Question 1

The most important output of the accounting cycle is the financial statements.

Accepted Answer

A) True 
 B)False

Question 2

You have just accepted your first job out of college, which requires you to evaluate loan requests at Eastwood National Bank. The first loan request you receive is from Richard Enterprises. Richard Tracy, the CEO, is requesting $105,000 and brings you the following trial balance (or statement of accounts) for the first year of operations ended December 31.Which of the following accounts do you think might need to be adjusted before an accurate set of financial statements could be prepared?

Accepted Answer

The following adjustments might be neces

Question 3

Examples of temporary accounts are Supplies and Prepaid Expenses, which are in the ledger for just a short time before they expire.

Accepted Answer

A) True 
 B)False

Question 4

Notes receivable due in 390 days appear on the

Accepted Answer

A) balance sheet in the current assets section 
B) balance sheet in the noncurrent assets section 
C) balance sheet in the current liabilities section 
D) income statement as an expense 
A) balance sheet in the current assets section 
B) balance sheet in the noncurrent assets section 
C) balance sheet in the current liabilities section 
D) income statement as an expense

Question 5

The following data were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30 for Abigail Trucking:   Prepare a classified balance sheet.​

Accepted Answer

The answer of The following data were taken from the...

Question 6

Shores Sports rents canoes and kayaks. Below is the adjusted trial balance at December 31.   The entry required to close the revenue and expense accounts at the end of the period includes a

Accepted Answer

A) debit to Retained Earnings for $4,780 
B) credit to Retained Earnings for $4,780 
C) debit to Retained Earnings for $38,300 
D) credit to Retained Earnings for $38,300 
A) debit to Retained Earnings for $4,780 
B) credit to Retained Earnings for $4,780 
C) debit to Retained Earnings for $38,300 
D) credit to Retained Earnings for $38,300

Question 7

A summary of selected transactions in ledger accounts appears below for Alberto's Plumbing Services for the current calendar year-end.   Net income for the period is

Accepted Answer

A) $25,000 
B) $3,500 
C) $15,000 
D) $21,500 
A) $25,000 
B) $3,500 
C) $15,000 
D) $21,500

Question 8

This question has been removed by Cengage.

Accepted Answer

A) True 
 B)False

Question 9

Match each journal entry that follows with one of the types of journal entries (a-c) below.
-Unearned Revenue 985
Fees Earned 985
A)Journal entries
B)Adjusting journal entries
C)Closing journal entries

Accepted Answer

The answer of Match each journal entry that follows with...

Question 10

After Net Income or Loss is entered on the end-of-period spreadsheet, the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Accepted Answer

A) True 
 B)False

Question 11

Describe a classified balance sheet.

Accepted Answer

A classified balance sheet shows subsect

Question 12

The difference between a classified balance sheet and one that is not classified is that the classified one has subheadings.

Accepted Answer

A) True 
 B)False

Question 13

The current ratio is more useful than working capital in comparing across companies or with industry averages.

Accepted Answer

A) True 
 B)False

Question 14

The following revenue and expense account balances were taken from the Income Statement columns of the end-of-period spreadsheet for Fraser Services Co. for December 31:   Prepare an income statement.

Accepted Answer

The answer of The following revenue and expense account balances...

Question 15

After all of the account balances have been extended to the Balance Sheet columns of the , the totals of the debit and credit columns show debits of $37,686 and credits of $41,101. This indicates that

Accepted Answer

A) neither net income or loss can be calculated because it is found on the income statement 
B) the company has a net loss of $3,415 for the period 
C) the company has a net income of $3,415 for the period 
D) the amounts are out of balance and need to be corrected 
A) neither net income or loss can be calculated because it is found on the income statement 
B) the company has a net loss of $3,415 for the period 
C) the company has a net income of $3,415 for the period 
D) the amounts are out of balance and need to be corrected

Question 16

The statement of stockholders' equity should be prepared

Accepted Answer

A) before the income statement and after the balance sheet 
B) before the income statement and balance sheet 
C) after the income statement and balance sheet 
D) after the income statement and before the balance sheet 
A) before the income statement and after the balance sheet 
B) before the income statement and balance sheet 
C) after the income statement and balance sheet 
D) after the income statement and before the balance sheet

Question 17

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $36,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

Accepted Answer

A) $4,020 net income 
B) $36,755 net loss 
C) $4,020 net loss 
D) $32,735 net income 
A) $4,020 net income 
B) $36,755 net loss 
C) $4,020 net loss 
D) $32,735 net income

Question 18

Match each journal entry that follows with one of the types of journal entries (a-c) below.
-Cash 450
Fees Earned 450
A)Journal entries
B)Adjusting journal entries
C)Closing journal entries

Accepted Answer

The answer of Match each journal entry that follows with...

Question 19

The income statement will present

Accepted Answer

A) revenues less expenses (ordered largest to smallest amount) with miscellaneous expense listed last 
B) revenues less expenses (ordered smallest to largest amounts) with miscellaneous expense listed last 
C) revenues less expenses (ordered in alphabetical order) 
D) revenues less expenses (order is not important) 
A) revenues less expenses (ordered largest to smallest amount) with miscellaneous expense listed last 
B) revenues less expenses (ordered smallest to largest amounts) with miscellaneous expense listed last 
C) revenues less expenses (ordered in alphabetical order) 
D) revenues less expenses (order is not important)

Question 20

Closing entries are entered directly on the end-of-period spreadsheet.

Accepted Answer

A) True 
 B)False

Exam 4: The Accounting Cycle

The most important output of the accounting cycle is the financial statements.

Examples of temporary accounts are Supplies and Prepaid Expenses, which are in the ledger for just a short time before they expire.

Notes receivable due in 390 days appear on the

The following data were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30 for Abigail Trucking: Prepare a classified balance sheet.​

Shores Sports rents canoes and kayaks. Below is the adjusted trial balance at December 31. The entry required to close the revenue and expense accounts at the end of the period includes a

A summary of selected transactions in ledger accounts appears below for Alberto's Plumbing Services for the current calendar year-end. Net income for the period is

This question has been removed by Cengage.

Match each journal entry that follows with one of the types of journal entries (a-c) below. -Unearned Revenue 985 Fees Earned 985 A)Journal entries B)Adjusting journal entries C)Closing journal entries

After Net Income or Loss is entered on the end-of-period spreadsheet, the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Describe a classified balance sheet.

The difference between a classified balance sheet and one that is not classified is that the classified one has subheadings.

The current ratio is more useful than working capital in comparing across companies or with industry averages.

The following revenue and expense account balances were taken from the Income Statement columns of the end-of-period spreadsheet for Fraser Services Co. for December 31: Prepare an income statement.

After all of the account balances have been extended to the Balance Sheet columns of the , the totals of the debit and credit columns show debits of $37,686 and credits of $41,101. This indicates that

The statement of stockholders' equity should be prepared

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $36,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

Match each journal entry that follows with one of the types of journal entries (a-c) below. -Cash 450 Fees Earned 450 A)Journal entries B)Adjusting journal entries C)Closing journal entries

The income statement will present

Closing entries are entered directly on the end-of-period spreadsheet.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Support Department and Joint Cost Allocation

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

The Balanced Scorecard and Corporate Social Responsibility

Investments

Filters

The following data were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30 for Abigail Trucking: Prepare a classified balance sheet.