Question 1

Which one of the following is an optional step in the accounting cycle of a business?

Accepted Answer

A)  Analyze business transactions 
B)  Prepare a worksheet 
C)  Prepare a trial balance 
D)  Post to the ledger accounts 
A)  Analyze business transactions 
B)  Prepare a worksheet 
C)  Prepare a trial balance 
D)  Post to the ledger accounts

Question 2

Merriweather Post Pavillion received a $820 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $280 and a credit to Service Revenue $280. The correcting entry is

Accepted Answer

A)  debit Cash, $820; credit Accounts Receivable, $820. 
B)  debit Cash, $540 and Accounts Receivable, $280; credit Service Revenue, $820. 
C)  debit Cash, $540 and Service Revenue, $280; credit Accounts Receivable, $820. 
D)  debit Accounts Receivable, $820; credit Cash, $540 and Service Revenue, $280. 
A)  debit Cash, $820; credit Accounts Receivable, $820. 
B)  debit Cash, $540 and Accounts Receivable, $280; credit Service Revenue, $820. 
C)  debit Cash, $540 and Service Revenue, $280; credit Accounts Receivable, $820. 
D)  debit Accounts Receivable, $820; credit Cash, $540 and Service Revenue, $280.

Question 3

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 retained earnings statement accounts. 
A)  income statement accounts. 
B)  balance sheet accounts. 
C)  balance sheet and income statement accounts. 
D)  income statement, balance sheet, and retained earnings statement accounts.

Question 4

Closing the dividends account to Retained Earnings is not necessary if net income is greater than dividends during the period.

Accepted Answer

A) True 
 B)False

Question 5

All of the following are stockholders' equity accounts except

Accepted Answer

A)  Dividends. 
B)  Common Stock. 
C)  Investment in Stock. 
D)  Retained Earnings. 
A)  Dividends. 
B)  Common Stock. 
C)  Investment in Stock. 
D)  Retained Earnings.

Question 6

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018:
Accounts payable $ 18,000
Accounts receivable 11,000
Accumulated depreciation - equipment 28,000
Advertising expense 21,000
Cash 15,000
Common stock 42,000
Dividends 14,000
Depreciation expense 12,000
Insurance expense 3,000
Note payable, due 6/30/19 70,000
Prepaid insurance (12-month policy) 6,000
Rent expense 17,000
Retained earnings (1/1/18) 60,000
Salaries and wages expense 32,000
Service revenue 133,000
Supplies 4,000
Supplies expense 6,000
Equipment 210,000
What are total current liabilities at December 31, 2018?

Accepted Answer

A)  $18,000 
B)  $70,000 
C)  $88,000 
D)  $120,000 
A)  $18,000 
B)  $70,000 
C)  $88,000 
D)  $120,000

Question 7

Assets that do not have a physical substance yet often are very valuable are called ______________ assets.

Accepted Answer

The answer of Assets that do not have a physical...

Question 8

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

Accepted Answer

(a) Accounts Receivable-$16,000 ($31,000

Question 9

The purpose of the post-closing trial balance is to

Accepted Answer

A)  prove that no mistakes were made. 
B)  prove the equality of the balance sheet account balances that are carried forward into the next accounting period. 
C)  prove the equality of the income statement account balances that are carried forward into the next accounting period. 
D)  list all the balance sheet accounts in alphabetical order for easy reference. 
A)  prove that no mistakes were made. 
B)  prove the equality of the balance sheet account balances that are carried forward into the next accounting period. 
C)  prove the equality of the income statement account balances that are carried forward into the next accounting period. 
D)  list all the balance sheet accounts in alphabetical order for easy reference.

Question 10

On a classified balance sheet, current assets are customarily listed

Accepted Answer

A)  in alphabetical order. 
B)  with the largest dollar amounts first. 
C)  in the order of liquidity. 
D)  in the order of acquisition. 
A)  in alphabetical order. 
B)  with the largest dollar amounts first. 
C)  in the order of liquidity. 
D)  in the order of acquisition.

Question 11

Equipment is classified in the balance sheet as

Accepted Answer

A)  a current asset. 
B)  property, plant, and equipment. 
C)  an intangible asset. 
D)  a long-term investment. 
A)  a current asset. 
B)  property, plant, and equipment. 
C)  an intangible asset. 
D)  a long-term investment.

Question 12

The accounting cycle begins at the start of a new accounting period.

Accepted Answer

A) True 
 B)False

Question 13

The dividends 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 14

When using a worksheet, adjusting entries are journalized

Accepted Answer

A)  after the worksheet is completed and before financial statements are prepared. 
B)  before the adjustments are entered on to the worksheet. 
C)  after the worksheet is completed and after financial statements have been prepared. 
D)  before the adjusted trial balance is extended to the proper financial statement columns. 
A)  after the worksheet is completed and before financial statements are prepared. 
B)  before the adjustments are entered on to the worksheet. 
C)  after the worksheet is completed and after financial statements have been prepared. 
D)  before the adjusted trial balance is extended to the proper financial statement columns.

Question 15

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 16

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018:   What are total current assets at December 31, 2018?

Accepted Answer

A)  $26,000 
B)  $32,000 
C)  $36,000 
D)  $42,000 
A)  $26,000 
B)  $32,000 
C)  $36,000 
D)  $42,000

Question 17

Income Summary has a credit balance of $17,000 in S. Sufjan Co. after closing revenues and expenses. The entry to close Income Summary is

Accepted Answer

A)  credit Income Summary $17,000, debit Retained Earnings $17,000. 
B)  credit Income Summary $17,000, debit Dividends $17,000. 
C)  debit Income Summary $17,000, credit Dividends $17,000. 
D)  debit Income Summary $17,000, credit Retained Earnings $17,000. 
A)  credit Income Summary $17,000, debit Retained Earnings $17,000. 
B)  credit Income Summary $17,000, debit Dividends $17,000. 
C)  debit Income Summary $17,000, credit Dividends $17,000. 
D)  debit Income Summary $17,000, credit Retained Earnings $17,000.

Question 18

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 19

A correcting entry

Accepted Answer

A)  must involve one balance sheet account and one income statement account. 
B)  is another name for a closing entry. 
C)  may involve any combination of accounts. 
D)  is a required step in the accounting cycle. 
A)  must involve one balance sheet account and one income statement account. 
B)  is another name for a closing entry. 
C)  may involve any combination of accounts. 
D)  is a required step in the accounting cycle.

Question 20

Indicate the worksheet column (income statement Dr., balance sheet Cr., etc.) to which each of the following accounts would be extended.

Accepted Answer

The answer of Indicate the worksheet column (income statement Dr.,...

Exam 4: Completing the Accounting Cycle

Which one of the following is an optional step in the accounting cycle of a business?

Merriweather Post Pavillion received a $820 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $280 and a credit to Service Revenue $280. The correcting entry is

The post-closing trial balance contains only

Closing the dividends account to Retained Earnings is not necessary if net income is greater than dividends during the period.

All of the following are stockholders' equity accounts except

Assets that do not have a physical substance yet often are very valuable are called ______________ assets.

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

The purpose of the post-closing trial balance is to

On a classified balance sheet, current assets are customarily listed

Equipment is classified in the balance sheet as

The accounting cycle begins at the start of a new accounting period.

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

When using a worksheet, adjusting entries are journalized

A post-closing trial balance will show

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018: What are total current assets at December 31, 2018?

Income Summary has a credit balance of $17,000 in S. Sufjan Co. after closing revenues and expenses. The entry to close Income Summary is

A correcting entry

Indicate the worksheet column (income statement Dr., balance sheet Cr., etc.) to which each of the following accounts would be extended.

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

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