Question 1

The entry to close Income Summary to Retained Earnings includes

Accepted Answer

A) a debit to Revenue for ₤7,000. 
B) credits to Expenses totalling ₤3,600. 
C) a credit to Income Summary for ₤3,400 
D) a credit to Retained Earnings for ₤3,400. 
A) a debit to Revenue for ₤7,000. 
B) credits to Expenses totalling ₤3,600. 
C) a credit to Income Summary for ₤3,400 
D) a credit to Retained Earnings for ₤3,400. D

Question 2

The following information (in thousands) is for Zháng Office Supplies:
 
The total dollar amount of liabilities to be classified as current liabilities is

Accepted Answer

A)  ¥ 70,000 
B)  ¥ 60,000 
C)  ¥ 150,000 
D)  ¥ 160,000 
A)  ¥ 70,000 
B)  ¥ 60,000 
C)  ¥ 150,000 
D)  ¥ 160,000 A

Question 3

The Statement of Financial Position columns of the worksheet contain data for what financial statement?

Accepted Answer

A) Income Statement. 
B) Retained Earnings Statement. 
C) Statement of Cash Flows. 
D) None. 
A) Income Statement. 
B) Retained Earnings Statement. 
C) Statement of Cash Flows. 
D) None. B

Question 4

A post-closing trial balance is prepared

Accepted Answer

A) after closing entries have been journalized and posted. 
B) before closing entries have been journalized and posted. 
C) after closing entries have been journalized but before the entries are posted. 
D) before closing entries have been journalized but after the entries are posted. 
A) after closing entries have been journalized and posted. 
B) before closing entries have been journalized and posted. 
C) after closing entries have been journalized but before the entries are posted. 
D) before closing entries have been journalized but after the entries are posted.

Question 5

It is not necessary to prepare formal financial statements if a worksheet has been prepared because financial position and net income are shown on the worksheet.

Accepted Answer

A) True 
 B)False

Question 6

After the adjusting entries are journalized and posted to the accounts in the general ledger, the balance of each account should agree with the balance shown on the

Accepted Answer

A) adjusted trial balance. 
B) post-closing trial balance. 
C) the general journal. 
D) adjustments columns of the worksheet. 
A) adjusted trial balance. 
B) post-closing trial balance. 
C) the general journal. 
D) adjustments columns of the worksheet.

Question 7

Statement of financial position accounts are considered to be

Accepted Answer

A) temporary owner's equity accounts. 
B) permanent accounts. 
C) capital accounts. 
D) nominal accounts. 
A) temporary owner's equity accounts. 
B) permanent accounts. 
C) capital accounts. 
D) nominal accounts.

Question 8

The operating cycle of a company is determined by the number of years the company has been operating.

Accepted Answer

A) True 
 B)False

Question 9

To close net income to Retained Earnings Income Summary is debited and Retained Earnings is credited.

Accepted Answer

A) True 
 B)False

Question 10

A post-closing trial balance will show

Accepted Answer

A) zero balances for all accounts. 
B) zero balances for statement of financial position accounts. 
C) only statement of financial position accounts. 
D) only income statement accounts. 
A) zero balances for all accounts. 
B) zero balances for statement of financial position accounts. 
C) only statement of financial position accounts. 
D) only income statement accounts.

Question 11

Which of the following depicts the proper sequence of steps in the accounting cycle?

Accepted Answer

A) Journalize the transactions, analyze business transactions, prepare a trial balance 
B) Prepare a trial balance, prepare financial statements, prepare adjusting entries 
C) Prepare a trial balance, prepare adjusting entries, prepare financial statements 
D) Prepare a trial balance, post to ledger accounts, post adjusting entries 
A) Journalize the transactions, analyze business transactions, prepare a trial balance 
B) Prepare a trial balance, prepare financial statements, prepare adjusting entries 
C) Prepare a trial balance, prepare adjusting entries, prepare financial statements 
D) Prepare a trial balance, post to ledger accounts, post adjusting entries

Question 12

The total dollar amount of assets to be classified as property, plant, and equipment is

Accepted Answer

A) ¥320,000. 
B) ¥170,000. 
C) ¥245,000. 
D) ¥190,000. 
A) ¥320,000. 
B) ¥170,000. 
C) ¥245,000. 
D) ¥190,000.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The net income (or loss) for the period

Accepted Answer

A) is found by computing the difference between the income statement credit column and the statement of financial position credit column on the worksheet. 
B) cannot be found on the worksheet. 
C) is found by computing the difference between the income statement columns of the worksheet. 
D) is found by computing the difference between the trial balance totals and the adjusted trial balance totals. 
A) is found by computing the difference between the income statement credit column and the statement of financial position credit column on the worksheet. 
B) cannot be found on the worksheet. 
C) is found by computing the difference between the income statement columns of the worksheet. 
D) is found by computing the difference between the trial balance totals and the adjusted trial balance totals.

Question 15

Which one of the following statements concerning the accounting cycle is incorrect?

Accepted Answer

A) The accounting cycle includes journalizing transactions and posting to ledger accounts. 
B) The accounting cycle includes only one optional step. 
C) The steps in the accounting cycle are performed in sequence. 
D) The steps in the accounting cycle are repeated in each accounting period. 
A) The accounting cycle includes journalizing transactions and posting to ledger accounts. 
B) The accounting cycle includes only one optional step. 
C) The steps in the accounting cycle are performed in sequence. 
D) The steps in the accounting cycle are repeated in each accounting period.

Question 16

The first required step in the accounting cycle is

Accepted Answer

A) reversing entries. 
B) journalizing transactions in the book of original entry. 
C) analyzing transactions. 
D) posting transactions. 
A) reversing entries. 
B) journalizing transactions in the book of original entry. 
C) analyzing transactions. 
D) posting transactions.

Question 17

A liability is classified as a current liability if the company is to pay it within the forthcoming year.

Accepted Answer

A) True 
 B)False

Question 18

On September 23, Riley Company received a $350 check from Jack Colaw for services to be performed in the future.The bookkeeper for Riley Company incorrectly debited Cash for $350 and credited Accounts Receivable for $350.The amounts have been posted to the ledger.To correct this entry, the bookkeeper should

Accepted Answer

A) debit Cash $350 and credit Unearned Service Revenue $350. 
B) debit Accounts Receivable $350 and credit Unearned Service Revenue $350. 
C) debit Accounts Receivable $350 and credit Cash $350. 
D) debit Accounts Receivable $350 and credit Service Revenue $350. 
A) debit Cash $350 and credit Unearned Service Revenue $350. 
B) debit Accounts Receivable $350 and credit Unearned Service Revenue $350. 
C) debit Accounts Receivable $350 and credit Cash $350. 
D) debit Accounts Receivable $350 and credit Service Revenue $350.

Question 19

The final step in the accounting cycle is to prepare

Accepted Answer

A) closing entries. 
B) financial statements. 
C) a post-closing trial balance. 
D) adjusting entries. 
A) closing entries. 
B) financial statements. 
C) a post-closing trial balance. 
D) adjusting entries.

Question 20

Stine Company paid €530 on account to a creditor.The transaction was erroneously recorded as a debit to Cash of €350 and a credit to Accounts Receivable, €350.The correcting entry is

Accepted Answer

A)   
B)   
C)   
D)    
A)   
B)   
C)   
D)

The entry to close Income Summary to Retained Earnings includes

The following information (in thousands) is for Zháng Office Supplies: The total dollar amount of liabilities to be classified as current liabilities is

The Statement of Financial Position columns of the worksheet contain data for what financial statement?

A post-closing trial balance is prepared

It is not necessary to prepare formal financial statements if a worksheet has been prepared because financial position and net income are shown on the worksheet.

After the adjusting entries are journalized and posted to the accounts in the general ledger, the balance of each account should agree with the balance shown on the

Statement of financial position accounts are considered to be

The operating cycle of a company is determined by the number of years the company has been operating.

To close net income to Retained Earnings Income Summary is debited and Retained Earnings is credited.

A post-closing trial balance will show

Which of the following depicts the proper sequence of steps in the accounting cycle?

The total dollar amount of assets to be classified as property, plant, and equipment is

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

The net income (or loss) for the period

Which one of the following statements concerning the accounting cycle is incorrect?

The first required step in the accounting cycle is

A liability is classified as a current liability if the company is to pay it within the forthcoming year.

The final step in the accounting cycle is to prepare

Stine Company paid €530 on account to a creditor.The transaction was erroneously recorded as a debit to Cash of €350 and a credit to Accounts Receivable, €350.The correcting entry is

Accounting in Action

The Recording Process

Adjusting the Accounts

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends,and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Payroll Accounting

Other Significant Liabilities

Filters

Exam 4: Completing the Accounting Cycle

The entry to close Income Summary to Retained Earnings includes

The following information (in thousands) is for Zháng Office Supplies: The total dollar amount of liabilities to be classified as current liabilities is

The Statement of Financial Position columns of the worksheet contain data for what financial statement?

A post-closing trial balance is prepared

It is not necessary to prepare formal financial statements if a worksheet has been prepared because financial position and net income are shown on the worksheet.

After the adjusting entries are journalized and posted to the accounts in the general ledger, the balance of each account should agree with the balance shown on the

Statement of financial position accounts are considered to be

The operating cycle of a company is determined by the number of years the company has been operating.

To close net income to Retained Earnings Income Summary is debited and Retained Earnings is credited.

A post-closing trial balance will show

Which of the following depicts the proper sequence of steps in the accounting cycle?

The total dollar amount of assets to be classified as property, plant, and equipment is

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

The net income (or loss) for the period

Which one of the following statements concerning the accounting cycle is incorrect?

The first required step in the accounting cycle is

A liability is classified as a current liability if the company is to pay it within the forthcoming year.

The final step in the accounting cycle is to prepare

Stine Company paid €530 on account to a creditor.The transaction was erroneously recorded as a debit to Cash of €350 and a credit to Accounts Receivable, €350.The correcting entry is

Accounting in Action

The Recording Process

Adjusting the Accounts

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Share Transactions, Dividends,and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Payroll Accounting

Other Significant Liabilities

Filters