Question 1

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts.

Accepted Answer

A) True 
 B)False  False

Question 2

The permanent accounts-assets, liabilities, and stockholders' equity-are closed to the Owner, Capital account.

Accepted Answer

A) True 
 B)False  False

Question 3

In an accounting cycle, which of the following steps takes place only at the end of the accounting period?

Accepted Answer

A)  start with the beginning account balances 
B)  journalize transactions that occur 
C)  analyze transactions as they occur 
D)  journalize adjusting entries 
A)  start with the beginning account balances 
B)  journalize transactions that occur 
C)  analyze transactions as they occur 
D)  journalize adjusting entries D

Question 4

The closing process helps in measuring each period's net income separately from all other periods.

Accepted Answer

A) True 
 B)False

Question 5

The following contains information from the records of the Balfor Architecture Firm. Balfor Architecture Firm
Selected Financial Information
December 31, 2017   Which of the following statements is an accurate interpretation of the current ratio of Balfor Architecture Firm? (Round your answer to two decimals.)

Accepted Answer

A)  The company has $2.19 of current assets for every $1.00 of liabilities. 
B)  The company has $1.90 of current assets for every $1.00 of current liabilities. 
C)  The company has $1.51 of current assets for every $1.00 of liabilities. 
D)  The company has $0.61 of current assets for every $1.00 of current liabilities. 
A)  The company has $2.19 of current assets for every $1.00 of liabilities. 
B)  The company has $1.90 of current assets for every $1.00 of current liabilities. 
C)  The company has $1.51 of current assets for every $1.00 of liabilities. 
D)  The company has $0.61 of current assets for every $1.00 of current liabilities.

Question 6

The ending balances in the Owner, Capital and Owner, Withdrawals accounts are shown on the income statement columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 7

The financial statement that reports assets, liabilities, and stockholders' equity as of the last day of the period is called the ________.

Accepted Answer

A)  income statement 
B)  statement of owner's equity 
C)  balance sheet 
D)  unadjusted trial balance 
A)  income statement 
B)  statement of owner's equity 
C)  balance sheet 
D)  unadjusted trial balance

Question 8

Which of the following statements is true if the income statement credit column exceeds the income statement debit column on a worksheet?

Accepted Answer

A)  The company made a net profit. 
B)  The company incurred a net loss. 
C)  The owner's capital account decreased during the period. 
D)  An error was made. 
A)  The company made a net profit. 
B)  The company incurred a net loss. 
C)  The owner's capital account decreased during the period. 
D)  An error was made.

Question 9

Which of the following is true of a completed worksheet?

Accepted Answer

A)  The total debits in the unadjusted trial balance column equal the total debits in the adjusted trial balance column. 
B)  The total debits in the income statement column equal the total credits in the balance sheet column. 
C)  The total debits in the income statement column equal the total debits in the balance sheet column. 
D)  The total of all the debit columns is equal to the total of all the credit columns. 
A)  The total debits in the unadjusted trial balance column equal the total debits in the adjusted trial balance column. 
B)  The total debits in the income statement column equal the total credits in the balance sheet column. 
C)  The total debits in the income statement column equal the total debits in the balance sheet column. 
D)  The total of all the debit columns is equal to the total of all the credit columns.

Question 10

Closing entries are journalized and posted ________.

Accepted Answer

A)  throughout the accounting period 
B)  before posting the adjusting entries 
C)  after preparing the post-closing trial balance 
D)  after preparing the financial statements 
A)  throughout the accounting period 
B)  before posting the adjusting entries 
C)  after preparing the post-closing trial balance 
D)  after preparing the financial statements

Question 11

List the order in which the balance sheet, statement of owner's equity and income statement are prepared. Briefly discuss why this order is necessary.

Accepted Answer

The order in which these statements are

Question 12

Which of the following is a measure of how quickly an item can be converted to cash?

Accepted Answer

A)  Debt ratio 
B)  Current ratio 
C)  Liquidity 
D)  Accounting cycle 
A)  Debt ratio 
B)  Current ratio 
C)  Liquidity 
D)  Accounting cycle

Question 13

Which of the following accounts will be closed by debiting the Income Summary account?

Accepted Answer

A)  Owner, Capital 
B)  Service Revenue 
C)  Accounts Receivable 
D)  Salaries Expense 
A)  Owner, Capital 
B)  Service Revenue 
C)  Accounts Receivable 
D)  Salaries Expense

Question 14

Net income (loss) is the difference between the total debits and the total credits in the income statement columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 15

The balances of select accounts of Janet Company as of December 31, 2016 are given below:   The Unearned Revenue is the amount of cash received for services to be rendered in January, 2017. The Interest Payable is due on February 15, 2017. What are the total current liabilities shown on the balance sheet?

Accepted Answer

A)  $5,400 
B)  $11,300 
C)  $13,700 
D)  $12,400 
A)  $5,400 
B)  $11,300 
C)  $13,700 
D)  $12,400

Question 16

The Salaries Payable account is a permanent account.

Accepted Answer

A) True 
 B)False

Question 17

Adjusting journal entries are prepared ________.

Accepted Answer

A)  after preparing the adjusted trial balance 
B)  after preparing the unadjusted trial balance 
C)  after posting the closing entries 
D)  after preparing the financial statements 
A)  after preparing the adjusted trial balance 
B)  after preparing the unadjusted trial balance 
C)  after posting the closing entries 
D)  after preparing the financial statements

Question 18

Which of the following categories of accounts are temporary accounts that are closed at the end of the year?

Accepted Answer

A)  assets, liabilities, and owner's withdrawals 
B)  revenues, expenses, and owner's withdrawals 
C)  assets, liabilities, and owner's equity 
D)  revenues, expenses, and owner's equity 
A)  assets, liabilities, and owner's withdrawals 
B)  revenues, expenses, and owner's withdrawals 
C)  assets, liabilities, and owner's equity 
D)  revenues, expenses, and owner's equity

Question 19

On December 31, 2016, Axle Services Company prepared the following accrual adjustment:   Axle uses reversing entries. Prepare the reversing entry that would be prepared on January 1, 2017.

Accepted Answer

The answer of On December 31, 2016, Axle Services Company...

Question 20

The Owner, Capital account is a temporary account.

Accepted Answer

A) True 
 B)False

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts.

The permanent accounts-assets, liabilities, and stockholders' equity-are closed to the Owner, Capital account.

In an accounting cycle, which of the following steps takes place only at the end of the accounting period?

The closing process helps in measuring each period's net income separately from all other periods.

The ending balances in the Owner, Capital and Owner, Withdrawals accounts are shown on the income statement columns of the worksheet.

The financial statement that reports assets, liabilities, and stockholders' equity as of the last day of the period is called the ________.

Which of the following statements is true if the income statement credit column exceeds the income statement debit column on a worksheet?

Which of the following is true of a completed worksheet?

Closing entries are journalized and posted ________.

List the order in which the balance sheet, statement of owner's equity and income statement are prepared. Briefly discuss why this order is necessary.

Which of the following is a measure of how quickly an item can be converted to cash?

Which of the following accounts will be closed by debiting the Income Summary account?

Net income (loss) is the difference between the total debits and the total credits in the income statement columns of the worksheet.

The Salaries Payable account is a permanent account.

Adjusting journal entries are prepared ________.

Which of the following categories of accounts are temporary accounts that are closed at the end of the year?

On December 31, 2016, Axle Services Company prepared the following accrual adjustment: Axle uses reversing entries. Prepare the reversing entry that would be prepared on January 1, 2017.

The Owner, Capital account is a temporary account.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

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Exam 4: Completing the Accounting Cycle

The balance sheet section of the worksheet includes the asset and liability accounts and all equity accounts.

The permanent accounts-assets, liabilities, and stockholders' equity-are closed to the Owner, Capital account.

In an accounting cycle, which of the following steps takes place only at the end of the accounting period?

The closing process helps in measuring each period's net income separately from all other periods.

The ending balances in the Owner, Capital and Owner, Withdrawals accounts are shown on the income statement columns of the worksheet.

The financial statement that reports assets, liabilities, and stockholders' equity as of the last day of the period is called the ________.

Which of the following statements is true if the income statement credit column exceeds the income statement debit column on a worksheet?

Which of the following is true of a completed worksheet?

Closing entries are journalized and posted ________.

List the order in which the balance sheet, statement of owner's equity and income statement are prepared. Briefly discuss why this order is necessary.

Which of the following is a measure of how quickly an item can be converted to cash?

Which of the following accounts will be closed by debiting the Income Summary account?

Net income (loss) is the difference between the total debits and the total credits in the income statement columns of the worksheet.

The Salaries Payable account is a permanent account.

Adjusting journal entries are prepared ________.

Which of the following categories of accounts are temporary accounts that are closed at the end of the year?

On December 31, 2016, Axle Services Company prepared the following accrual adjustment: Axle uses reversing entries. Prepare the reversing entry that would be prepared on January 1, 2017.

The Owner, Capital account is a temporary account.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Filters