Question 1

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

Accepted Answer

A)  $140,000. 
B)  $220,000. 
C)  $360,000. 
D)  $500,000. 
A)  $140,000. 
B)  $220,000. 
C)  $360,000. 
D)  $500,000.

Question 2

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018:   What is total liabilities and stockholders' equity at December 31, 2018?

Accepted Answer

A)  $176,000 
B)  $218,000 
C)  $190,000 
D)  $232,000 
A)  $176,000 
B)  $218,000 
C)  $190,000 
D)  $232,000

Question 3

It is not necessary to prepare formal financial statements if a worksheet has been prepared because financial position and net income are shown on the worksheet.

Accepted Answer

A) True 
 B)False

Question 4

In order to close the dividends account, the

Accepted Answer

A)  income summary account should be debited. 
B)  income summary account should be credited. 
C)  retained earnings account should be credited. 
D)  retained earnings account should be debited. 
A)  income summary account should be debited. 
B)  income summary account should be credited. 
C)  retained earnings account should be credited. 
D)  retained earnings account should be debited.

Question 5

In preparing closing entries

Accepted Answer

A)  each revenue account will be credited. 
B)  each expense account will be credited. 
C)  the retained earnings account will be debited if there is net income for the period. 
D)  the dividends account will be debited. 
A)  each revenue account will be credited. 
B)  each expense account will be credited. 
C)  the retained earnings account will be debited if there is net income for the period. 
D)  the dividends account will be debited.

Question 6

Wakefield Company discovered the following errors made in January 2018.
1. A payment of salaries expense of $900 was debited to Equipment and credited to Cash, both for $900.
2. A collection of $2,000 from a client on account was debited to Cash $200 and credited to Service Revenue $200.
3. The purchase of equipment on account for $680 was debited to Equipment $860 and credited to Accounts Payable $860.
Instructions
Correct the errors by reversing the incorrect entry and preparing the correct entry.

Accepted Answer

The answer of Wakefield Company discovered the following errors made...

Question 7

After all closing entries have been journalized and posted, the final step in the accounting cycle is to prepare a ______________ trial balance.

Accepted Answer

The answer of After all closing entries have been journalized...

Question 8

The account balances appearing in the adjusted trial balance columns are extended to the ______________ columns and the ______________ columns.

Accepted Answer

income sta

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The following accounts were included on Aeroplane Consultants adjusted trial balance at December 31, 2018:   
(a) What are total current assets?
(b) What are total current liabilities?

Accepted Answer

(a) $12,000 + $5,500

Question 11

Preparing a worksheet involves

Accepted Answer

A)  two steps. 
B)  three steps. 
C)  four steps. 
D)  five steps. 
A)  two steps. 
B)  three steps. 
C)  four steps. 
D)  five steps.

Question 12

Two permanent accounts that are part of the stockholders' equity in a corporation are ______________ and ______________.

Accepted Answer

Common Sto

Question 13

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 14

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 15

Under IFRS

Accepted Answer

A)  comparative prior-period information must be presented, but financial statements need not be provided annually. 
B)  comparative prior-period informaton must be presented, and financial statements must be provided annually. 
C)  comparative prior-period information is not required, and financial statements need not be provided annually. 
D)  comparative prior-period information is not required, but financial statements must be provided annually.
IFRS. 
A)  comparative prior-period information must be presented, but financial statements need not be provided annually. 
B)  comparative prior-period informaton must be presented, and financial statements must be provided annually. 
C)  comparative prior-period information is not required, and financial statements need not be provided annually. 
D)  comparative prior-period information is not required, but financial statements must be provided annually.
IFRS.

Question 16

Closing entries are

Accepted Answer

A)  an optional step in the accounting cycle. 
B)  posted to the ledger accounts from the worksheet. 
C)  made to close permanent or real accounts. 
D)  journalized in the general journal. 
A)  an optional step in the accounting cycle. 
B)  posted to the ledger accounts from the worksheet. 
C)  made to close permanent or real accounts. 
D)  journalized in the general journal.

Question 17

Both IFRS and GAAP require disclosure about

Accepted Answer

A)  accounting policies followed. 
B)  judgements that management has made in the process of applying the entity's accounting policies. 
C)  the key assumptions and estimation uncertainty. 
D)  All of these answer choices are correct.
IFRS. 
A)  accounting policies followed. 
B)  judgements that management has made in the process of applying the entity's accounting policies. 
C)  the key assumptions and estimation uncertainty. 
D)  All of these answer choices are correct.
IFRS.

Question 18

A worksheet is a mandatory form that must be prepared along with an income statement and balance sheet.

Accepted Answer

A) True 
 B)False

Question 19

Under Protection provides underground storage facilities for companies desiring off-site storage of sensitive documents, computer records, and other items. They have developed a sophisticated surveillance and security system which they initially used in their own facilities, and have recently started to market elsewhere as well.
The underground storage facilities are made from natural caves in some instances (reinforced and modified as appropriate) and from excavations of natural rock formations in others. The land was purchased over ten years ago for a total of $2.5 million. The modifications have cost approximately $15 million more. The company has never depreciated its storage facilities because the market value of the property has continued to rise. Presently, the market price is between $30 and $40 million.
Betsy Brantley, a new accounting manager, questioned this depreciation policy. Will Gray, the controller, has told her that she needn't worry about it. For one thing, he says, this is really a special form of Land account, which should not be depreciated at all. For another, this is a privately held company, and so they don't need to worry about misleading investors. All the owners know about and approve the depreciation policy.
Required:
What are the ethical issues in this situation?

Accepted Answer

The ethical issue is one of integrity. E

Question 20

Liabilities are generally classified as either ______________ or ______________ on a classified balance sheet.

Accepted Answer

The answer of Liabilities are generally classified as either ______________...

Exam 4: Completing the Accounting Cycle

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

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018: What is total liabilities and stockholders' equity at December 31, 2018?

It is not necessary to prepare formal financial statements if a worksheet has been prepared because financial position and net income are shown on the worksheet.

In order to close the dividends account, the

In preparing closing entries

After all closing entries have been journalized and posted, the final step in the accounting cycle is to prepare a ______________ trial balance.

The account balances appearing in the adjusted trial balance columns are extended to the ______________ columns and the ______________ columns.

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

The following accounts were included on Aeroplane Consultants adjusted trial balance at December 31, 2018: (a) What are total current assets? (b) What are total current liabilities?

Preparing a worksheet involves

Two permanent accounts that are part of the stockholders' equity in a corporation are ______________ and ______________.

If errors occur in the recording process, they

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

Under IFRS

Closing entries are

Both IFRS and GAAP require disclosure about

A worksheet is a mandatory form that must be prepared along with an income statement and balance sheet.

Liabilities are generally classified as either ______________ or ______________ on a classified balance sheet.

Accounting in Action

The Recording Process

Adjusting the Accounts

Accounting for Merchandising Operations Perpetual Approach

Inventories Periodic Approach

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, and Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Time Value of Money

Investments

Payroll Accounting

Subsidiary Ledgers and Special Journals

Other Significant Liabilities

Filters

The account balances appearing in the adjusted trial balance columns are extended to the columns and the columns.

Two permanent accounts that are part of the stockholders' equity in a corporation are and .

Liabilities are generally classified as either or on a classified balance sheet.