Question 1

Assets with no physical form are called ________.

Accepted Answer

A)  current assets 
B)  intangible assets 
C)  long-term investments 
D)  mortgaged investments 
A)  current assets 
B)  intangible assets 
C)  long-term investments 
D)  mortgaged investments

Question 2

Generally Accepted Accounting Principles (GAAP) require every organization to prepare reversing entries.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following are NOT included in a post-closing trial balance?

Accepted Answer

A)  Assets and liabilities 
B)  Owner, Capital and assets 
C)  Common Stock and liabilities 
D)  Revenues and expenses 
A)  Assets and liabilities 
B)  Owner, Capital and assets 
C)  Common Stock and liabilities 
D)  Revenues and expenses

Question 4

Emerald Company earned revenues of $69,000 and incurred expenses of $77,000. No dividends were declared. Which of the following statements is correct?

Accepted Answer

A)  The entry to close Income Summary is the same regardless of a net income or a net loss. 
B)  Owner, Capital will be debited for $8,000 and Income Summary will be credited for $8,000. 
C)  The entries to close revenues and expenses will differ if there is a net loss. 
D)  The entry to close Income Summary requires a debit to the Income Summary account. 
A)  The entry to close Income Summary is the same regardless of a net income or a net loss. 
B)  Owner, Capital will be debited for $8,000 and Income Summary will be credited for $8,000. 
C)  The entries to close revenues and expenses will differ if there is a net loss. 
D)  The entry to close Income Summary requires a debit to the Income Summary account.

Question 5

The following is the adjusted trial balance as of December 31, 2017 of Martin Watch Company:   Provide the closing entry for revenues.

Accepted Answer

The answer of The following is the adjusted trial balance...

Question 6

The following is the adjusted trial balance as of December 31, 2017 of Peri Brothers Co.:   Provide the closing entry for expenses.

Accepted Answer

The answer of The following is the adjusted trial balance...

Question 7

Where does net income appear on a worksheet?

Accepted Answer

A)  Net income appears only in the income statement debit column. 
B)  Net income appears in the balance sheet credit column and in the income statement debit column. 
C)  Net income appears in the income statement credit column and in the balance sheet debit column. 
D)  Net income appears only in the balance sheet credit column. 
A)  Net income appears only in the income statement debit column. 
B)  Net income appears in the balance sheet credit column and in the income statement debit column. 
C)  Net income appears in the income statement credit column and in the balance sheet debit column. 
D)  Net income appears only in the balance sheet credit column.

Question 8

A current ratio that has increased from the prior period indicates an improvement in the company's ability to pay its current debts.

Accepted Answer

A) True 
 B)False

Question 9

A list of the accounts and their balances at the end of the period, after journalizing and posting the closing entries, is called ________.

Accepted Answer

A)  chart of accounts 
B)  adjusted trial balance 
C)  post-closing trial balance 
D)  pre-closing balance sheet 
A)  chart of accounts 
B)  adjusted trial balance 
C)  post-closing trial balance 
D)  pre-closing balance sheet

Question 10

The balances of select accounts of McCarthy 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. Interest Payable will be paid on February 5, 2017. What are the total long-term liabilities shown on the balance sheet?

Accepted Answer

A)  $1,300 
B)  $5,000 
C)  $5,400 
D)  $21,000 
A)  $1,300 
B)  $5,000 
C)  $5,400 
D)  $21,000

Question 11

Maywood Company has a current ratio of 6.00. This indicates that the company has $6 in ________.

Accepted Answer

A)  current liabilities for every $1 of current assets 
B)  total assets for every $1 of current liabilities 
C)  current assets for every $1 of current liabilities 
D)  total assets for every $1 of current assets 
A)  current liabilities for every $1 of current assets 
B)  total assets for every $1 of current liabilities 
C)  current assets for every $1 of current liabilities 
D)  total assets for every $1 of current assets

Question 12

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

Accepted Answer

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

Question 13

In which of the columns of the worksheet would Net Income be found?

Accepted Answer

A)  the unadjusted trial balance credit column, the adjusted trial balance credit column, and the balance sheet credit column 
B)  the unadjusted trial balance debit column, the adjusted trial balance debit column, and the balance sheet debit column 
C)  the balance sheet debit column and the income statement credit column 
D)  the balance sheet credit column and the income statement debit column 
A)  the unadjusted trial balance credit column, the adjusted trial balance credit column, and the balance sheet credit column 
B)  the unadjusted trial balance debit column, the adjusted trial balance debit column, and the balance sheet debit column 
C)  the balance sheet debit column and the income statement credit column 
D)  the balance sheet credit column and the income statement debit column

Question 14

All assets that will not be converted to cash or used up within the business's operating cycle or one year, whichever is greater, are called ________.

Accepted Answer

A)  long-term assets 
B)  fully depreciated assets 
C)  current assets 
D)  current liabilities 
A)  long-term assets 
B)  fully depreciated assets 
C)  current assets 
D)  current liabilities

Question 15

The process by which companies produce their financial statements for a specific period is called the ________.

Accepted Answer

A)  operating cycle 
B)  closing process 
C)  opening process 
D)  accounting cycle 
A)  operating cycle 
B)  closing process 
C)  opening process 
D)  accounting cycle

Question 16

Only temporary accounts appear on the post-closing trial balance.

Accepted Answer

A) True 
 B)False

Question 17

List the steps of the accounting cycle that take place at the end of the period.

Accepted Answer

Step 4. Compute the unadjusted balance i

Question 18

The Salaries Expense account is a temporary account.

Accepted Answer

A) True 
 B)False

Question 19

The beginning balance in the Owner, Capital account of a company was $12,000. The revenues and expenses were $240,000 and $140,000, respectively. During the year, the owner made withdrawals of $6,000. The ending balance in Owner, Capital was $112,000. (Assume the owner made no new contributions during the year.)

Accepted Answer

A) True 
 B)False

Question 20

The financial statements are prepared from the ________.

Accepted Answer

A)  adjusted trial balance 
B)  chart of accounts 
C)  statement of retained earnings 
D)  unadjusted trial balance 
A)  adjusted trial balance 
B)  chart of accounts 
C)  statement of retained earnings 
D)  unadjusted trial balance

Assets with no physical form are called ________.

Generally Accepted Accounting Principles (GAAP) require every organization to prepare reversing entries.

Which of the following are NOT included in a post-closing trial balance?

Emerald Company earned revenues of $69,000 and incurred expenses of $77,000. No dividends were declared. Which of the following statements is correct?

The following is the adjusted trial balance as of December 31, 2017 of Martin Watch Company: Provide the closing entry for revenues.

The following is the adjusted trial balance as of December 31, 2017 of Peri Brothers Co.: Provide the closing entry for expenses.

Where does net income appear on a worksheet?

A current ratio that has increased from the prior period indicates an improvement in the company's ability to pay its current debts.

A list of the accounts and their balances at the end of the period, after journalizing and posting the closing entries, is called ________.

Maywood Company has a current ratio of 6.00. This indicates that the company has $6 in ________.

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

In which of the columns of the worksheet would Net Income be found?

All assets that will not be converted to cash or used up within the business's operating cycle or one year, whichever is greater, are called ________.

The process by which companies produce their financial statements for a specific period is called the ________.

Only temporary accounts appear on the post-closing trial balance.

List the steps of the accounting cycle that take place at the end of the period.

The Salaries Expense account is a temporary account.

The financial statements are prepared from the ________.

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

Assets with no physical form are called ________.

Generally Accepted Accounting Principles (GAAP) require every organization to prepare reversing entries.

Which of the following are NOT included in a post-closing trial balance?

Emerald Company earned revenues of $69,000 and incurred expenses of $77,000. No dividends were declared. Which of the following statements is correct?

The following is the adjusted trial balance as of December 31, 2017 of Martin Watch Company: Provide the closing entry for revenues.

The following is the adjusted trial balance as of December 31, 2017 of Peri Brothers Co.: Provide the closing entry for expenses.

Where does net income appear on a worksheet?

A current ratio that has increased from the prior period indicates an improvement in the company's ability to pay its current debts.

A list of the accounts and their balances at the end of the period, after journalizing and posting the closing entries, is called ________.

Maywood Company has a current ratio of 6.00. This indicates that the company has $6 in ________.

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

In which of the columns of the worksheet would Net Income be found?

All assets that will not be converted to cash or used up within the business's operating cycle or one year, whichever is greater, are called ________.

The process by which companies produce their financial statements for a specific period is called the ________.

Only temporary accounts appear on the post-closing trial balance.

List the steps of the accounting cycle that take place at the end of the period.

The Salaries Expense account is a temporary account.

The financial statements are prepared from the ________.

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