's equity of

The following information is available for Horton Company for the year ended December 31, 2010: Instructions Use the above information to prepare a classified balance sheet for the year ended December 31, 2010.

The net income (or loss) for the period

If errors occur in the recording process, they

The post-closing trial balance will contain only owner's equity statement accounts and balance sheet accounts.

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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