Question 1

Current assets are customarily the first items listed on a classified balance sheet.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  debit to Income Summary for $3,500. 
B)  credit to Income Summary for $3,500. 
C)  debit to Revenues for $70,000. 
D)  credit to Revenues for $70,000. 
A)  debit to Income Summary for $3,500. 
B)  credit to Income Summary for $3,500. 
C)  debit to Revenues for $70,000. 
D)  credit to Revenues for $70,000.

Question 3

The following information is for Benton Office Supplies:   The total dollar amount of assets to be classified as property, plant, and equipment is

Accepted Answer

A)  $320,000. 
B)  $170,000. 
C)  $245,000. 
D)  $190,000. 
A)  $320,000. 
B)  $170,000. 
C)  $245,000. 
D)  $190,000.

Question 4

The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010:   What are total current assets at December 31, 2010?

Accepted Answer

A)  $26,000 
B)  $32,000 
C)  $36,000 
D)  $218,000 
A)  $26,000 
B)  $32,000 
C)  $36,000 
D)  $218,000

Question 5

The following items are taken from the adjusted trial balance of Kling Company for the month ending July 31, 2010:   
Prepare the current assets section of Kling's classified balance sheet.

Accepted Answer

Current assets:
Cash

Question 6

The adjusted account balances of the Fitness Center at July 31 are as follows:   
Instructions
Prepare the end of the period closing entries for the Fitness Center.

Accepted Answer

The answer of The adjusted account balances of the Fitness...

Question 7

After closing entries are posted, the balance in the owner's capital account in the ledger will be equal to

Accepted Answer

A)  the beginning owner's capital reported on the owner's equity statement. 
B)  the amount of the owner's capital reported on the balance sheet. 
C)  zero. 
D)  the net income for the period. 
A)  the beginning owner's capital reported on the owner's equity statement. 
B)  the amount of the owner's capital reported on the balance sheet. 
C)  zero. 
D)  the net income for the period.

Question 8

On May 25, Carlin Company received a $550 check from Andy Jeter for services to be performed in the future. The bookkeeper for Carlin Company incorrectly debited Cash for $550 and credited Accounts Receivable for $550. The amounts have been posted to the ledger. To correct this entry, the bookkeeper should:

Accepted Answer

A)  debit Cash $550 and credit Unearned Service Revenue $550. 
B)  debit Accounts Receivable $550 and credit Service Revenue $550. 
C)  debit Accounts Receivable $550 and credit Cash $550. 
D)  debit Accounts Receivable $550 and credit Unearned Service Revenue $550. 
A)  debit Cash $550 and credit Unearned Service Revenue $550. 
B)  debit Accounts Receivable $550 and credit Service Revenue $550. 
C)  debit Accounts Receivable $550 and credit Cash $550. 
D)  debit Accounts Receivable $550 and credit Unearned Service Revenue $550.

Question 9

Prepare the necessary correcting entry for each of the following.
a. A collection on account of $370 from a customer was credited to Accounts Receivable $730 and debited to Cash $730.
b. The purchase of supplies on account for $250 was recorded as a debit to Equipment $250 and a credit to Accounts Payable $250.

Accepted Answer

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

Question 10

Current liabilities are obligations that the company is to pay within the coming year.

Accepted Answer

A) True 
 B)False

Question 11

The income statement for the month of June, 2010 of Ramirez Enterprises contains the following information:   After the revenue and expense accounts have been closed, the balance in Income Summary will be

Accepted Answer

A)  $0. 
B)  a debit balance of $3,400. 
C)  a credit balance of $3,400. 
D)  a credit balance of $7,000. 
A)  $0. 
B)  a debit balance of $3,400. 
C)  a credit balance of $3,400. 
D)  a credit balance of $7,000.

Question 12

A post-closing trial balance is prepared

Accepted Answer

A)  after closing entries have been journalized and posted. 
B)  before closing entries have been journalized and posted. 
C)  after closing entries have been journalized but before the entries are posted. 
D)  before closing entries have been journalized but after the entries are posted. 
A)  after closing entries have been journalized and posted. 
B)  before closing entries have been journalized and posted. 
C)  after closing entries have been journalized but before the entries are posted. 
D)  before closing entries have been journalized but after the entries are posted.

Question 13

Closing entries are journalized after adjusting entries have been journalized.

Accepted Answer

A) True 
 B)False

Question 14

Which statement about long-term investments is not true?

Accepted Answer

A)  They will be held for more than one year. 
B)  They are not currently used in the operation of the business. 
C)  They include investments in stock of other companies and land held for future use. 
D)  They can never include cash accounts. 
A)  They will be held for more than one year. 
B)  They are not currently used in the operation of the business. 
C)  They include investments in stock of other companies and land held for future use. 
D)  They can never include cash accounts.

Question 15

Which of the following companies would be least likely to use a worksheet to facilitate the adjustment process?

Accepted Answer

A)  Large company with numerous accounts 
B)  Small company with numerous accounts 
C)  All companies, since worksheets are required under generally accepted accounting principles 
D)  Small company with few accounts 
A)  Large company with numerous accounts 
B)  Small company with numerous accounts 
C)  All companies, since worksheets are required under generally accepted accounting principles 
D)  Small company with few accounts

Question 16

All of the following are owner's equity accounts except

Accepted Answer

A)  the Capital account. 
B)  Capital Stock. 
C)  Investment in Stock. 
D)  Retained Earnings. 
A)  the Capital account. 
B)  Capital Stock. 
C)  Investment in Stock. 
D)  Retained Earnings.

Question 17

The account, Supplies, will appear in the following debit columns of the worksheet.

Accepted Answer

A)  Trial balance 
B)  Adjusted trial balance 
C)  Balance sheet 
D)  All of these 
A)  Trial balance 
B)  Adjusted trial balance 
C)  Balance sheet 
D)  All of these

Question 18

On March 8, Fernetti Company bought office supplies on account from the Flint Company for $880. Fernetti Company incorrectly debited Office Equipment for $800 and credited Accounts Payable for $800. The entries have been posted to the ledger. the correcting entry should be:

Accepted Answer

The answer of On March 8, Fernetti Company bought office...

Question 19

The closing entry process consists of closing

Accepted Answer

A)  all asset and liability accounts. 
B)  out the owner's capital account. 
C)  all permanent accounts. 
D)  all temporary accounts. 
A)  all asset and liability accounts. 
B)  out the owner's capital account. 
C)  all permanent accounts. 
D)  all temporary accounts.

Question 20

The income statement and balance sheet columns of Reed Company's worksheet reflect the following totals:   The net income (or loss) for the period is

Accepted Answer

A)  $48,000 income. 
B)  $10,000 income. 
C)  $10,000 loss. 
D)  not determinable. 
A)  $48,000 income. 
B)  $10,000 income. 
C)  $10,000 loss. 
D)  not determinable.

Exam 4: Completing the Accounting Cycle

Current assets are customarily the first items listed on a classified balance sheet.

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

The following information is for Benton Office Supplies: The total dollar amount of assets to be classified as property, plant, and equipment is

The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010: What are total current assets at December 31, 2010?

The following items are taken from the adjusted trial balance of Kling Company for the month ending July 31, 2010: Prepare the current assets section of Kling's classified balance sheet.

The adjusted account balances of the Fitness Center at July 31 are as follows: Instructions Prepare the end of the period closing entries for the Fitness Center.

After closing entries are posted, the balance in the owner's capital account in the ledger will be equal to

Current liabilities are obligations that the company is to pay within the coming year.

The income statement for the month of June, 2010 of Ramirez Enterprises contains the following information: After the revenue and expense accounts have been closed, the balance in Income Summary will be

A post-closing trial balance is prepared

Closing entries are journalized after adjusting entries have been journalized.

Which statement about long-term investments is not true?

Which of the following companies would be least likely to use a worksheet to facilitate the adjustment process?

All of the following are owner's equity accounts except

The account, Supplies, will appear in the following debit columns of the worksheet.

On March 8, Fernetti Company bought office supplies on account from the Flint Company for $880. Fernetti Company incorrectly debited Office Equipment for $800 and credited Accounts Payable for $800. The entries have been posted to the ledger. the correcting entry should be:

The closing entry process consists of closing

The income statement and balance sheet columns of Reed Company's worksheet reflect the following totals: The net income (or loss) for the period is

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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