Question 1

Reversing entries are used to reverse two type of adjusting entries:

Accepted Answer

A)  accrued revenue and unearned revenues. 
B)  prepayments and unearned revenues. 
C)  accrued revenue and expenses. 
D)  prepayments and accrued expenses. 
A)  accrued revenue and unearned revenues. 
B)  prepayments and unearned revenues. 
C)  accrued revenue and expenses. 
D)  prepayments and accrued expenses.

Question 2

Drawings will appear in the balance sheet debit column of a work sheet.

Accepted Answer

A) True 
 B)False

Question 3

Closing entries are journalized in the

Accepted Answer

A)  trial balance. 
B)  general journal. 
C)  general ledger. 
D)  chart of accounts. 
A)  trial balance. 
B)  general journal. 
C)  general ledger. 
D)  chart of accounts.

Question 4

The work sheet for the Plateo Rental Company appears below.
Adjustment data:
a. Prepaid rent expired during August, $2.
b. Depreciation expense on office equipment for the month of August, $8.
c. Supplies on hand on August 31 amounted to $6.
d. Salaries expense incurred at August 31 but not yet paid amounted to $12.
   
Instructions
Using the adjustment data, complete the work sheet. Add any accounts that are necessary.

Accepted Answer

The answer of The work sheet for the Plateo Rental...

Question 5

When is a post-closing trial balance prepared?

Accepted Answer

A)  when reversing entries are required 
B)  after adjusting entries but before closing entries 
C)  after both adjusting and closing entries have been posted 
D)  after the balance sheet has been prepared 
A)  when reversing entries are required 
B)  after adjusting entries but before closing entries 
C)  after both adjusting and closing entries have been posted 
D)  after the balance sheet has been prepared

Question 6

The work sheet does NOT show

Accepted Answer

A)  profit or loss for the period. 
B)  revenue and expense account balances. 
C)  the ending balance in the owner's capital account. 
D)  the trial balance before adjustments. 
A)  profit or loss for the period. 
B)  revenue and expense account balances. 
C)  the ending balance in the owner's capital account. 
D)  the trial balance before adjustments.

Question 7

Liabilities are generally classified on a balance sheet as

Accepted Answer

A)  small liabilities and large liabilities. 
B)  present liabilities and future liabilities. 
C)  tangible liabilities and intangible liabilities. 
D)  current liabilities and non-current liabilities. 
A)  small liabilities and large liabilities. 
B)  present liabilities and future liabilities. 
C)  tangible liabilities and intangible liabilities. 
D)  current liabilities and non-current liabilities.

Question 8

The current ratio should be interpreted by considering all but

Accepted Answer

A)  general economic and industry conditions. 
B)  other special financial information. 
C)  other firms in the same or related industry. 
D)  other firms in unrelated industries. 
A)  general economic and industry conditions. 
B)  other special financial information. 
C)  other firms in the same or related industry. 
D)  other firms in unrelated industries.

Question 9

The owner's drawings account is a permanent account whose balance is carried forward to the next accounting period.

Accepted Answer

A) True 
 B)False

Question 10

The following data are taken from the financial statements of Prone Company as of the end of the year 2013. The data are in alphabetical order.   Instructions 
a. Calculate Prone Company's working capital, current ratio, and acid-test ratio.
b. Explain what additional information you would require in order to use the three measures to evaluate Prone's liquidity.

Accepted Answer

a. Working capital = Current assets - Cu

Question 11

The current portion of a long-term liability is reported on the balance sheet as a

Accepted Answer

A)  deferred interest expense. 
B)  current asset. 
C)  current liability. 
D)  non-current liability. 
A)  deferred interest expense. 
B)  current asset. 
C)  current liability. 
D)  non-current liability.

Question 12

When preparing a worksheet, the profit (or loss) for the period

Accepted Answer

A)  is found by calculating the difference between the income statement credit column and the balance sheet credit column on the work sheet. 
B)  cannot be found on the work sheet. 
C)  is found by calculating the difference between the income statement column totals of the work sheet. 
D)  is found by calculating the difference between the trial balance totals and the adjusted trial balance totals. 
A)  is found by calculating the difference between the income statement credit column and the balance sheet credit column on the work sheet. 
B)  cannot be found on the work sheet. 
C)  is found by calculating the difference between the income statement column totals of the work sheet. 
D)  is found by calculating the difference between the trial balance totals and the adjusted trial balance totals.

Question 13

The heading for a post-closing trial balance has a date line that is similar to the one found on

Accepted Answer

A)  a balance sheet. 
B)  an income statement. 
C)  a statement of owner's equity. 
D)  the work sheet. 
A)  a balance sheet. 
B)  an income statement. 
C)  a statement of owner's equity. 
D)  the work sheet.

Question 14

Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure.

Accepted Answer

A) True 
 B)False

Question 15

The difference between current assets and current liabilities is called working capital.

Accepted Answer

A) True 
 B)False

Question 16

On August 31, 2014 selected accounts of Grand Falls Potatoes, after all year end adjusting entries, show the following data:   Analysis indicates that adjusting entries were made for
1. $8,000 of commission revenue earned but not billed,
2. $2,500 of accrued but interest not received, and
3. $1,600 of telephone expense accrued but not paid.
Instructions
a. Prepare the closing entries at August 31, 2014.
b. Prepare the reversing entries on September 1, 2014.
c. Prepare the entries to record (1) the collection of the accrued commission on September 15, (2) payment of the telephone bill on September 10, and (3) receipt of all the interest due ($4,200) on September 15.
d. What is the interest revenue for the month of September 2014?

Accepted Answer

The answer of On August 31, 2014 selected accounts of...

Question 17

The balance of the Depreciation Expense account will appear in the income statement debit column of a work sheet.

Accepted Answer

A) True 
 B)False

Question 18

A post-closing trial balance will show

Accepted Answer

A)  only permanent account balances. 
B)  only temporary account balances. 
C)  zero balances for all accounts. 
D)  the amount of profit (or loss) for the period. 
A)  only permanent account balances. 
B)  only temporary account balances. 
C)  zero balances for all accounts. 
D)  the amount of profit (or loss) for the period.

Question 19

Match between columns
                        Premises: Prepare financial statements;
Prepare an unadjusted trial balance
Prepare a post closing trial balance
Analyze business transactions
Post to general ledger accounts
Journalize and post closing entries
Prepare a trial balance
Journalize and post adjusting entries; Prepayments/ Accruals
Journalize the transaction

Accepted Answer

The Answer of periodically and daily and annually is...

Question 20

Closing entries are necessary if the business plans to continue operating in the future and issue financial statements each year.

Accepted Answer

A) True 
 B)False

Reversing entries are used to reverse two type of adjusting entries:

Drawings will appear in the balance sheet debit column of a work sheet.

Closing entries are journalized in the

When is a post-closing trial balance prepared?

The work sheet does NOT show

Liabilities are generally classified on a balance sheet as

The current ratio should be interpreted by considering all but

The owner's drawings account is a permanent account whose balance is carried forward to the next accounting period.

The current portion of a long-term liability is reported on the balance sheet as a

When preparing a worksheet, the profit (or loss) for the period

The heading for a post-closing trial balance has a date line that is similar to the one found on

Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure.

The difference between current assets and current liabilities is called working capital.

The balance of the Depreciation Expense account will appear in the income statement debit column of a work sheet.

A post-closing trial balance will show

Closing entries are necessary if the business plans to continue operating in the future and issue financial statements each year.

Accounting in Action

The Recording Process

Adjusting the Accounts

Accounting for Merchandising Operations

Inventory Costing

Internal Control and Cash

Long-Lived Assets

Current Liabilities

Accounting Principles

Accounting for Partnerships

Introduction to Corporations

Corporations: Additional Topics and Ifrs

Non-Current Liabilities

The Cash Flow Statement

Financial Statement Analysis

Investments

Filters

Exam 4: Completion of the Accounting Cycle

Reversing entries are used to reverse two type of adjusting entries:

Drawings will appear in the balance sheet debit column of a work sheet.

Closing entries are journalized in the

When is a post-closing trial balance prepared?

The work sheet does NOT show

Liabilities are generally classified on a balance sheet as

The current ratio should be interpreted by considering all but

The owner's drawings account is a permanent account whose balance is carried forward to the next accounting period.

The current portion of a long-term liability is reported on the balance sheet as a

When preparing a worksheet, the profit (or loss) for the period

The heading for a post-closing trial balance has a date line that is similar to the one found on

Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure.

The difference between current assets and current liabilities is called working capital.

The balance of the Depreciation Expense account will appear in the income statement debit column of a work sheet.

A post-closing trial balance will show

Closing entries are necessary if the business plans to continue operating in the future and issue financial statements each year.

Accounting in Action

The Recording Process

Adjusting the Accounts

Accounting for Merchandising Operations

Inventory Costing

Internal Control and Cash

Long-Lived Assets

Current Liabilities

Accounting Principles

Accounting for Partnerships

Introduction to Corporations

Corporations: Additional Topics and Ifrs

Non-Current Liabilities

The Cash Flow Statement

Financial Statement Analysis

Investments

Filters