Exam 4: Completion of the Accounting Cycle

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If the total debits exceed total credits in the balance sheet columns of the work sheet, owner's equity

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After the closing entries are posted to the accounts, a trial balance will show balances only in the Balance Sheet Accounts.

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Which of the following would NOT affect the acid-test ratio?

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The Singh Company paid $630 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $360 and a credit to Accounts Receivable, $360. The correcting entry is The Singh Company paid $630 on account to a creditor. The transaction was erroneously recorded as a debit to Cash of $360 and a credit to Accounts Receivable, $360. The correcting entry is

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A post-closing trial balance will show

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A liability is classified as a current liability if it is to be settled within one year from the balance sheet date or in the company's normal operating cycle.

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Under International Financial Reporting Standards, current assets may be shown after non current assets on the Balance Sheet.

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In order to close a revenue account, the

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Match the items below by entering the appropriate code letter in the space provided.
A temporary account used to close revenues and expenses
Income summary
Entries to correct errors made in recording transactions
Permanent accounts
Balance sheet accounts whose balances are carried forward to the next period
Non-current liabilities
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A temporary account used to close revenues and expenses
Income summary
Entries to correct errors made in recording transactions
Permanent accounts
Balance sheet accounts whose balances are carried forward to the next period
Non-current liabilities
Resources that are expected to be realized in cash, sold, or consumed within one year of the balance sheet
Share capital
The exact opposite of an adjusting entry made in a previous period
Correcting entries
Obligations expected to be paid after one year
Closing entries
A temporary account used to account for owner withdrawals
Current assets
An optional tool that facilitates the preparation of financial statements
Drawings
Entries at the end of an accounting period to transfer the balances of temporary accounts to a permanent owner's equity account
Reversing entry
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Abbott Manufacturing Company's current ratio is 2:1. The company has $50,000 in current liabilities; current assets must be $25,000.

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Which of the following steps in the accounting cycle would NOT generally be performed daily?

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