Question 1

Which of the following depicts the proper sequence of steps in the accounting cycle?

Accepted Answer

A)  Journalize the transactions, analyze business transactions, prepare a trial balance 
B)  Prepare a trial balance, prepare financial statements, prepare adjusting entries 
C)  Prepare a trial balance, prepare adjusting entries, prepare financial statements 
D)  Prepare a trial balance, post to ledger accounts, post adjusting entries 
A)  Journalize the transactions, analyze business transactions, prepare a trial balance 
B)  Prepare a trial balance, prepare financial statements, prepare adjusting entries 
C)  Prepare a trial balance, prepare adjusting entries, prepare financial statements 
D)  Prepare a trial balance, post to ledger accounts, post adjusting entries

Question 2

After the adjusting entries are journalized and posted to the accounts in the general ledger, the balance of each account should agree with the balance shown on the

Accepted Answer

A)  adjusted trial balance. 
B)  post-closing trial balance. 
C)  the general journal. 
D)  adjustments columns of the worksheet. 
A)  adjusted trial balance. 
B)  post-closing trial balance. 
C)  the general journal. 
D)  adjustments columns of the worksheet.

Question 3

The owner's drawing account is closed to the Income Summary account in order to properly determine net income (or loss) for the period.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  debit to Income Summary for $3,400. 
B)  credit to Income Summary for $3,400. 
C)  debit to Income Summary for $7,000. 
D)  credit to Income Summary for $7,000. 
A)  debit to Income Summary for $3,400. 
B)  credit to Income Summary for $3,400. 
C)  debit to Income Summary for $7,000. 
D)  credit to Income Summary for $7,000.

Question 5

Identify which of the following accounts would have balances on a post-closing trial balance.
(1) Service Revenue
(2) Income Summary
(3) Notes Payable
(4) Interest Expense
(5) Cash

Accepted Answer

(3) Notes

Question 6

A worksheet is a multiple column form that facilitates the

Accepted Answer

A)  identification of events. 
B)  measurement process. 
C)  preparation of financial statements. 
D)  analysis process. 
A)  identification of events. 
B)  measurement process. 
C)  preparation of financial statements. 
D)  analysis process.

Question 7

All revenue and expense accounts have been closed at the end of the calendar year for Patton Company. The Income Summary account has total debits of $520,000 and total credits of $600,000. As of the same date, Dan Patton, Capital has a balance of $115,000, and Dan Patton, Drawing has a balance of $48,000.
Instructions
(a) Journalize the entries required to complete the closing of the accounts.
(b) Prepare an owner's equity statement for the year ended December 31, 2010.

Accepted Answer

The answer of All revenue and expense accounts have been...

Question 8

The worksheet for Ellis Company has been completed through the adjusted trial balance. You are ready to extend each amount to the appropriate financial statement column. Indicate for each account, the financial statement column to which the account should be extended by placing a check mark ( ) in the appropriate column.
-------------------------------------------

Accepted Answer

The answer of The worksheet for Ellis Company has been...

Question 9

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

Accepted Answer

A)  $220,000. 
B)  $150,000. 
C)  $300,000. 
D)  $180,000. 
A)  $220,000. 
B)  $150,000. 
C)  $300,000. 
D)  $180,000.

Question 10

The post-closing trial balance contains only

Accepted Answer

A)  income statement accounts. 
B)  balance sheet accounts. 
C)  balance sheet and income statement accounts. 
D)  income statement, balance sheet, and owner's equity statement accounts. 
A)  income statement accounts. 
B)  balance sheet accounts. 
C)  balance sheet and income statement accounts. 
D)  income statement, balance sheet, and owner's equity statement accounts.

Question 11

The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010:   What is the balance that would be reported for owner's equity at December 31, 2010?

Accepted Answer

A)  $102,000 
B)  $130,000 
C)  $144,000 
D)  $158,000 
A)  $102,000 
B)  $130,000 
C)  $144,000 
D)  $158,000

Question 12

Which one of the following is usually prepared only at the end of a company's annual accounting period?

Accepted Answer

A)  Preparing financial statements 
B)  Journalizing and posting adjusting entries 
C)  Journalizing and posting closing entries 
D)  Preparing an adjusted trial balance 
A)  Preparing financial statements 
B)  Journalizing and posting adjusting entries 
C)  Journalizing and posting closing entries 
D)  Preparing an adjusted trial balance

Question 13

The financial statement columns of the worksheet for Audio For Less at December 31, 2010, are as follows:   
Instructions
(a) Calculate the balance of R. Eakin, Capital that would appear on a balance sheet at December 31, 2010.
(b) Prepare a classified balance sheet for Audio For Less at December 31, 2010 assuming the note payable is a long-term liability.

Accepted Answer

The answer of The financial statement columns of the worksheet...

Question 14

Reversing entries are an optional bookkeeping procedure.

Accepted Answer

A) True 
 B)False

Question 15

Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period.

Accepted Answer

A) True 
 B)False

Question 16

The adjustments on a worksheet can be posted directly to the accounts in the ledger from the worksheet.

Accepted Answer

A) True 
 B)False

Question 17

Closing entries are necessary for

Accepted Answer

A)  permanent accounts only. 
B)  temporary accounts only. 
C)  both permanent and temporary accounts. 
D)  permanent or real accounts only. 
A)  permanent accounts only. 
B)  temporary accounts only. 
C)  both permanent and temporary accounts. 
D)  permanent or real accounts only.

Question 18

Which of the following steps in the accounting cycle may be performed most frequently?

Accepted Answer

A)  Prepare a post-closing trial balance 
B)  Journalize closing entries 
C)  Post closing entries 
D)  Prepare a trial balance 
A)  Prepare a post-closing trial balance 
B)  Journalize closing entries 
C)  Post closing entries 
D)  Prepare a trial balance

Question 19

The income statement for the month of June, 2010 of Ramirez Enterprises contains the following information:   At June 1, 2010, Ramirez reported owner's equity of $35,000. The company had no owner drawings during June. At June 30, 2010, the company will report owner's equity of

Accepted Answer

A)  $35,000. 
B)  $42,000. 
C)  $38,400. 
D)  $31,600. 
A)  $35,000. 
B)  $42,000. 
C)  $38,400. 
D)  $31,600.

Question 20

Stine Company paid $530 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $350 and a credit to Accounts Receivable, $350. The correcting entry is

Accepted Answer

The answer of Stine Company paid $530 on account to...

Exam 4: Completing the Accounting Cycle

Which of the following depicts the proper sequence of steps in the accounting cycle?

After the adjusting entries are journalized and posted to the accounts in the general ledger, the balance of each account should agree with the balance shown on the

The owner's drawing account is closed to the Income Summary account in order to properly determine net income (or loss) for the period.

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

Identify which of the following accounts would have balances on a post-closing trial balance. (1) Service Revenue (2) Income Summary (3) Notes Payable (4) Interest Expense (5) Cash

A worksheet is a multiple column form that facilitates the

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

The post-closing trial balance contains only

The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010: What is the balance that would be reported for owner's equity at December 31, 2010?

Which one of the following is usually prepared only at the end of a company's annual accounting period?

Reversing entries are an optional bookkeeping procedure.

Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period.

The adjustments on a worksheet can be posted directly to the accounts in the ledger from the worksheet.

Closing entries are necessary for

Which of the following steps in the accounting cycle may be performed most frequently?

The income statement for the month of June, 2010 of Ramirez Enterprises contains the following information: At June 1, 2010, Ramirez reported owner's equity of $35,000. The company had no owner drawings during June. At June 30, 2010, the company will report owner's equity of

Stine Company paid $530 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $350 and a credit to Accounts Receivable, $350. The correcting entry is

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Accounting for Merchandising Operations

Inventories

Accounting Information Systems

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Accounting for Receivables

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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

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Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

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