Question 1

Which of the following is the LAST step of preparing the worksheet?

Accepted Answer

A) Copy the asset, liability, and owners' equity amounts from the adjusted trial balance to the balance sheet columns. Copy the revenue and expense amounts to the Income statement columns. Total each column. 
B) Enter the adjusting entries in the adjustments columns, and total the amounts. 
C) Compute each account's adjusted balance by combining the trial balance and adjustment figures. Enter each account's adjusted amount in the adjusted trial balance columns. 
D) On the Income statement column, calculate profit. Enter profit or loss as the balancing amount on the Income statement and balance sheet columns. Total the Income statement and balance sheet columns. 
A) Copy the asset, liability, and owners' equity amounts from the adjusted trial balance to the balance sheet columns. Copy the revenue and expense amounts to the Income statement columns. Total each column. 
B) Enter the adjusting entries in the adjustments columns, and total the amounts. 
C) Compute each account's adjusted balance by combining the trial balance and adjustment figures. Enter each account's adjusted amount in the adjusted trial balance columns. 
D) On the Income statement column, calculate profit. Enter profit or loss as the balancing amount on the Income statement and balance sheet columns. Total the Income statement and balance sheet columns.

Question 2

Capital is a permanent account.

Accepted Answer

A) True 
 B)False

Question 3

Please refer to the worksheet below. Enter the following adjusting entry into the worksheet:
At year- end, the company owes $180 of salaries to its staff that it has not paid yet.

Accepted Answer

The answer of Please refer to the worksheet below. Enter...

Question 4

Which is NOT an example of a temporary account?

Accepted Answer

A) Wages expense 
B) Service revenue 
C) Accumulated depreciation 
D) Electricity and gas expense 
A) Wages expense 
B) Service revenue 
C) Accumulated depreciation 
D) Electricity and gas expense

Question 5

Profit is entered as the balancing amount in the debit side of the Income statement columns and the credit side of the balance sheet columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 6

Please refer to the worksheet below. Enter the following adjusting entry into the worksheet:
At year- end, the company has earned $2 000 of service revenue from a client, but has not yet completed the job, or received a payment.

Accepted Answer

The answer of Please refer to the worksheet below. Enter...

Question 7

In which of the columns of the worksheet would a loss be found?

Accepted Answer

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

Question 8

Which of the following is NOT a current asset?

Accepted Answer

A) Cash 
B) Accounts receivable 
C) Prepaid insurance 
D) Equipment 
A) Cash 
B) Accounts receivable 
C) Prepaid insurance 
D) Equipment

Question 9

Under which of the following categories would Inventory appear?

Accepted Answer

A) Current assets 
B) Non- current liabilities 
C) Current liabilities 
D) Non- current assets 
A) Current assets 
B) Non- current liabilities 
C) Current liabilities 
D) Non- current assets

Question 10

Supplies is a temporary account.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following do NOT show up on a post- closing trial balance?

Accepted Answer

A) Revenues and expenses 
B) Capital and assets 
C) Capital and liabilities 
D) Assets and liabilities 
A) Revenues and expenses 
B) Capital and assets 
C) Capital and liabilities 
D) Assets and liabilities

Question 12

A current ratio above 2.00 would indicate that a:

Accepted Answer

A) company has $2 of current liabilities for every $1 of current assets. 
B) company has $2 of current assets for every $1 of current liabilities. 
C) company has $2 of total assets for every $1 of current liabilities. 
D) company has $2 of total assets for every dollar of current assets. 
A) company has $2 of current liabilities for every $1 of current assets. 
B) company has $2 of current assets for every $1 of current liabilities. 
C) company has $2 of total assets for every $1 of current liabilities. 
D) company has $2 of total assets for every dollar of current assets.

Question 13

Which of the following does the current ratio measure?

Accepted Answer

A) The company's overall ability to pay liabilities 
B) The company's rate of cash flow 
C) The company's ability to pay current liabilities with current assets 
D) The proportion of the company's assets that are financed with debt 
A) The company's overall ability to pay liabilities 
B) The company's rate of cash flow 
C) The company's ability to pay current liabilities with current assets 
D) The proportion of the company's assets that are financed with debt

Question 14

Salaries payable is a permanent account.

Accepted Answer

A) True 
 B)False

Question 15

The debt ratio measures a company's overall ability to pay its employees.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is TRUE concerning the worksheet?

Accepted Answer

A) The worksheet is a document used to summarise data to prepare the financial statements. 
B) The worksheet is a ledger. 
C) The worksheet is a financial statement. 
D) The worksheet is a journal. 
A) The worksheet is a document used to summarise data to prepare the financial statements. 
B) The worksheet is a ledger. 
C) The worksheet is a financial statement. 
D) The worksheet is a journal.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Which of the following entries will be necessary to close the insurance expense account at the end of the year?

Accepted Answer

A) Debit Capital and credit Insurance expense 
B) Debit Insurance expense and credit Income summary 
C) Debit Income summary and credit Insurance expense 
D) Debit Insurance expense and credit Capital 
A) Debit Capital and credit Insurance expense 
B) Debit Insurance expense and credit Income summary 
C) Debit Income summary and credit Insurance expense 
D) Debit Insurance expense and credit Capital

Question 19

Which of the following measures a company's ability to pay current liabilities with current assets?

Accepted Answer

A) Debt ratio 
B) Profit 
C) Total assets 
D) Current ratio 
A) Debt ratio 
B) Profit 
C) Total assets 
D) Current ratio

Question 20

A company has $45 600 in Current assets; $111 320 in Total assets; $67 500 in Current liabilities and $188 400 in Total liabilities. The company has a current ratio of:

Accepted Answer

A) 0.68. 
B) 0.59. 
C) 0.24. 
D) 1.48. 
A) 0.68. 
B) 0.59. 
C) 0.24. 
D) 1.48.

Exam 4: Completing the Accounting Cycle

Which of the following is the LAST step of preparing the worksheet?

Capital is a permanent account.

Please refer to the worksheet below. Enter the following adjusting entry into the worksheet: At year- end, the company owes $180 of salaries to its staff that it has not paid yet.

Which is NOT an example of a temporary account?

Profit is entered as the balancing amount in the debit side of the Income statement columns and the credit side of the balance sheet columns of the worksheet.

Please refer to the worksheet below. Enter the following adjusting entry into the worksheet: At year- end, the company has earned $2 000 of service revenue from a client, but has not yet completed the job, or received a payment.

In which of the columns of the worksheet would a loss be found?

Which of the following is NOT a current asset?

Under which of the following categories would Inventory appear?

Supplies is a temporary account.

Which of the following do NOT show up on a post- closing trial balance?

A current ratio above 2.00 would indicate that a:

Which of the following does the current ratio measure?

Salaries payable is a permanent account.

The debt ratio measures a company's overall ability to pay its employees.

Which of the following statements is TRUE concerning the worksheet?

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

Which of the following entries will be necessary to close the insurance expense account at the end of the year?

Which of the following measures a company's ability to pay current liabilities with current assets?

A company has $45 600 in Current assets; $111 320 in Total assets; $67 500 in Current liabilities and $188 400 in Total liabilities. The company has a current ratio of:

The Role of Accounting in Business

Recording Business Transactions

The Adjusting Process

Retailing Operations

Retail Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Non-Current Assets: Property, Plant and Equipment, and Intangibles

Current Liabilities and Payroll

Non-Current Liabilities, Debentures Payable and Classification of Liabilities on the Balance Sheet

Partnerships

Companies: Share Capital and the Balance Sheet

Companies: Effects on Retained Earnings, Share Splits and Buy-Backs, and the Income Statement

The Cash Flow Statement

The Framework of Accounting

Financial Statement Analysis

Introduction to Managerial Accounting and the Master Budget

Job Costing

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

Appendix

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